Finding 580780 (2023-001)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-12-14

AI Summary

  • Core Issue: The Project underfunded the replacement reserve account by $2,612 due to missing one month's deposit.
  • Impacted Requirements: Monthly deposits to the replacement reserve account must comply with HUD regulations.
  • Recommended Follow-Up: Management should use monthly checklists to ensure timely and accurate deposits moving forward.

Finding Text

Finding No. 2023-001: Section 8 Housing Assistance Payments Program, ALN 14.195 Finding Resolution Status: Resolved. Information on Universe Population Size: All replacement reserve deposits for the year ended March 31, 2023. Sample Size Information: Required replacement reserve deposits for the year ended March 31, 2023. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulation, timely monthly deposits must be made to the Project’s replacement reserve account. Statement of Condition: The Project underfunded the account by $2,612. Cause: The Project did not fund the replacement reserve account for one month. Effect or Potential Effect: Deficiently funded replacement reserve. Auditor Non-Compliance Code: N – Reserve for Replacement deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 04/24/2023 Response: The accounting staff will now be using monthly checklists to ensure all required deposits are made timely.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.195 Section 8 Housing Assistance Payments Program $934,290
14.157 Supportive Housing for the Elderly $573,244
14.164 Operating Assistance for Troubled Multifamily Housing Projects Flexible Subsidy Loan $370,767