FAC Explorer

Finding 636361 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-09-28
Audit: 55445
Organization: Cliff View Village, INC 112-Ee017 (TX)
Auditor: M Group LLP

AI Summary

  • Issue: The Company only made 4 monthly deposits instead of the required 12 into the replacement reserve account.
  • Impact: This underfunding violates the HUD regulatory agreement, leading to a shortfall of $4,608.
  • Next Steps: The Company should ensure it makes the full 12 monthly deposits to comply with the regulatory agreement as soon as funds are available.

Finding Text

Finding #2022-001: Section 202 Capital Advance, CFDA 14.157 Condition: The Company made 4 monthly deposits into the replacement reserve account. Criteria: The HUD regulatory agreement requires the Company to 12 monthly deposits into the replacement reserve account. Effect: Replacement reserve account is underfunded and is in violation of its Regulatory Agreement. Questioned Cost: $4,608 Cause: Operating costs Recommendation: We recommend the Company deposit the required monthly deposits into the replacement reserve account and follow the terms of the regulatory agreement. Auditor?s Comment: The Company underfunded the replacement reserve in 2022. The Company does not have available funds to correct the underfunding. The Company will make the deposit into the replacement reserve to correct the underfunding, when funds become available.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

  • 59919 2022-001
    Significant Deficiency
  • 59920 2022-002
    Significant Deficiency
  • 636362 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $86,725