Finding 8355 (2023-001)

Requirement

Questioned Costs

Year

2023

Accepted

2024-01-12

Audit: 11174

Organization: Kceoc Housing Corporation II Dba Kceoc Senior Housing (KY)

Auditor: Miller Mayer Sullivan and Stevens LLP

AI Summary

Issue: The reserve for replacements is underfunded by $10,309 as of September 30, 2023.
Requirements: Monthly deposits to the reserve are mandated by the HUD Regulatory Agreement.
Follow-up: Ensure the necessary transfer is made when funds become available to achieve compliance.

Finding Text

At September 30, 2023, the reserve for replacements was underfunded by $10,309. Criteria. The HUD Regulatory Agreement, or amendments to that agreement, requires the borrower to make monthly reserve for replacements deposits. Cause. The complex did not have the funds available to make the required deposits. Effect. The borrower is not in compliance with the terms of the HUD Regulatory Agreement. Recommendation. We recommend the appropriate transfer be made as soon as funds are available.

Corrective Action Plan

Management Response. We will work to catch up the reserve deposits as much as possible.

Other Findings in this Audit

8356 2023-002

-
8357 2023-003

-
584797 2023-001

-
584798 2023-002

-
584799 2023-003

-

Programs in Audit

ALN	Program Name	Expenditures
14.157	Supportive Housing for the Elderly	$46,081