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.