Finding 587299 (2023-002)

Finding No. 2023-002: Section 202 Supportive Housing for the Elderly – (Capital Advance) – CFDA NO. 14.157 a. Statement of condition: The required deposit of surplus cash of $9,604 as of June 30, 2022 to the residual receipts reserve account was not made within the required 60 days following the statement of financial position date. b. Criteria: Smokey Hollow is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the project’s fiscal year-end. c. Effect of condition: The project is not in compliance with the HUD regulatory agreement as it relates to the management of the residual receipts reserve. d. Cause of condition: A deposit of $4,935 was made 153 days late due to an oversight by the managing agent. The remaining $4,669 deposit due will be paid as soon as possible. Smokey Hollow should deposit the required funds in the future into the residual receipts reserve account within the 60-day requirement. f. Views of responsible officials and planned corrective actions: St. Mary’s Apartments agrees with the finding and the auditor’s recommendations have been adopted.