OLDTIMERS HOUSING DEVELOPMENT

Criteria Management is required to maintain fidelity bond coverage equal to or exceeding two months of gross potential rent collections. Management currently does not have fidelity bond coverage. Statement of Condition Fidelity bond coverage is insufficient to meet the Section 8 Housing Assistance Payments program requirements. Effect or Potential Effect Insufficient fidelity bond coverage to meet program requirements. Cause Management was not aware that fidelity bond coverage was a requirement as part of the program. Recommendation We recommend that management obtain fidelity bond coverage to meet program requirements. Views of Responsible Officials and Planned Corrective Action Management will review program requirements for fidelity bond coverage and obtain appropriate coverage.

Criteria Management is required to maintain a current, executed management agent certification in accordance with program requirements to evidence the formal arrangement and responsibilities of the management agent. Statement of Condition The Organization did not have a current, executed management agent certification in place during the audit period. Effect or Potential Effect Lack of a current, executed management agent certification will result with noncompliance with program requirements. Cause Management has attempted but has not been able to obtain an updated executed management agent certification from the program administrator. Recommendation We recommend that management obtain an updated executed management agent certification. Views of Responsible Officials and Planned Corrective Action Management is in agreement and will work with the program administrator in order to get an updated executed management agent certification.

50000 – Federal Compliance Federal Agency: U.S. Department of Housing and Urban Development Pass‐through Entity: N/A (Direct Award) Federal Program: Supportive Housing for the Elderly ‐ Section 202 & Section 8 Housing Assistance Payments Program ALN: 14.157 & 14.195 Compliance Requirement: Special Tests and Provisions Type of Finding: Significant Deficiency and Non‐Compliance Criteria or Specific Requirements In accordance with 24 CFR Section 891.405(b) and 24 CFR Section 880.602, the management is responsible for making monthly required deposits into the replacement reserve account in an amount determined by HUD. Condition We noted one instance during our testing where management did not make the required monthly deposit into the replacement reserve account on a timely manner. Monthly deposit for November 2022 through January 2023 were made in February 2023. Questioned Costs There were no questioned costs associated with the condition identified Context The condition was identified as a result of reviewing the Corporation’s financial reports, monthly bank account statement, and supporting documents supporting the amounts reported. Effect The Corporation has not complied with requirement identified in 24 CFR Section 891.405(b) and 24 CFR Section 880.602. Cause Management’s policies were not followed with respect to making the HUD required monthly deposit into the replacement reserve account on time. Repeat Finding No. Recommendation Management should implement control and procedures to ensure the required monthly deposits are made in a timely manner. Corrective Action Plan and Views of Responsible Officials The Corporation will ensure that all monthly deposits to the replacement reserve are made in a timely manner.

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

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