Audit 395076

Department of Housing and Urban Development CFDA #14.181 Supportive Housing for Persons with Disabilities Special Provisions and Testing – Residual Receipts Account Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria – A good system of internal control over compliance related to the program’s residual receipts account should ensure excess operating funds be deposited in the fund account within 60 days following the end of the fiscal year. Condition – The Corporation did not deposit project funds in a federally insured account within 60 days of the fiscal year end. Cause – The Corporation did not have the deposit amount determined timely enough to have the project funds deposited within 60 days of the fiscal year end. Effect – Without proper implementation of internal controls over the residual receipts account, error could occur and result in the Corporation’s failure to meet the specific program residual receipts requirement. Questioned Costs – None reported Context/Sampling – The required annual deposit was tested and was not deposited within 60 days of year end. Report Finding from Prior Year – Yes, 2024-003 Recommendation – We recommend the required amount of project funds be deposited within 60 days following the end of the fiscal year. Views of Responsible Officials – Management agrees with the finding.

Department of Housing and Urban Development CFDA #14.181 Supportive Housing for Persons with Disabilities Special Provisions and Testing – Contract Rent Adjustment Significant Deficiency in Internal Control over Compliance Criteria – A good system of internal control over compliance related to the program’s contract rent adjustments should ensure a separate review is performed on the budget worksheet HUD- 92457-A prior to submission. Condition – The Corporation did not have a separate review performed on the budget worksheet HUD-92457-A prior to submission. Cause – The Corporation did not have controls in place to ensure a separate review is performed on the budget worksheet HUD-92457-A after it is prepared. Effect – Without proper implementation of internal controls over the review of the budget worksheet HUD-92457-A, errors could occur and result in the Corporation’s failure to meet the specific program contract rent adjustment requirements. Questioned Costs – None reported Context/Sampling – The required annual budget worksheet HUD-92457-A was tested. Report Finding from Prior Year – No Recommendation – We recommend management implement controls to ensure a separate review over the budget worksheet HUD-92457-A is completed by someone other than the preparer before it is submitted to HUD. Views of Responsible Officials – Management agrees with the finding.