Finding 7627 (2023-001)

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Requirement
P
Questioned Costs
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Year
2023
Accepted
2024-01-07

AI Summary

  • Core Issue: The reserve for replacements is underfunded by $9,547, violating HUD agreement terms.
  • Impacted Requirements: Monthly deposits to the reserve for replacements are not being met, leading to non-compliance.
  • Recommended Follow-Up: Ensure timely transfers to the reserve as funds become available to rectify the situation.

Finding Text

At June 30, 2023, the reserve for replacements was underfunded by $9,547. Federal Program: Capital advance grant and project rental assistance contract Federal Award Identification: 083-EE050 Assistance Listing Number: 14.157 Federal Agency: U.S. Department of Housing and Urban DevelopmentThe HUD Regulatory Agreement, or amendments to that agreement, requires the borrower to make monthly reserve for replacements deposits.A $4,784 approved withdrawal was made twice (once by the former management agent and once by the current management agent) from the reserve for replacements and the complex did not have the funds available to make the required deposits.The borrower is not in compliance with the terms of the HUD Regulatory Agreement.We recommend that the appropriate transfer be made as soon as funds are available.We will work on making the reserve deposits as funds are available.

Corrective Action Plan

Recommendation. We recommend that the appropriate transfer be made as soon as funds are available. Management Response. We Will work on making the reserve deposits as funds are available

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $59,755