Finding 571016 (2025-001)

Requirement

Questioned Costs

Year

2025

Accepted

2025-07-11

Audit: 361980

Organization: Main Street Apartments, Inc. (CA)

Auditor: Aprio LLP

AI Summary

Answer: Management missed funding 4 monthly deposits to the replacement reserve.
Trend: This issue indicates a potential pattern of underfunding reserves.
List: Follow up to ensure future deposits are made on time and assess the impact on financial planning.

Management did not fund 4 monthly deposits to the replacement reserve amounting to $19,968.

Management is requesting that HUD re-evaluate the replacement reserve deposit requirements and waive the shortage for the current year.

ALN	Program Name	Expenditures
14.239	Home Investment Partnerships Program	$339,000
14.181	Supportive Housing for Persons with Disabilities	$243,486
14.218	Community Development Block Grants/entitlement Grants	$205,000