Finding Text
Finding number2023-002
CFDA Number:14.157 - Supportive Housing for the Elderly
Grantor: HUD
Questioned Costs: $0
Description of Condition:
Monthly deposits to the replacement reserve are set by HUD at $2,917. The Project only made eleven of the required twelve monthly deposits.
Cause of the Condition:
The Project typically does not start making deposits until the annual budget is approved by HUD. Care was not taken to make sure the early deposits were caught up.
Effect of the Condition:
The replacement reserve was not properly funded by $2,917.
Recommendations:
Periodically throughout the year management should perform a proof of the account to make sure it is correct.