Finding Text
Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (073-EE067 and 1998) Auditor non-compliance code: N-Reserve for Replacement Deposits Finding resolution status: Cleared Universe population size: 12 reserve for replacements fund deposits Sample size information: 12 reserve for replacements fund deposits Noncompliance information: 1 reserve for replacements fund deposit Statistically valid sample: Yes Name of federal agency: U.S. Department of Housing and Urban Development Pass through entity: N/A Questioned costs: $30 Statement of condition #2022-001: The Corporation did not make all of the reserve for replacement deposits as required by HUD for the year ended June 30, 2022. Criteria: Pursuant to Section 5(a) of the Regulatory Agreement, the Community is required to make monthly deposits to the reserve for replacements fund as required by HUD. Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement and the reserve for replacements fund is underfunded by $30 at June 30, 2022. Cause: Management received a reserve for replacements fund deposit increase approved by HUD effective December 1, 2021. Management inadvertently did not start depositing the new effective monthly amount until January 1, 2022. Recommendation: Management should transfer $30 from the operating cash account to the reserve for replacements fund. Completion date: August 10, 2022 Management's response: Agree. On August 10, 2022, management transferred $30 from the operating cash account to the reserve for replacements fund.