Finding 2022-001: Considered a significant deficiency in internal control over compliance. Federal Program: Supportive Housing for the Elderly (Section 202) ALN #: 14.157 Federal agency: U.S. Department of Housing and Urban Development (HUD) Criteria: In order to comply with U.S. Department of Housing and Urban Development requirements, disbursements form the replacement reserve account must be approved by HUD. Condition: During 2022, the Corporation disbursed $18,000 from the replacement reserve that had already been previously withdrawn from the account. As a result, the Corporation will be required pay back the disbursement with a deposit to the replacement reserve account in the amount of $18,000. Questioned costs: $18,000 Cause: On July 9, 2021, the Corporation received a $33,000 approval from HUD for a fire protection system project. During 2022, upon completion of the project, the Corporation withdrew the $33,000 that was previously approved. On November 23, 2022, the Corporation received a $19,609.96 withdrawal approval from HUD, however, $18,000 of this approved amount related to the previously approved and disbursed fire protection system project. Effect: The Corporation over withdrew the replacement reserve account by $18,000. Recommendation: The Corporation should pay back the $18,000 with a deposit to the replacement reserve account. Corporation?s Response: The Corporation concurs with the facts of this finding, has already paid back the $18,000 to the replacement reserve account during 2023, and is implementing procedures to prevent this in the future.
Finding 2022-001: Considered a significant deficiency in internal control over compliance. Federal Program: Supportive Housing for the Elderly (Section 202) ALN #: 14.157 Federal agency: U.S. Department of Housing and Urban Development (HUD) Criteria: In order to comply with U.S. Department of Housing and Urban Development requirements, disbursements form the replacement reserve account must be approved by HUD. Condition: During 2022, the Corporation disbursed $18,000 from the replacement reserve that had already been previously withdrawn from the account. As a result, the Corporation will be required pay back the disbursement with a deposit to the replacement reserve account in the amount of $18,000. Questioned costs: $18,000 Cause: On July 9, 2021, the Corporation received a $33,000 approval from HUD for a fire protection system project. During 2022, upon completion of the project, the Corporation withdrew the $33,000 that was previously approved. On November 23, 2022, the Corporation received a $19,609.96 withdrawal approval from HUD, however, $18,000 of this approved amount related to the previously approved and disbursed fire protection system project. Effect: The Corporation over withdrew the replacement reserve account by $18,000. Recommendation: The Corporation should pay back the $18,000 with a deposit to the replacement reserve account. Corporation?s Response: The Corporation concurs with the facts of this finding, has already paid back the $18,000 to the replacement reserve account during 2023, and is implementing procedures to prevent this in the future.
Finding 2022-001: Considered a significant deficiency in internal control over compliance. Federal Program: Supportive Housing for the Elderly (Section 202) ALN #: 14.157 Federal agency: U.S. Department of Housing and Urban Development (HUD) Criteria: In order to comply with U.S. Department of Housing and Urban Development requirements, disbursements form the replacement reserve account must be approved by HUD. Condition: During 2022, the Corporation disbursed $18,000 from the replacement reserve that had already been previously withdrawn from the account. As a result, the Corporation will be required pay back the disbursement with a deposit to the replacement reserve account in the amount of $18,000. Questioned costs: $18,000 Cause: On July 9, 2021, the Corporation received a $33,000 approval from HUD for a fire protection system project. During 2022, upon completion of the project, the Corporation withdrew the $33,000 that was previously approved. On November 23, 2022, the Corporation received a $19,609.96 withdrawal approval from HUD, however, $18,000 of this approved amount related to the previously approved and disbursed fire protection system project. Effect: The Corporation over withdrew the replacement reserve account by $18,000. Recommendation: The Corporation should pay back the $18,000 with a deposit to the replacement reserve account. Corporation?s Response: The Corporation concurs with the facts of this finding, has already paid back the $18,000 to the replacement reserve account during 2023, and is implementing procedures to prevent this in the future.
Finding 2022-001: Considered a significant deficiency in internal control over compliance. Federal Program: Supportive Housing for the Elderly (Section 202) ALN #: 14.157 Federal agency: U.S. Department of Housing and Urban Development (HUD) Criteria: In order to comply with U.S. Department of Housing and Urban Development requirements, disbursements form the replacement reserve account must be approved by HUD. Condition: During 2022, the Corporation disbursed $18,000 from the replacement reserve that had already been previously withdrawn from the account. As a result, the Corporation will be required pay back the disbursement with a deposit to the replacement reserve account in the amount of $18,000. Questioned costs: $18,000 Cause: On July 9, 2021, the Corporation received a $33,000 approval from HUD for a fire protection system project. During 2022, upon completion of the project, the Corporation withdrew the $33,000 that was previously approved. On November 23, 2022, the Corporation received a $19,609.96 withdrawal approval from HUD, however, $18,000 of this approved amount related to the previously approved and disbursed fire protection system project. Effect: The Corporation over withdrew the replacement reserve account by $18,000. Recommendation: The Corporation should pay back the $18,000 with a deposit to the replacement reserve account. Corporation?s Response: The Corporation concurs with the facts of this finding, has already paid back the $18,000 to the replacement reserve account during 2023, and is implementing procedures to prevent this in the future.