FAC Explorer

Finding 560547 (2024-001)

- Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-05-16
Audit: 356468
Organization: Farrell-Bell Senior Housing Apartments, Inc. 073-Ee119 (IN)
Auditor: Agresta Storms & O'Leary

AI Summary

  • Unauthorized Withdrawal: The Corporation took $35,000 from the replacement reserve account without HUD approval.
  • Compliance Issue: This action has led to underfunding of the reserve account, violating regulatory requirements.
  • Action Needed: The Corporation plans to reimburse the account when funds are available to rectify the situation.

Finding Text

Finding No. 2024-001 Statement of Condition: The Corporation made an unauthorized withdrawal from the replacement reserve account in a prior year. Criteria: The Corporation is required to receive authorization from HUD prior to withdrawing funds from the reserve account. Questions Costs: $35,000 Effect: The replacement reserve account is underfunded causing non-compliance with the regulatory agreement. Cause: The Corporation withdrew cash from the reserve account to pay for operating expenses due to delays in PRAC being renewed resulting in the account being underfunded. Recommendation: The Corporation should reimburse the replacement reserve account when funds are available. Management Response: Management agrees with the finding and will reimburse the replacement reserve account when funds are available.

Corrective Action Plan

Corrective Action Plan Prepared by: Name: John Renner Position: Chief Financial & Administrative Officer, United Church Homes, Inc. Telephone Number: 317-281-8794 A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding No. 2024-001 A. Comments on the Finding and Each Recommendation: Management agrees with the finding and will reimburse the replacement reserve account when funds are available. B. Action Taken or Planned on the Finding: Management will deposit the funds into the replacement reserve when available.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $257,437