Finding 971502 (2023-001)

Findings and Questioned Costs - Major Federal Award Program Audit Finding No. 2023-001 Major Federal Program Supportive Housing for the Elderly (Section 202), CFDA 14.135 Criteria The regulations under which the Organization operates require the Organization to make monthly deposits to the replacement reserve account pursuant to the Regulatory Agreement with HUD. Statement of Condition During the year ended December 31, 2023, the Organization did not make the required monthly deposits for September 2023 to December 2023 to the replacement reserve account, totaling $6,428. Cause Personnel changes at the Organization resulted in the missed deposits to the replacement reserve account. Effect or Potential Effect Failure to make these monthly deposits resulted in an underfunding of the replacement reserve account as of December 31, 2023, which is a violation of the applicable HUD program requirements. Questioned Costs $6,428 Recommendations Management should deposit $6,428 to the replacement reserve account. Reporting Views of Responsible Officials Management concurs with the finding and a deposit of $6,428 was made to the replacement reserve account on February 21, 2024 to correct the underfunding.