Finding 964572 (2023-001)

Finding 2023-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Criteria: O’Brien Road Senior Apartments 2 is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the Project’s fiscal year-end. Condition: The required deposit of $7,479 for the year ended December 31, 2022 was not made within the 60 day timeline. Context: We reviewed the residual receipts deposits during the year. Cause: O’Brien Road Senior Apartments 2’s surplus cash was not performed timely. Effect: O’Brien Road Senior Apartments 2 was not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Recommendation: O’Brien Road Senior Apartments 2 should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement. Views of management and planned corrective action: O’Brien Road Senior Apartments 2 agrees with the finding and the required payment was made after the 60-day timeline.