EIN: 721473963
UEI: LFL3NNMBL3D5
Audited by: LITTLE AND ASSOCIATES, LLC
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 10, 2026. 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 August 10, 2026 (25 days ago).
What is a management decision? →FAC accepted this audit on October 20, 2024 — management decision was due April 20, 2025.
In accordance with the HUD requirements, the Project was required to make monthly deposits to the Replacement Reserve account in the amount of $1,200 for the year ended June 30, 2024. In July 2023, a deposit in the amount of $1,200 was made to the Replacement Reserve and immediately withdrawn without HUD approval. The internal controls in place for the Replacement Reserve account were not sufficient enough to prevent the funds from being deposited and subsequently withdrawn due to insufficient funds. Cause: Unknown Effect: The Project is not in compliance with HUD’s regulations. If a significant replacement need were to arise, there may not be adequate funds in Replacement Reserve to cover the cost. Auditors’ Recommendation: Management should implement internal controls suitable to detect and prevent withdrawals without HUD approval and to ensure that the Management makes all required monthly deposits to the Replacement Reserve account. Management should also verify that sufficient funds exist prior to transferring deposits to the Replacement Reserve account. In addition, Management should establish internal control procedures to reconcile, on a monthly basis, the Replacement Reserve account balance and the Replacement Reserve general ledger to the total amount of the Replacement Reserve required by HUD. Auditor Non-Compliance Code: N – Reserve for Replacement Requirements FHA/Contract Number: 064-EE137 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: We have noted that the appearance of an unapproved withdrawal was due to insufficient funds and the monthly deposit was unable to be completed. We have also noted that the deposit was made in a subsequent month. Reporting Views of Responsible Officials: Deposits to the replacement reserve accounts are set up to automatically debit the operating account and credit the replacement reserve account. In July, 2023, this transfer was completed in the amount of $1,200.00. However, due to a system glitch, South Pointe II did not receive their July HAP payment from HUD. This resulted in funds not being sufficient for the replacement reserve transfer and the bank reversed the transfer making it appear that we withdrew money. We did not authorize a withdrawal of funds from the replacement reserve account. Response Indicator: Agree Completion Date: 06/01/2024 Response: Deposits to the replacement reserve accounts are set up to automatically debit the operating account and credit the replacement reserve account. In July, 2023, this transfer was completed in the amount of $1,200.00. However, due to a system glitch, South Pointe II did not receive their July HAP payment from HUD. This resulted in funds not being sufficient for the replacement reserve transfer and the bank reversed the transfer making it appear that we withdrew money. We did not authorize a withdrawal of funds from the replacement reserve account. Contact Person: Janet Sanderford SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Supportive Housing for the Elderly – Section 202 Assistance Listing Number 14.157 See Finding 2024-1 under Section II – Financial Statement Findings.
Show full finding ▾Hide full finding ▴SECTION II - FINANCIAL STATEMENT FINDINGS Finding 2024-1 Insufficient Internal Controls Over Monthly Replacement Reserve Funding Finding Resolution Status: Resolved Information on Universal Population Size: One Instance Sample Size: 12 Identification of Repeat Finding and Finding Reference Number: Not Applicable Questioned Costs: $0 Criteria: Monthly deposits to the Replacement Reserve account must be made monthly in accordance with HUD required amounts and all withdrawals must be approved by HUD. Condition: In accordance with the HUD requirements, the Project was required to make monthly deposits to the Replacement Reserve account in the amount of $1,200 for the year ended June 30, 2024. In July 2023, a deposit in the amount of $1,200 was made to the Replacement Reserve and immediately withdrawn without HUD approval. The internal controls in place for the Replacement Reserve account were not sufficient enough to prevent the funds from being deposited and subsequently withdrawn due to insufficient funds. Cause: Unknown Effect: The Project is not in compliance with HUD’s regulations. If a significant replacement need were to arise, there may not be adequate funds in Replacement Reserve to cover the cost. Auditors’ Recommendation: Management should implement internal controls suitable to detect and prevent withdrawals without HUD approval and to ensure that the Management makes all required monthly deposits to the Replacement Reserve account. Management should also verify that sufficient funds exist prior to transferring deposits to the Replacement Reserve account. In addition, Management should establish internal control procedures to reconcile, on a monthly basis, the Replacement Reserve account balance and the Replacement Reserve general ledger to the total amount of the Replacement Reserve required by HUD. Auditor Non-Compliance Code: N – Reserve for Replacement Requirements FHA/Contract Number: 064-EE137 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: We have noted that the appearance of an unapproved withdrawal was due to insufficient funds and the monthly deposit was unable to be completed. We have also noted that the deposit was made in a subsequent month. Reporting Views of Responsible Officials: Deposits to the replacement reserve accounts are set up to automatically debit the operating account and credit the replacement reserve account. In July, 2023, this transfer was completed in the amount of $1,200.00. However, due to a system glitch, South Pointe II did not receive their July HAP payment from HUD. This resulted in funds not being sufficient for the replacement reserve transfer and the bank reversed the transfer making it appear that we withdrew money. We did not authorize a withdrawal of funds from the replacement reserve account. Response Indicator: Agree Completion Date: 06/01/2024 Response: Deposits to the replacement reserve accounts are set up to automatically debit the operating account and credit the replacement reserve account. In July, 2023, this transfer was completed in the amount of $1,200.00. However, due to a system glitch, South Pointe II did not receive their July HAP payment from HUD. This resulted in funds not being sufficient for the replacement reserve transfer and the bank reversed the transfer making it appear that we withdrew money. We did not authorize a withdrawal of funds from the replacement reserve account. Contact Person: Janet Sanderford SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Supportive Housing for the Elderly – Section 202 Assistance Listing Number 14.157 See Finding 2024-1 under Section II – Financial Statement Findings.
Deposits to the replacement reserve accounts are set up to automatically debit the operating account and credit the replacement reserve account. In July, 2023, this transfer was completed in the amount of $1,200.00. However, due to a system glitch, South Pointe II did not receive their July HAP payment from HUD. This resulted in funds not being sufficient for the replacement reserve transfer and the bank reversed the transfer making it appear that we withdrew money. We did not authorize a withdrawal of funds from the replacement reserve account.
FAC accepted this audit on October 23, 2023 — management decision was due April 23, 2024.
FAC accepted this audit on October 16, 2022 — management decision was due April 16, 2023.
FAC accepted this audit on October 19, 2021 — management decision was due April 19, 2022.
FAC accepted this audit on October 20, 2020 — management decision was due April 20, 2021.
FAC accepted this audit on October 17, 2019 — management decision was due April 17, 2020.
FAC accepted this audit on October 9, 2018 — management decision was due April 9, 2019.
FAC accepted this audit on October 24, 2017 — management decision was due April 24, 2018.
FAC accepted this audit on January 3, 2017 — management decision was due July 3, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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