Audit 379137

Finding 2025-001 Information of federal program Section 202 Supportive Housing for the Elderly Federal Assistance Listing Number 14.157. Questioned costs $0 Criteria Operating costs paid for services not provided is considered an unallowable cost. Condition Our consideration of internal control disclosed that the management company incorrectly segregated invoices and an invoice for another Organization was paid. Cause Bills were not correctly segregated between Organization’s before payment was remitted. Effect Disallowed costs were identified, although the amount identified did not meet the threshold for reporting as a questioned cost under the Uniform Guidance. Recommendation Management should review its controls over proper identification of costs associated with each Organization. Views of management Management concurs. Auditors’ summary of the auditee’s comments on the findings and recommendations Management will reevaluate controls around invoice cancellation in efforts to minimize potential error going forward.

Finding 2025-002 Information on federal program Section 202 Supportive Housing for the Elderly Federal Assistance Listing Number 14.157. Questioned costs $0 Criteria The Organization is required to make deposits into an escrow account to fund tax and insurance payments for the fiscal year. Condition The Organization’s escrow cash account did not have adequate deposits as of June 30, 2025. Cause The Organization had inadequate cash on hand to fund the escrow account. Effect The Organization may not be able to pay for their taxes and insurance for the upcoming year. Recommendation Management should budget for monthly tax and insurance escrow deposits and request a rent increase to prevent future shortfalls in escrow cash. Views of Management Management concurs. Auditors’ summary of the auditee’s comments on the findings and recommendations Management will request a rent increase and make deposits to the escrow account sufficient to cover future tax and insurance costs.