Finding 598469 (2022-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-24
Audit: 23720
Organization: Love Zion Manor (LA)
Auditor: Wharton CPA LLC

AI Summary

  • Issue: The Project failed to make timely monthly deposits into the required reserve fund.
  • Requirements Impacted: This violates the Regulatory Agreement that mandates monthly deposits into a separate bank account.
  • Follow-Up: Ensure the Property starts making the required monthly deposits as outlined in the Regulatory Agreement.

Finding Text

2022-1 Reserve for Replacement Deposits Not Made Timely Condition: The Project did not make the required deposit into the bank account on a monthly basis. Criteria: According to the Regulatory Agreement, ?mortgagor will establish and maintain a reserve fund for replacements in a separate account in a bank?Concurrently with the effective commencement of rental assistance payments under the Project Rental Assistance Contract, the Mortgagor will deposit an amount?per month unless a different date or amount is approved in writing by HUD?. Cause: The cause is undeterminable. Effect: The Project is not in compliance with the Regulatory Agreement. Recommendation: I recommend the Property make required monthly deposits according to the Regulatory Agreement.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 22027 2022-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $501,803
14.195 Section 8 Housing Assistance Payments Program $332,430