Statement of condition
During the year ended December 31, 2024, those charged with governance of the auditee were made aware of embezzlement by an employee of the management agent during the year ended December 31, 2023.
Criteria
The auditee is required to report material noncompliance with any HUD requirement of regulations, which result in material question or disallowed cost and/or, deficiencies in internal control, instances of fraud or illegal acts, or contract violations that were disclosed during the audit process.
Cause
In July 2023, it was discovered by the management agent that one of their employees was fraudulently disbursing funds from the cash account of the Corporation and another related entity.
Effect
During the last two and half years the employee was the bookkeeper for the management agent, the employee embezzled $48,200 from the auditee’s cash account.
Questioned costs
Total fraudulent disbursements were $48,200.
Recommendation
The auditee and management agent should establish policies and controls for the proper review of operational and financial information on at least a monthly basis by those charged with governance of the auditee (i.e., Board of Directors) and those responsible for operations of the project (i.e., Executive Director).
Finding resolution status
Resolved
Views of responsible officials and corrective actions taken
The management agent pressed charges and prosecuted the employee and recovered $48,200 from the auditee’s insurance company in total (less $2,500 deductible). The management agent implemented additional internal control procedures over the processing and review of the auditee’s cash account and cash reconciliations by their employees.
Those charged with governance of the auditee also retained the services of a different auditing firm to conduct the 2024 audit of the Corporation. In addition, those charged with governance have requested the Executive Director to perform more stringent review of the operational and financial activity and reports provided by the management agent monthly.
Statement of condition
The Corporation has not been filing its annual Data Collection Form with the Federal Audit Clearinghouse.
Criteria
As required by Uniform Guidance, the Corporation is required to submit its annual Data Collection Form the earlier of within 30 days the audited financial statements are available for release or within nine months of its year end.
Cause
The filing of the Data Collection Form was not filed due to an administrative oversight.
Effect
The Corporation did not file an annual Data Collection Form.
Questioned costs
None
Recommendation
We recommend that management make arrangements to timely submit the current year Data Collection Form and put a procedure in place to timely file in future years.
Views of responsible officials and corrective actions taken
The Corporation is applying for their auditee unique entity identifier. When it is received, the Corporation will file the Data Collection Form for the year ended December 31, 2024 with the Federal Audit Clearinghouse.
Statement of condition
The Corporation has not been filing its annual Data Collection Form with the Federal Audit Clearinghouse.
Criteria
As required by Uniform Guidance, the Corporation is required to submit its annual Data Collection Form the earlier of within 30 days the audited financial statements are available for release or within nine months of its year end.
Cause
The filing of the Data Collection Form was not filed due to an administrative oversight.
Effect
The Corporation did not file an annual Data Collection Form.
Questioned costs
None
Recommendation
We recommend that management make arrangements to timely submit the current year Data Collection Form and put a procedure in place to timely file in future years.
Views of responsible officials and corrective actions taken
The Corporation is applying for their auditee unique entity identifier. When it is received, the Corporation will file the Data Collection Form for the year ended December 31, 2024 with the Federal Audit Clearinghouse.
Statement of condition
During the year ended December 31, 2024, those charged with governance of the auditee were made aware of embezzlement by an employee of the management agent during the year ended December 31, 2023.
Criteria
The auditee is required to report material noncompliance with any HUD requirement of regulations, which result in material question or disallowed cost and/or, deficiencies in internal control, instances of fraud or illegal acts, or contract violations that were disclosed during the audit process.
Cause
In July 2023, it was discovered by the management agent that one of their employees was fraudulently disbursing funds from the cash account of the Corporation and another related entity.
Effect
During the last two and half years the employee was the bookkeeper for the management agent, the employee embezzled $48,200 from the auditee’s cash account.
Questioned costs
Total fraudulent disbursements were $48,200.
Recommendation
The auditee and management agent should establish policies and controls for the proper review of operational and financial information on at least a monthly basis by those charged with governance of the auditee (i.e., Board of Directors) and those responsible for operations of the project (i.e., Executive Director).
Finding resolution status
Resolved
Views of responsible officials and corrective actions taken
The management agent pressed charges and prosecuted the employee and recovered $48,200 from the auditee’s insurance company in total (less $2,500 deductible). The management agent implemented additional internal control procedures over the processing and review of the auditee’s cash account and cash reconciliations by their employees.
Those charged with governance of the auditee also retained the services of a different auditing firm to conduct the 2024 audit of the Corporation. In addition, those charged with governance have requested the Executive Director to perform more stringent review of the operational and financial activity and reports provided by the management agent monthly.
Statement of condition
During the year ended December 31, 2024, those charged with governance of the auditee were made aware of embezzlement by an employee of the management agent during the year ended December 31, 2023.
Criteria
The auditee is required to report material noncompliance with any HUD requirement of regulations, which result in material question or disallowed cost and/or, deficiencies in internal control, instances of fraud or illegal acts, or contract violations that were disclosed during the audit process.
Cause
In July 2023, it was discovered by the management agent that one of their employees was fraudulently disbursing funds from the cash account of the Corporation and another related entity.
Effect
During the last two and half years the employee was the bookkeeper for the management agent, the employee embezzled $48,200 from the auditee’s cash account.
Questioned costs
Total fraudulent disbursements were $48,200.
Recommendation
The auditee and management agent should establish policies and controls for the proper review of operational and financial information on at least a monthly basis by those charged with governance of the auditee (i.e., Board of Directors) and those responsible for operations of the project (i.e., Executive Director).
Finding resolution status
Resolved
Views of responsible officials and corrective actions taken
The management agent pressed charges and prosecuted the employee and recovered $48,200 from the auditee’s insurance company in total (less $2,500 deductible). The management agent implemented additional internal control procedures over the processing and review of the auditee’s cash account and cash reconciliations by their employees.
Those charged with governance of the auditee also retained the services of a different auditing firm to conduct the 2024 audit of the Corporation. In addition, those charged with governance have requested the Executive Director to perform more stringent review of the operational and financial activity and reports provided by the management agent monthly.
Statement of condition
The Corporation has not been filing its annual Data Collection Form with the Federal Audit Clearinghouse.
Criteria
As required by Uniform Guidance, the Corporation is required to submit its annual Data Collection Form the earlier of within 30 days the audited financial statements are available for release or within nine months of its year end.
Cause
The filing of the Data Collection Form was not filed due to an administrative oversight.
Effect
The Corporation did not file an annual Data Collection Form.
Questioned costs
None
Recommendation
We recommend that management make arrangements to timely submit the current year Data Collection Form and put a procedure in place to timely file in future years.
Views of responsible officials and corrective actions taken
The Corporation is applying for their auditee unique entity identifier. When it is received, the Corporation will file the Data Collection Form for the year ended December 31, 2024 with the Federal Audit Clearinghouse.
Statement of condition
The Corporation has not been filing its annual Data Collection Form with the Federal Audit Clearinghouse.
Criteria
As required by Uniform Guidance, the Corporation is required to submit its annual Data Collection Form the earlier of within 30 days the audited financial statements are available for release or within nine months of its year end.
Cause
The filing of the Data Collection Form was not filed due to an administrative oversight.
Effect
The Corporation did not file an annual Data Collection Form.
Questioned costs
None
Recommendation
We recommend that management make arrangements to timely submit the current year Data Collection Form and put a procedure in place to timely file in future years.
Views of responsible officials and corrective actions taken
The Corporation is applying for their auditee unique entity identifier. When it is received, the Corporation will file the Data Collection Form for the year ended December 31, 2024 with the Federal Audit Clearinghouse.
Statement of condition
During the year ended December 31, 2024, those charged with governance of the auditee were made aware of embezzlement by an employee of the management agent during the year ended December 31, 2023.
Criteria
The auditee is required to report material noncompliance with any HUD requirement of regulations, which result in material question or disallowed cost and/or, deficiencies in internal control, instances of fraud or illegal acts, or contract violations that were disclosed during the audit process.
Cause
In July 2023, it was discovered by the management agent that one of their employees was fraudulently disbursing funds from the cash account of the Corporation and another related entity.
Effect
During the last two and half years the employee was the bookkeeper for the management agent, the employee embezzled $48,200 from the auditee’s cash account.
Questioned costs
Total fraudulent disbursements were $48,200.
Recommendation
The auditee and management agent should establish policies and controls for the proper review of operational and financial information on at least a monthly basis by those charged with governance of the auditee (i.e., Board of Directors) and those responsible for operations of the project (i.e., Executive Director).
Finding resolution status
Resolved
Views of responsible officials and corrective actions taken
The management agent pressed charges and prosecuted the employee and recovered $48,200 from the auditee’s insurance company in total (less $2,500 deductible). The management agent implemented additional internal control procedures over the processing and review of the auditee’s cash account and cash reconciliations by their employees.
Those charged with governance of the auditee also retained the services of a different auditing firm to conduct the 2024 audit of the Corporation. In addition, those charged with governance have requested the Executive Director to perform more stringent review of the operational and financial activity and reports provided by the management agent monthly.