Finding 523043 (2024-002)

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 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 did not complete all 12 monthly deposits accordingly. Condition: During our testing, we noted that Woodside Village failed to make the correct number of monthly deposits into the Replacement for Reserve account resulting in underfunding Questioned costs: None Context: During our testing we noted that the entity underfunded Replacement Reserve Account by $400 due to a missed deposit. Cause: The deposit was not made due to an oversight. Effect: Replacement Reserve is underfunded and not in compliance with HUD. Repeat Finding: No Recommendation: CLA recommends performing training regarding HUD requirements surrounding Residual Receipts Provisions and introduce policies and procedures to prevent requirement oversight. Views of responsible officials: There is no disagreement with the audit finding.