Finding Text
FINDING No. 2022-004: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended December 31, 2022. Sample Size Information: All replacement reserve deposits for the year ended December 31, 2022. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulation, timely monthly deposits must be made to the Replacement Reserve account. Statement of Condition: The Project underfunded the account by $550. Cause: The Project submitted a request for suspension of deposits to the replacement reserve account with an effective date of 12/01/2022. This request was not approved before year-end and is currently pending approval as of the issue date of these financial statements. The Project prematurely ceased funding of the replacement reserve account for the one month. Effect or Potential Effect: Deficiently funded replacement reserve. Auditor Non-Compliance Code: N ? Reserve for Replacements Deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure the correct amount is deposited in the replacement reserve account each month. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Management has implemented a new procedure to ensure all monthly deposits are made within the current period.