EIN: 113257656
UEI: MN9LBQAVK3H5
Data as of August 22, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 1, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 1, 2024 (721 days ago).
What is a management decision? →Criteria Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition We noted that the required annual deposits to the replacement reserve for 30 months for 2020, 2021 and 2022 amounting to $80,430 was not deposited to the replacement reserve. Cause The Project’s cash flow deficiencies resulted in noncompliance with the reserve requirement. Effect Required replacement reserve was not complied with during fiscal year 2022. Questioned Cost None. Context Thirty (30) monthly deposits to the replacement reserve was not made for 2020, 2021 and 2022. Recommendation We recommend that the Project regularly monitors deposits in the reserve for replacement to ensure that it complies with the requirements of 24 CFR sections 891.405 and 891.605 or request waiver due to cash flow issues. View of Responsible Official and Planned Corrective Action We will work on monthly cash flows availability to ensure funding the replacement reserve shortfall.
Show full finding ▾Hide full finding ▴Criteria Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition We noted that the required annual deposits to the replacement reserve for 30 months for 2020, 2021 and 2022 amounting to $80,430 was not deposited to the replacement reserve. Cause The Project’s cash flow deficiencies resulted in noncompliance with the reserve requirement. Effect Required replacement reserve was not complied with during fiscal year 2022. Questioned Cost None. Context Thirty (30) monthly deposits to the replacement reserve was not made for 2020, 2021 and 2022. Recommendation We recommend that the Project regularly monitors deposits in the reserve for replacement to ensure that it complies with the requirements of 24 CFR sections 891.405 and 891.605 or request waiver due to cash flow issues. View of Responsible Official and Planned Corrective Action We will work on monthly cash flows availability to ensure funding the replacement reserve shortfall.
We will work on monthly cash flows availability to ensure funding the replacement reserve shortfall.
2021-001
FAC accepted this audit on October 2, 2022 — management decision was due April 2, 2023.
Criteria - Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition - During the year, we noted that the required annual deposits to the replacement reserve of $32,172 was not made. Cause - The Project?s cash flow deficiencies resulted in noncompliance with the reserve requirement. Effect - Required replacement reserve was not complied with during fiscal year 2021. Questioned Cost - None. Context - Twelve (12) monthly deposits was not deposited during the year. Recommendation - We recommend that the Project regularly monitors deposits in the reserve for replacement to ensure that it complies with the requirements of 24 CFR sections 891.405 and 891.605 or request waiver due to cash flow issues.
Show full finding ▾Hide full finding ▴Criteria - Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition - During the year, we noted that the required annual deposits to the replacement reserve of $32,172 was not made. Cause - The Project?s cash flow deficiencies resulted in noncompliance with the reserve requirement. Effect - Required replacement reserve was not complied with during fiscal year 2021. Questioned Cost - None. Context - Twelve (12) monthly deposits was not deposited during the year. Recommendation - We recommend that the Project regularly monitors deposits in the reserve for replacement to ensure that it complies with the requirements of 24 CFR sections 891.405 and 891.605 or request waiver due to cash flow issues.
We will make further deposit in 2022 to correct the under deposit for the year 2021.
2020-001
FAC accepted this audit on October 28, 2021 — management decision was due April 28, 2022.
Criteria - Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition - During the year we noted that the total monthly deposits was short by an amount equal to six months deposit of $16,086. Questioned Cost - None. ; Context - Six of the 12 monthly deposits was not deposited during the year. Cause - An oversight which was corrected. Effect - Reserve deposit requirement was not complied with during fiscal year 2020. Recommendation - We recommend that the Project tracks deposits into the reserve accounts to ensure that all monthly required deposits are made. We also recommend that withdrawal from all reserve accounts are reviewed to ensure that withdrawals are coming from the correct account.
Show full finding ▾Hide full finding ▴Criteria - Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition - During the year we noted that the total monthly deposits was short by an amount equal to six months deposit of $16,086. Questioned Cost - None. ; Context - Six of the 12 monthly deposits was not deposited during the year. Cause - An oversight which was corrected. Effect - Reserve deposit requirement was not complied with during fiscal year 2020. Recommendation - We recommend that the Project tracks deposits into the reserve accounts to ensure that all monthly required deposits are made. We also recommend that withdrawal from all reserve accounts are reviewed to ensure that withdrawals are coming from the correct account.
We will track monthly deposits and comply with the required funding of the replacement reserve account and will fund the shortfall immediately.
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