Finding 610741 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-10-23
Audit: 35017
Organization: Russo Street Apartments, Inc. (RI)
Auditor: D'ambra CPA

AI Summary

  • Issue: A required monthly deposit of $683 to the replacement reserve account was missed due to cash flow problems.
  • Impacted Requirement: Compliance with HUD regulations for Section 811, which mandates regular deposits to the reserve account.
  • Follow-Up: Management plans to address the shortfall after receiving a rent increase, ensuring future compliance with deposit requirements.

Finding Text

Finding 2022-001: Federal program - Section 811: Criteria - HUD regulations specify the amount required to be deposited on a monthly basis to the replacement reserve account.; Condition - one month?s deposit totaling $683 was not made during the year; Cause - the property is experiencing a cash flow problem and was unable to make the required deposit; Recommendation - management should make every effort to deposit the monthly required amount to the reserve account. Response: Subsequent to year end management received a rent increase and will be able to deposit the shortfall amount to the reserve account.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $79,363