Finding 523027 (2024-002)

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Assistance Listing Number: 14.157 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per HUD requirements, a mandated amount is required to be deposited into the R4R account each month. The entity failed to make the 12 required monthly deposits. Condition: During our testing, we noted that Bridge Point Senior Village failed to make one of the required twelve monthly deposits into the Replacement for Reserve account. Questioned costs: None Context: During our testing we noted 11 out of 12 monthly deposits to the Replacement for Reserve account. Cause: The deposit was not made due to oversight. Effect: Replacement Reserve is underfunded and not in compliance with HUD. Repeat Finding: No Recommendation: CLA recommends performing training regarding HUD requirements surrounding Replacement Reserve Provisions and introduce policies and procedures to prevent oversight of deposit requirements. We also recommend the amount of $564 be deposited immediately into the Replacement for Reserve Account. Views of responsible officials: There is no disagreement with the audit finding.