Finding Type Significant deficiency in internal control over compliance Title and CFDA Number of Federal Program 14.181 U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811). Finding Resolution Status In Process Information on Universe and Population Size The population includes all required deposits to the replacement reserve for fiscal year 2022. Sample Size Information N/A Identification of Repeat Finding and Finding Reference Number N/A Criteria The Organization should have made 2 monthly deposits of $3,505 and 10 monthly deposits of $3,586 into the reserve for replacements account as required by the regulatory agreement. Statement of Condition The Organization failed to make the required reserve for replacements deposits in the current fiscal year. Cause The Organization failed to monitor the cash requirements of the reserve for replacement account as specified by the regulatory agreement. Effect or Potential Effect The replacement reserve account was underfunded in the current fiscal year by $3,505. Auditor Noncompliance Code N Reserve for replacements deposits Reporting Views of Responsible Officials Management agrees with the finding as reported. Management has instituted procedural changes to ensure that all required deposits are made monthly. Additionally, management has taken steps to deposit all delinquent deposits. Context During testing of required deposits to the reserve for replacement account, it was noted the Organization only made 6 of the required 10 monthly deposits, as well as 3 irregular deposits, causing the account to be underfunded by $3,505. Recommendation All required deposits should be made in accordance with the regulatory agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations Management should make the required reserve for replacements deposits in the current fiscal year. Response Indicator Agree Completion Date December 31, 2023 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 Title and CFDA Number of Federal Program 14.181 U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) Finding Resolution Status In Process Information on Universe and Population Size Population includes prior year surplus cash to be desposited into the residual receipts account. Sample Size Information N/A Population includes all prior year surplus cash to be deposited into the residual receipts account. Identification of Repeat Finding and Finding Reference Number 2021 001 Criteria The Organization should deposit surplus cash within 90 days of year end, as required by HUD and as stated in the FRAC Guide. Statement of Condition During 2021, the Organization deposited $491 of the required $2,491 due to the residual receipts account 119 days after year end, which was not within the required 90 days per the FRAG Guide. Additionally, the underfunded balance of $2,000 has not been deposited into the account as of December 31, 2022. Cause The Organization failed to monitor the cash requirements of the residual receipts account, as specified by HUD. Effect or Potential Effect The residual receipts account was not funded as specified by HUD resulting in an underfunding of $2,000. Auditor Noncompliance Code B Failure to make required residual receipt deposits Reporting Views of Responsible Officials Management agrees with the finding as reported. Context During testing of the residual receipts deposits, it was noted that the property did not make the full prior year surplus cash deposit within 90 days of year end, as required by HUD. Recommendation Management should ensure the full amount of surplus cash is deposited within 90 days of year end per the December 31, 2020 surplus cash calculation, as required by HUD. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations Management agrees with the finding and recommendation as reported. Response Indicator Agree
Finding Type Significant deficiency in internal control over compliance Title and CFDA Number of Federal Program 14.181 U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811). Finding Resolution Status In Process Information on Universe and Population Size The population includes all required deposits to the replacement reserve for fiscal year 2022. Sample Size Information N/A Identification of Repeat Finding and Finding Reference Number N/A Criteria The Organization should have made 2 monthly deposits of $3,505 and 10 monthly deposits of $3,586 into the reserve for replacements account as required by the regulatory agreement. Statement of Condition The Organization failed to make the required reserve for replacements deposits in the current fiscal year. Cause The Organization failed to monitor the cash requirements of the reserve for replacement account as specified by the regulatory agreement. Effect or Potential Effect The replacement reserve account was underfunded in the current fiscal year by $3,505. Auditor Noncompliance Code N Reserve for replacements deposits Reporting Views of Responsible Officials Management agrees with the finding as reported. Management has instituted procedural changes to ensure that all required deposits are made monthly. Additionally, management has taken steps to deposit all delinquent deposits. Context During testing of required deposits to the reserve for replacement account, it was noted the Organization only made 6 of the required 10 monthly deposits, as well as 3 irregular deposits, causing the account to be underfunded by $3,505. Recommendation All required deposits should be made in accordance with the regulatory agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations Management should make the required reserve for replacements deposits in the current fiscal year. Response Indicator Agree Completion Date December 31, 2023 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 Title and CFDA Number of Federal Program 14.181 U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) Finding Resolution Status In Process Information on Universe and Population Size Population includes prior year surplus cash to be desposited into the residual receipts account. Sample Size Information N/A Population includes all prior year surplus cash to be deposited into the residual receipts account. Identification of Repeat Finding and Finding Reference Number 2021 001 Criteria The Organization should deposit surplus cash within 90 days of year end, as required by HUD and as stated in the FRAC Guide. Statement of Condition During 2021, the Organization deposited $491 of the required $2,491 due to the residual receipts account 119 days after year end, which was not within the required 90 days per the FRAG Guide. Additionally, the underfunded balance of $2,000 has not been deposited into the account as of December 31, 2022. Cause The Organization failed to monitor the cash requirements of the residual receipts account, as specified by HUD. Effect or Potential Effect The residual receipts account was not funded as specified by HUD resulting in an underfunding of $2,000. Auditor Noncompliance Code B Failure to make required residual receipt deposits Reporting Views of Responsible Officials Management agrees with the finding as reported. Context During testing of the residual receipts deposits, it was noted that the property did not make the full prior year surplus cash deposit within 90 days of year end, as required by HUD. Recommendation Management should ensure the full amount of surplus cash is deposited within 90 days of year end per the December 31, 2020 surplus cash calculation, as required by HUD. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations Management agrees with the finding and recommendation as reported. Response Indicator Agree