Finding 973019 (2023-001)

FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly – Capital Advance, 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: In accordance with HUD, required monthly deposits must be made to the Project’s reserve for replacement account. Statement of Condition: The Project underfunded the account by $7,590. Cause: The Project did not make all the required monthly deposits during the period. Effect or Potential Effect: Deficiently funded reserve for replacement account. Auditor Non-Compliance Code: N – Reserve for Replacements Deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation has been adopted. Recommendation: Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 10/30/2023 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 transfers.