Finding Text
Finding reference number: 2023-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification no. 073-EE-092)
Auditor non-compliance code: A – Unauthorized withdrawal from the reserve for replacements
Finding resolution status: Outstanding
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size is not applicable to the finding.
Statistically valid sample: Not applicable
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $16,428
Statement of condition 2023-001: The Community received a subsidy delay loan of $16,428 on July 26, 2023. As of December 31, 2023, there is no outstanding subsidy receivable and the subsidy delay loan of $16,428 has not been repaid.
Criteria: Pursuant to the OMB Approval No. 2502-0555 Form, subsidy delay loans shall be repaid upon receipt of the delayed subsidy.
Effect: The reserve for replacements is underfunded by $16,428.
Cause: The Community does not have sufficient cash available to repay the subsidy delay loan.
Recommendation: The Community should reimburse the $16,428 subsidy delay loan to the reserve for replacements account.
Management's response: Management concurs with the finding and recommendation and will repay the subsidy delay loan of $16,428 when there is sufficient cash available to do so.