Finding Text
Assistance Listing number: 14.181-Supportive Housing for Persons with Disabilities
Grantor: HUD
Questioned Costs: $0
Description of the Condition:
The monthly deposit to the replacement reserves was increased effective August 1, 2022. Through a miscommunication the deposit made starting August 1 was the increase in the deposit indicated on the Form 9250 although the preapproval amount was incorrect on the form.
Cause of the Condition:
There were delays in processing the paperwork for the rent increase which the deposit increase was part of and through a miscommunication the incorrect deposit was made for the final 11 months of the year.
Effect of the Condition:
Replacement reserves were underfunded by 9,787.25 and excess cash remained in the operating fund.
Recommendation:
Deposits should only be made based on the Form 9250.