Finding 578010 (2023-001)

Finding # 2023-001 Federal Grantor: U.S. Department of Housing and Urban Development AL# / Program : 14.157- Supportive Housing for the Elderly Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: Project is required to make monthly deposits to the reserve for replacements of $2,198. Sample size: Tests were performed on the twelve required monthly deposits. Criteria: Project is required to make monthly deposits in the amount of $2,198 to the reserve for replacement as required by HUD. Statement of Condition: Reserve for replacement is underfunded by $26,376.00 Cause: Project did not make payments due to cash flow issues. Effect or Potential Effect: Project is not in compliance with HUD compliance requirements. Auditor Non-Compliance Code: N - Replacement Reserve Deposits Questioned Costs: $- Reporting Views of Responsible Officials: Replacement reserve deposit waiver requested but denied. Context: N/A Recommendation: We recommend the Project make the required deposit to the reserve for replacement account or request HUD approval to waive deposits until cashflow improves. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Replacement reserve deposit waiver requested but denied. Response Indicator: Agrees Completion Date: 6/30/2023 Response: Replacement reserve deposit waiver requested but denied. Finding # 2023-001 Federal Grantor: U.S. Department of Housing and Urban Development AL# / Program : 14.157- Supportive Housing for the Elderly Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: Project is required to make monthly deposits to the reserve for replacements of $2,198. Sample size: Tests were performed on the twelve required monthly deposits. Criteria: Project is required to make monthly deposits in the amount of $2,198 to the reserve for replacement as required by HUD. Statement of Condition: Reserve for replacement is underfunded by $26,376.00 Cause: Project did not make payments due to cash flow issues. Effect or Potential Effect: Project is not in compliance with HUD compliance requirements. Auditor Non-Compliance Code: N - Replacement Reserve Deposits Questioned Costs: $- Reporting Views of Responsible Officials: Replacement reserve deposit waiver requested but denied. Context: N/A Recommendation: We recommend the Project make the required deposit to the reserve for replacement account or request HUD approval to waive deposits until cashflow improves. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Replacement reserve deposit waiver requested but denied. Response Indicator: Agrees Completion Date: 6/30/2023 Response: Replacement reserve deposit waiver requested but denied.