Finding 2023-001
material weaknessrepeat findingquestioned costs
- Program
- SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM (14.195); SUPPORTIVE HOUSING FOR THE ELDERLY (14.157)
- Compliance requirement
- Cash management
- Repeat
- Chain of 2 audit years; prior finding 2022-001
- Questioned costs
- $2,941 (known)
- FAC record
- FY2023 audit on fac.gov
Finding text from the filing
Finding #2023-001: Section 202 Supportive Housing for the Elderly, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Material Weakness Condition: The Company did not make the correct monthly deposit amount to the replacement reserve for 10 months and the Company did not obtain HUD’s approval for a withdrawal from the replacement reserve account. Criteria: The HUD regulatory agreement requires monthly deposits into the replacement reserve account and requires HUD’s approval for any withdrawals from the replacement reserve. Questioned cost: $2,941 Effect: Replacement reserve account is underfunded and the Company is in violation of its Regulatory Agreement. Cause: Oversight Repeat Finding: Yes Recommendation: 2023-001a: The Company should closely monitor the replacement reserve account to ensure compliance with the Regulatory Agreement. 2023-001b: We recommend the Company deposit $2,941 into the replacement reserve account. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: On December 19, 2023, the Company deposited $2,941 into the replacement reserve account. Finding #2023-001 cleared.