Finding 573037 (2024-001)

FINDING No. 2024-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended December 31, 2024. Sample Size Information: All replacement reserve deposits for the year ended December 31, 2024. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, required monthly deposits must be made to the Project’s reserve for replacement account, as authorized by HUD. Statement of Condition: The Project overfunded the reserve for replacement account by $4,143. Cause: The Project overfunded the reserve for replacement account by depositing an extra monthly deposit in the amount of $3,043 and depositing an excess amount of $1,100 when taking corrective action for Finding 2023-002. Effect or Potential Effect: Overfunding of the reserve for replacement. Auditor Non-Compliance Code: N – Replacement Reserve Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted. Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month, verify the accuracy of any additional required deposits, and submit a form HUD-9250 to withdraw the excess funding. Response Indicator: Agree. Completion date: 12/31/2025 Response: The verification of the correct funding amounts is now confirmed against approved 9250 on a monthly basis, and is a step that has been added on the month-end close checklist.