Audit 326028

Finding Type: - Immaterial noncompliance with major program requirements - Significant deficiency in internal control over compliance Title and Assistance Listing Number of Federal Program - U.S. Department of Housing and Urban Development Supportive Housing for the Elderly 14.157 Finding Resolution Status - Resolved Information on Universe and Population Size - Allowable costs incurred and expensed by the Project for the year ended June 30, 2024 Sample Size Information - 25 allowable costs incurred and expensed by the Project for the year ended June 30, 2024. Identification of Repeat Finding and Finding Reference Number - N/A Criteria - The Project should incur allowable costs that are only associated to the Project for the year ended June 30, 2024. Statement of Condition - Expenditures totaling $9,250 were improperly charged to the improper project during the year ended June 30, 2024. Cause - The Project failed to timely review proper location and address for expenditures incurred and recorded expenditures for improper project. Effect or Potential Effect - Expenditures were initially understated during the year ended June 30, 2024. Auditor Noncompliance Code - S - Internal Control Deficiency Reporting Views of Responsible Officials - Effective controls should exist to ensure that incurred expenses are being recorded in the proper project. Management has corrected the expenses reported for the project. Context - The Project failed to timely review proper location and address for the expenditure incurred and initially recorded the expenditure incurred in a different project. Recommendation - The Project needs to review internal controls to ensure that all expenses are being properly recorded in the proper project for which service is performed and determine if any modifications to stated controls are needed. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management should establish a timely review of all invoices and services incurred or purchased to ensure proper cutoff and coding. Response Indicator - Agree Completion Date - September 26, 2024 Response - Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance.

Finding Type: - Immaterial noncompliance with major program requirements - Significant deficiency in internal control over compliance Title and Assistance Listing Number of Federal Program - U.S. Department of Housing and Urban Development Supportive Housing for the Elderly 14.157 Finding Resolution Status - Resolved Information on Universe and Population Size - Allowable costs incurred and expensed by the Project for the year ended June 30, 2024 Sample Size Information - 25 allowable costs incurred and expensed by the Project for the year ended June 30, 2024. Identification of Repeat Finding and Finding Reference Number - N/A Criteria - The Project should incur allowable costs that are only associated to the Project for the year ended June 30, 2024. Statement of Condition - Expenditures totaling $9,250 were improperly charged to the improper project during the year ended June 30, 2024. Cause - The Project failed to timely review proper location and address for expenditures incurred and recorded expenditures for improper project. Effect or Potential Effect - Expenditures were initially understated during the year ended June 30, 2024. Auditor Noncompliance Code - S - Internal Control Deficiency Reporting Views of Responsible Officials - Effective controls should exist to ensure that incurred expenses are being recorded in the proper project. Management has corrected the expenses reported for the project. Context - The Project failed to timely review proper location and address for the expenditure incurred and initially recorded the expenditure incurred in a different project. Recommendation - The Project needs to review internal controls to ensure that all expenses are being properly recorded in the proper project for which service is performed and determine if any modifications to stated controls are needed. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management should establish a timely review of all invoices and services incurred or purchased to ensure proper cutoff and coding. Response Indicator - Agree Completion Date - September 26, 2024 Response - Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance.