Finding Text
Finding No. 2022-001 ? Replacement Reserve Funding Federal Assistance Listing Number Name of Federal Program or Cluster 14.157 Supportive Housing for the Elderly Information on the Universe Population Size 12 monthly payments Sample Size Information 12 monthly payments Identification of Repeat Finding Reference Number 2021-002 et seq. Criteria The regulatory agreement requires monthly payments of $1,640 to fund the replacement reserve. Statement of Condition The Entity was depositing the old required monthly payment rate of $1,562 and one monthly payment was not made to the replacement reserve during the year. Cause The cause of the incorrect deposit amount and missing payment was due to management oversight due to change in management personnel positions. Effect or Potential Effect The replacement reserve fund is underfunded by a total of $5,694. Auditor Non-Compliance Code N- Reserve for Replacements Deposits Questioned Costs There were no known questioned costs. Perspective The finding represents an instance of management oversight due to change in personnel. Repeat Finding Yes Recommendations Auditor recommends that the Entity fund the reserve immediately to make it current and create a better system of controls to ensure no further occurrences. Auditor notes deposit was made prior to issuance of the financial statements. No further action is required. Views of Responsible Officials Actions Taken or Planned - from Corrective Action Plan Auditee agrees with the finding and has made an additional deposit to the replacement reserve account in order to fully fund the reserve for replacements and has established a system of automatic monthly payments in order to properly fund the account going forward. Finding 2021-002 is cleared.