Finding 61628 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-23
Audit: 57108
Auditor: Wipfli LLP

AI Summary

  • Core Issue: Required deposits for replacement reserves ($6,900) and residual receipts ($23,964) were not made on time for 2022.
  • Impacted Requirements: Owners must remit annual amounts to reserve accounts within specified timeframes as per HUD guidelines.
  • Recommended Follow-Up: Review and update policies to ensure timely deposits; new property management will be briefed on requirements.

Finding Text

Information on the Federal Program: Department of Housing and Urban Development, AL 14.181 Supportive Housing for Persons with Disabilities. Questioned Costs: None How the questioned costs were computed: N/A Condition: Required deposits for the year ended December 31, 2022 of replacement reserves of $6,900 and residual receipts of $23,964 were not remitted to the proper reserve accounts within the required timeframe. Criteria: Owners are required to remit an annual amount to the replacement and residual reserve accounts within the required timeframe. Cause: Due to the non-payment of HAP receivable from August 2022 to December 2022, the Project lacked sufficient operating cash to pay the required deposits. Effect: The total annual cash remittance to the replacement and residual receipts reserve accounts were not made in accordance with HUD guidelines. Repeat Finding: Yes Recommendation: Policies and procedures should be reviewed to ensure timely remittance of replacement and residual receipts reserve deposits into the proper reserve account within the required timeframe. Views of Responsible Officials and Planned Corrective Actions: The Rodney Scheel House Foundation, LTD. agrees with the finding. To ensure timely remittance, the Foundation will review policies and procedures and discuss requirements with the new property management company that became responsible for property management effective January 1, 2023.

Corrective Action Plan

Finding 2022-001 ? Replacement and Residual Reserve Submissions Corrective Action Plan The Rodney Scheel House Foundation, Ltd. will review their policies and procedures surrounding replacement reserve and residual receipts reserve cash remittances to the reserve bank accounts within the required HUD timeframes. The Foundation will discuss requirements with the new property management company that became responsible for property management effective January 1, 2023. Person(s) Responsible: Kendra Eppler, Nicole Solheim, Curt Peerenboom Timing for Implementation: Immediate

Categories

HUD Housing Programs Cash Management

Other Findings in this Audit

  • 61629 2022-001
    Significant Deficiency Repeat
  • 638070 2022-001
    Significant Deficiency Repeat
  • 638071 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $218,115
14.181 Supportive Housing for Persons with Disabilities $176,505
14.241 Housing Opportunities for Persons with Aids $42,095
21.027 Dane County Department of Human Services $15,000