Finding 6790 (2023-001)

Statement of condition 2023-1: Concord Residential Club (the Organization) did not deposit all 12 monthly payments ($919.93) to the reserve for replacement bank account. During the year-ended March 31, 2023, only 7 monthly payments were deposited to the bank account with the other 5 payments being deposited subsequent to the year end. Criteria: As indicated in the Regulatory agreement with HUD and the program guidelines in ALN 14.157 Supportive Housing for the Elderly, the amount required by HUD will be deposited monthly in the reserve for replacement bank account. Cause: The Organization had a change in the accounting department and the appropriate procedures were not followed to ensure the monthly deposits to the reserve for replacements were made. Effect: The Organization did not make 5 of the required monthly deposits to the reserve for replacement bank account as required by HUD.Recommendation: The Organization’s management should create controls to ensure the procedures are followed to ensure all deposits to the reserve for replacement account are made monthly.