Finding Type: - Significant deficiency in internal control over compliance
- Immaterial noncompliance with major program requirements
- Significant deficiency in internal control over compliance
Title and Assistance Listing Number of Federal Program - Supportive Housing for the Elderly Project Rental Assistance Contract and Capital Advance (ALN #14.157)
Finding Resolution Status - In progress
Information on Universe and Population Size - Four withdrawals from replacement reserve
Sample Size Information - 100 percent of withdrawals for HUD approval and 10 percent or a minimum of two replacement reserve withdrawals to test for proper expenditure of requested funds
Identification of Repeat Finding and Finding Reference Number - N/A
Criteria - The Organization should have internal controls in place to reconcile the replacement reserve account to ensure all withdrawals have HUD approval and all required monthly deposits or repayments of HUD approved loans are made as required by the Regulatory Agreement.
Statement of Condition - There was a lack of timely reconciliation performed by the Organization to ensure all withdrawals from the replacement reserve account had proper HUD approval, all required monthly deposits were made, and HUD approved loans were repaid timely. The Organization received approval from HUD for a $30,848 loan advance to be repaid to the replacement reserve when the November voucher payment was received (November 18, 2022); however, the loan was not repaid until January 18, 2023.
Cause - The Organization failed to perform a reconciliation of the reserve for replacement account in a timely manner.
Effect or Potential Effect - The lack of reconciliation procedures led to the reserve for replacement account being underfunded by $30,848 during the current year until the loan was refunded on January 18, 2023.
Auditor Noncompliance Code S Internal control deficiency and N Reserve for replacement deposits
Reporting Views of Responsible Officials Management agrees with the finding as reported.
Recommendation - The Organization should implement internal controls to properly reconcile the reserve for replacement account in a timely manner.
Response Indicator - Agree
Completion Date - January 18, 2023
Response - Management acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance. Management also acknowledges that it did not repay the replacement reserve timely with voucher funds subsequently received, but it did repay the $30,848 advance to the replacement reserve account on January 18, 2023.
Finding Type: - Significant deficiency in internal control over compliance
- Immaterial noncompliance with major program requirements
- Significant deficiency in internal control over compliance
Title and Assistance Listing Number of Federal Program - Supportive Housing for the Elderly Project Rental Assistance Contract and Capital Advance (ALN #14.157)
Finding Resolution Status - In progress
Information on Universe and Population Size - Four withdrawals from replacement reserve
Sample Size Information - 100 percent of withdrawals for HUD approval and 10 percent or a minimum of two replacement reserve withdrawals to test for proper expenditure of requested funds
Identification of Repeat Finding and Finding Reference Number - N/A
Criteria - The Organization should have internal controls in place to reconcile the replacement reserve account to ensure all withdrawals have HUD approval and all required monthly deposits or repayments of HUD approved loans are made as required by the Regulatory Agreement.
Statement of Condition - There was a lack of timely reconciliation performed by the Organization to ensure all withdrawals from the replacement reserve account had proper HUD approval, all required monthly deposits were made, and HUD approved loans were repaid timely. The Organization received approval from HUD for a $30,848 loan advance to be repaid to the replacement reserve when the November voucher payment was received (November 18, 2022); however, the loan was not repaid until January 18, 2023.
Cause - The Organization failed to perform a reconciliation of the reserve for replacement account in a timely manner.
Effect or Potential Effect - The lack of reconciliation procedures led to the reserve for replacement account being underfunded by $30,848 during the current year until the loan was refunded on January 18, 2023.
Auditor Noncompliance Code S Internal control deficiency and N Reserve for replacement deposits
Reporting Views of Responsible Officials Management agrees with the finding as reported.
Recommendation - The Organization should implement internal controls to properly reconcile the reserve for replacement account in a timely manner.
Response Indicator - Agree
Completion Date - January 18, 2023
Response - Management acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance. Management also acknowledges that it did not repay the replacement reserve timely with voucher funds subsequently received, but it did repay the $30,848 advance to the replacement reserve account on January 18, 2023.
Finding Type: - Significant deficiency in internal control over compliance
- Immaterial noncompliance with major program requirements
- Significant deficiency in internal control over compliance
Title and Assistance Listing Number of Federal Program - Supportive Housing for the Elderly Project Rental Assistance Contract and Capital Advance (ALN #14.157)
Finding Resolution Status - In progress
Information on Universe and Population Size - Four withdrawals from replacement reserve
Sample Size Information - 100 percent of withdrawals for HUD approval and 10 percent or a minimum of two replacement reserve withdrawals to test for proper expenditure of requested funds
Identification of Repeat Finding and Finding Reference Number - N/A
Criteria - The Organization should have internal controls in place to reconcile the replacement reserve account to ensure all withdrawals have HUD approval and all required monthly deposits or repayments of HUD approved loans are made as required by the Regulatory Agreement.
Statement of Condition - There was a lack of timely reconciliation performed by the Organization to ensure all withdrawals from the replacement reserve account had proper HUD approval, all required monthly deposits were made, and HUD approved loans were repaid timely. The Organization received approval from HUD for a $30,848 loan advance to be repaid to the replacement reserve when the November voucher payment was received (November 18, 2022); however, the loan was not repaid until January 18, 2023.
Cause - The Organization failed to perform a reconciliation of the reserve for replacement account in a timely manner.
Effect or Potential Effect - The lack of reconciliation procedures led to the reserve for replacement account being underfunded by $30,848 during the current year until the loan was refunded on January 18, 2023.
Auditor Noncompliance Code S Internal control deficiency and N Reserve for replacement deposits
Reporting Views of Responsible Officials Management agrees with the finding as reported.
Recommendation - The Organization should implement internal controls to properly reconcile the reserve for replacement account in a timely manner.
Response Indicator - Agree
Completion Date - January 18, 2023
Response - Management acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance. Management also acknowledges that it did not repay the replacement reserve timely with voucher funds subsequently received, but it did repay the $30,848 advance to the replacement reserve account on January 18, 2023.
Finding Type: - Significant deficiency in internal control over compliance
- Immaterial noncompliance with major program requirements
- Significant deficiency in internal control over compliance
Title and Assistance Listing Number of Federal Program - Supportive Housing for the Elderly Project Rental Assistance Contract and Capital Advance (ALN #14.157)
Finding Resolution Status - In progress
Information on Universe and Population Size - Four withdrawals from replacement reserve
Sample Size Information - 100 percent of withdrawals for HUD approval and 10 percent or a minimum of two replacement reserve withdrawals to test for proper expenditure of requested funds
Identification of Repeat Finding and Finding Reference Number - N/A
Criteria - The Organization should have internal controls in place to reconcile the replacement reserve account to ensure all withdrawals have HUD approval and all required monthly deposits or repayments of HUD approved loans are made as required by the Regulatory Agreement.
Statement of Condition - There was a lack of timely reconciliation performed by the Organization to ensure all withdrawals from the replacement reserve account had proper HUD approval, all required monthly deposits were made, and HUD approved loans were repaid timely. The Organization received approval from HUD for a $30,848 loan advance to be repaid to the replacement reserve when the November voucher payment was received (November 18, 2022); however, the loan was not repaid until January 18, 2023.
Cause - The Organization failed to perform a reconciliation of the reserve for replacement account in a timely manner.
Effect or Potential Effect - The lack of reconciliation procedures led to the reserve for replacement account being underfunded by $30,848 during the current year until the loan was refunded on January 18, 2023.
Auditor Noncompliance Code S Internal control deficiency and N Reserve for replacement deposits
Reporting Views of Responsible Officials Management agrees with the finding as reported.
Recommendation - The Organization should implement internal controls to properly reconcile the reserve for replacement account in a timely manner.
Response Indicator - Agree
Completion Date - January 18, 2023
Response - Management acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance. Management also acknowledges that it did not repay the replacement reserve timely with voucher funds subsequently received, but it did repay the $30,848 advance to the replacement reserve account on January 18, 2023.