Finding Text
Reference Number: 2023-001
(S3800-010)
Title and CFDA Number
of Federal Program: Supportive Housing for the Elderly Assistance Lising Number 14.157
(S3800-011)
Type of Finding: Financial Statement and Compliance finding
(S3800-015)
Finding Resolution Status: Resolved
(S3800-016)
Information on Universe
Population Size: All monthly replacement reserve deposit for the year ended June 30, 2023.
(S3800-017)
Sample Size Information: 12
(S3800-018)
Criteria: A good system of internal control requires proper controls in place to ensure
(S3800-020) monthly deposits are made in a timely manner.
Statement of Condition: The replacement reserve account was underfunded during the year due to
(S3800-030) change in the monthly required amount.
Cause: Management feels this was an oversight due the staff turnover during the year
(S3800-032) and has corrected the process.
Effect or Potential Effect: The replacement reserve account was underfunded at year-end.
(S3800-033)
Auditor Noncompliance Code: S – Internal control deficiencies
(S3800-035)
Questioned Cost: $4,604
(S3800-040)Reporting Views of
Responsible Officials: See management’s response (S3800-150)
(S3800-045)
•FHA/Contract Number: 042-EE192
(3800-037)
•Questioned Costs: $4,604
(3800-038)
Context: Testing of the Project’s replacement reserve deposits.
(S3800-050)
Recommendation: We recommend that the underfunded amount be deposited into the
(S3800-080) replacement account. Certain controls should be reviewed to prevent and
detect these issues.
Auditor’s Summary None necessary based on management’s response.
of the Auditee’s
Comments on the
Finding and
Recommendation:
(S3800-090)
•Response Indicator: Agree
(3800-130)
Completion Date: September 26, 2023
(3800-140)
Response: Management deposited the underfunded amount into replacement reserve
(S3800-150) account on September 26, 2023.
Contact Person: Fred Berry
(S3800-160 to 180)