Finding Text
Finding # 2024-011
Repeat finding: Repeat of prior year finding 2023-001
Federal Grantor: U.S. Department of Housing and Urban Development
AL # / Program: 14.181 - Supportive Housing for Persons with Disabilities
Type of Finding: Federal Award Finding - Special Tests and Provisions
Finding Resolution Status: In Process
Information on Universe Population Size: Project is required to make twelve (12) monthly deposits to the reserve for replacements of $3,000.
Sample size information: Tests were performed on the 12 required monthly deposits. Project is delinquent on all 12 required monthly deposits totaling $36,000.
Criteria: The Housing for Persons with Disabilities Section 811 of the Housing Act of 1959 Regulatory Agreement signed by the Project on September 13, 2005 and changed by HUD-95250 dated December 2, 2022 requires the Project to make twelve (12) monthly deposits to the reserve for replacements of $3,000.
Statement of Condition / Context: The Project is not in compliance with the Housing for Persons with Disabilities Section 811 of the Housing Act of 1959 Regulatory Agreement.
Cause: A deficiency in controls over compliance with the compliance requirements in the Housing for Persons with Disabilities Section 811 of the Housing Act of 1959 Regulatory Agreement.
Effect or Potential Effect: The Project is not in compliance with the Housing for Persons with Disabilities Section 811 of the Housing Act of 1959 Regulatory Agreement.
Auditor Non-Compliance Code: N - Reserve for Replacements deposits
Questioned Costs: No questioned costs associated with this finding.
Recommendations: We recommend that Management review their controls over compliance with the compliance requirements in the Housing for Persons with Disabilities Section 811 of the Housing Act of 1959 Regulatory Agreement.
Response Indicator: Agree
Completion Date: 5/31/2025
Reporting Views of Responsible Officials and Planned Corrective Action: "HCEB will engage A&E Housing Group to review HCEB's controls over compliance in
accordance with the Project's Housing for Persons with Disabilities Section 811 of the Housing Act of 1959 Regulatory Agreement. Internal controls will be documented and monitored by the HCEB Asset Manager by May 31, 2025.
"