Finding Text
FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157
Finding Resolution Status: Resolved.
Information on Universe Population Size: All replacement reserve deposits for the year ended September 30, 2023.
Sample Size Information: All replacement reserve deposits for the year ended September 30, 2023.
Identification of Repeat Finding and Finding Reference Number: No.
Criteria: As required by HUD regulation, timely monthly deposits must be made to the Replacement Reserve account.
Statement of Condition: The Project underfunded the account by $664.
Cause: The Project did not fund the replacement reserve account for one month.
Effect or Potential Effect: Deficiently funded replacement reserve.
Auditor Non-Compliance Code: N – Reserve for Replacements Deposits.
Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted.
Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree.
Completion Date: 10/27/2023
Response: Deposits are made to the replacement reserves on a monthly basis. A new checklist is being implemented to ensure the accuracy of the amounts and completeness of the transfers.