Finding 618620 (2022-003)

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Requirement
C
Questioned Costs
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Year
2022
Accepted
2023-03-14
Audit: 39066
Organization: Statewide Bay Landing Ii, Inc. (RI)
Auditor: D'ambra CPA

AI Summary

  • Issue: One monthly deposit of $3,242 was missed and another was made late due to cash flow problems and management transition.
  • Requirements Impacted: HUD regulations require timely monthly deposits to the replacement reserve account.
  • Follow-Up: The current management agent has made the missed deposit and commits to timely future deposits.

Finding Text

Federal program - Section 202: Criteria - HUD regulations specify the amount required to be deposited on a monthly basis to the replacement reserve account.; Condition - one month?s deposit was made late by the prior management agent and one month?s deposit totaling $3,242 was not made by the current management agent; Cause - the late deposit was due to the property experiencing a cash flow problem and was unable to make the deposit timely, the missed deposit by the current management agent was due to the timing of the transition of the management from one agent to another; Recommendation - the current management agent should make the necessary deposit and make every effort to deposit the monthly required amounts to the reserve account. Response: Subsequent to year end the current management agent made the necessary deposit and will make the required monthly deposits timely in the future.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $115,105