Finding 960809 (2023-001)

2023-001 Residual Reserve Submissions Information on the Federal Program: Department of Housing and Urban Development, AL 14.181 Supportive Housing for Persons with Disabilities. Questioned Costs: None How the questioned costs were computed: N/A Condition: Required deposits of residual receipts for the year ended December 31, 2022 of $23,964 and for the year ended December 31, 2023 of $8,564 were not remitted to the proper reserve accounts within the required timeframe. Criteria: Owners are required to remit an annual amount to the replacement and residual reserve accounts within the required timeframe. Cause: Due to the transition between property management companies, records and assets were in transition during the first part of 2023 and the required deposits were not made within the required timeframe. Effect: The total annual cash remittance to the replacement and residual receipts reserve accounts were not made in accordance with HUD guidelines. Repeat Finding: Yes Recommendation: Policies and procedures should be reviewed to ensure timely remittance of replacement and residual receipts reserve deposits into the proper reserve account within the required timeframe. Views of Responsible Officials and Planned Corrective Actions: The Rodney Scheel House Foundation, LTD. agrees with the finding. To ensure timely remittance, the Foundation will review policies and procedures and discuss requirements with the property management company to ensure deposits are made in accordance with the required timeframes.