Finding Text
Finding reference number: 2023-002
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The universe population size is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $598
Statement of condition 2023-002: The Corporation did not make the required monthly deposits to the reserve for replacements account. The reserve for replacements is underfunded by $598 as of June 30, 2023.
Criteria: Pursuant to the regulatory agreement, the Corporation is required to make monthly deposits
into a separate reserve for replacements account.
Effect: The Corporation is not in compliance with the terms of the regulatory agreement. The reserve
for replacements is underfunded by $598 as of June 30, 2023.
Cause: Management inadvertently omitted depositing funds in June 2023 in the amount of $598.
Recommendation: Management should deposit $598 into the reserve for replacement.
Completion date: September 1, 2023
Management's response: Management agrees with the finding and auditor's recommendation. On September 1, 2023, management transferred $598 to the reserve for replacements.