Finding Text
Assistance Listing title and number (federal award identification and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 114-EE052 and 1999)
Auditor non-compliance code: Z - Other
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal Agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $24,300
Statement of Condition 2025-001 (Assistance Listing 14.157): During the year ended January 31, 2025, HUD approved $83,950 of withdrawals as a pre-release to pay for HVAC replacements and boilers at the Property. The Corporation used $24,300 of the pre-release to fund operations, instead of paying the invoices approved by HUD and had not paid as of January 31, 2025.
Criteria: Pursuant to Section 5 of the Regulatory Agreement, the Corporation may only make disbursements from the reserve for replacements for payments of amounts as approved by HUD.
Effect: The Corporation is not in compliance with the Regulatory Agreement.
Cause: Due to cash flow shortages, the Corporation was unable to use reserve for replacement withdrawals in the manor approved by HUD.
Recommendation: Management should ensure that HUD approved reserve for replacement withdrawals are used for the approved purposes.
Completion Date: March 3, 2025
Management Response: Agree. The Corporation paid the remaining costs included in the HUD approved withdrawal on March 3, 2025. There is no further action required.