Finding Text
Finding 2021-001 ? Reserve for Replacement Required Deposits Information on the Federal Program: Department of Housing and Urban Development, CFDA 14.157 Supportive Housing for the Elderly Questioned Costs: None How the questioned costs were computed: N/A Condition: The required monthly deposit to the reserve for replacement was increased by HUD, effective August 1, 2022. During the year ended December 31, 2022, the Project did not increase its monthly deposits to the replacement reserve to comply with the new requirement. Criteria: An amount, as required by HUD, is to be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). Cause: The requirement to adjust the monthly deposit to the reserve for replacement was overlooked. Effect: The monthly deposits to the reserve for replacement was not made in accordance with HUD guidelines. Repeat Finding: No Recommendation: Policies and procedures should be reviewed to ensure timely adjustments to the monthly reserve for replacement deposits when necessary. Views of Responsible Officials and Planned Corrective Actions: Beloit Assisted Living, Inc. agrees with the finding and will review policies and procedures to ensure timely remittance.