Finding 617982 (2022-001)

-
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: The reserve for replacements account was underfunded by $872 due to missed deposits.
  • Impacted Requirements: The Company did not comply with HUD's requirement to fund the account at $290.58 monthly.
  • Recommended Follow-Up: Ensure the $872 in missed deposits is made promptly and commit to making all future deposits on time.

Finding Text

Criteria - HUD requires that the reserve for replacements account be funded by $290.58 monthly in accordance with the regulatory agreement. Condition - The reserve for replacements account was underfunded by $872 during the year ended December 31, 2022. Cause - The Company's accountant failed to make 3 months of required deposits. Effect - The Company was not in compliance with the above HUD regulations and the reserve for replacements account was underfunded by $872. Questioned Costs - None identified. Recommendation - We recommend that the delinquent deposits totaling $872 for the year ended December 31 2022 be deposited into the reserve for replacements account as soon as possible. Management's Response - Management understands HUD's required deposit requirement and will deposit 12 months going forward.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $34,604