Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Old Towne Square, Inc. did not elect to use the 10-precent de minimis indirect cost rate allowed under the Uniform Guidance.
CFDA# 14.157- Supporting Housing for the Elderly
2024-001-Lack of Adequate Quality Control Regarding Tenant Procedures- Eligibility
Criteria and Condition
The quality of supervision over tenant file functions, such as calculating tenant rent and Housing Assistance Payments should be timely and sufficient to find errors in calculations or mis-application or mis-understanding of procedures.
Context
We did not note any exceptions in the tenant files that we reviewed. However, there was no documented quality control of the waiting list and tenant files. Statement of Auditing Standards (SAS) No. 115 defines what is considered “material weaknesses” in internal control. The examples given by the Standard includes “inadequate design of controls over a significant amount or process.” Lack of documented representative checks regarding the waiting list and tenant files are considered a lack of controls.
Cause
The person who was in charge of this unexpectedly passed away last year.
Effect
Errors are not detected and corrected, if necessary, on a timely basis.
Questioned Costs
None
Recommendation
Quality control checks should be done at least on a quarterly basis.
View of Responsible Official
I am Rita Love, Executive Director. We will comply with the auditor’s recommendation.
CFDA# 14.157- Supporting Housing for the Elderly
2024-001-Lack of Adequate Quality Control Regarding Tenant Procedures- Eligibility
Criteria and Condition
The quality of supervision over tenant file functions, such as calculating tenant rent and Housing Assistance Payments should be timely and sufficient to find errors in calculations or mis-application or mis-understanding of procedures.
Context
We did not note any exceptions in the tenant files that we reviewed. However, there was no documented quality control of the waiting list and tenant files. Statement of Auditing Standards (SAS) No. 115 defines what is considered “material weaknesses” in internal control. The examples given by the Standard includes “inadequate design of controls over a significant amount or process.” Lack of documented representative checks regarding the waiting list and tenant files are considered a lack of controls.
Cause
The person who was in charge of this unexpectedly passed away last year.
Effect
Errors are not detected and corrected, if necessary, on a timely basis.
Questioned Costs
None
Recommendation
Quality control checks should be done at least on a quarterly basis.
View of Responsible Official
I am Rita Love, Executive Director. We will comply with the auditor’s recommendation.