Finding Text
S3800-010: Finding Reference Number
2023-001 (Significant Deficiency)
S3800-011: Program Information
Federal Program: Supportive Housing for Persons with Disabilities - Section 811
Federal Agency: U.S. Department of Housing and Urban Development
Assistance Listing #: 14.181
Pass-through Entity: None
Federal Award Identification Number and Year: N/A
Type of Compliance Finding: N – Special Tests and Provisions
S3800-015: Type of Finding
Federal Awards
S3800-016: Finding Resolution Status
Resolved
S3800-017: Information on Universe Population Size
N/A
S3800-018: Sample Size Information
N/A
S3800-019: Identification of Repeat Finding and Finding Reference Number
N/A
S3800-020: Criteria
HUD Form-9250, Funds Authorizations, and the regulatory agreement requires the Organization to deposit $720 into the replacement reserve account on a monthly basis.
S3800-030: Statement of Condition
During our audit of the Organization’s fiscal year ended June 30, 2023 federal award program, we noted the Organization failed to make the required monthly deposit of $720 into the reserve for replacement account from January to June 2023.
S3800-032: Cause
The Organization failed to deposit the required monthly amount into the reserve for replacement account for January to June 2023.
S3800-033: Effect or Potential Effect
The Organization was not in compliance with the regulatory agreement to make required monthly deposits into the reserve for replacement account. S3800-035: Auditor Non-Compliance Code
N – Reserve for replacements deposits
S3800-040: Questioned Costs
$4,320
S3800-045: Reporting Views of Responsible Officials
Management agrees with the auditor’s finding.
S3800-050: Context
The Organization missed depositing $4,320 into the reserve for replacement account for July – December during the year ended June 30, 2023. The deposit was made in July 2023.
S3800-080: Recommendation
The Organization should ensure the process to reconcile replacement reserve on a monthly basis is being followed so that missing deposit is identified on a timely basis.
S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations
Concur
S3800-130: Response Indicator
Agree
S3800-140: Completion Date or Proposed Completion Date
July 2023
S3800-150: Response
See Corrective Action Plan