Finding Text
S3800-010: Finding Reference Number 2022-001 (Significant Deficiency) S3800-011: Program Information Federal Program: Supportive Housing for the Elderly ? Section 202 Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Resolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria The regulatory agreement requires that the Organization deposit $2,000 into the replacement reserve account on a monthly basis. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended December 31, 2022 federal award program, we noted the Organization failed to make required monthly deposits into the reserve for replacement account for seven months. Also, there is an additional shortage of $56 in the reserve for replacement account that was not transferred from the predecessor management company to current management company. S3800-032: Cause The Organization overlooked depositing the required monthly amounts into the reserve for replacement account and the $56 discrepancy is unknown. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement requirement to make monthly deposits into the reserve for replacement account. S3800-035: Auditor Non-Compliance Code N ? Reserve for replacements deposits S3800-040: Questioned Costs $14,056 S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization made five months of deposits into the reserve for replacement account during the year ended December 31, 2022. The Organization was required to make twelve timely, monthly deposits during the year. S3800-080: Recommendation The Organization should deposit $14,056 to the replacement reserve account as soon as possible. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date May 4, 2023 S3800-150: Response See Corrective Action Plan