Finding 10085 (2022-001)

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Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-01-25

AI Summary

  • Core Issue: The board of directors is not meeting regularly, which affects their ability to provide proper oversight.
  • Impacted Requirements: Regular meetings are essential for fulfilling fiduciary duties and governance responsibilities.
  • Recommended Follow-Up: Ensure the board schedules and conducts meetings consistently to improve oversight of management and financial transactions.

Finding Text

2022-001 BOARD OVERSIGHT Criteria: Board of directors should convene on a regular basis to fulfill their fiduciary duties and provide governance to the Project. Board of directors should be active and oversee responsibilities of the Project. Condition: During out audit testing, we noted that the board of directors were not holding board meetings regularly. Cause: Board of directors are not meeting on a regular basis. Effect: Board of directors may not be providing sufficient oversight of the management company and the Project’s financial transactions. Questioned Costs: N/A Recommendation: We recommend that the board of directors meet on a regular basis to fulfill their fiduciary duties. Management’s Views and Corrective Action Plan: The board will work to meet on a more regular basis.

Corrective Action Plan

CORRECTIVE ACTION PLAN June 5, 2023 Federal Audit Clearinghouse 1201 East 10th Street Jefferson, Indiana 47132 Bethany Housing Corporation d/b/a Reilly Manor (the Project) respectfully submits the following Corrective Action Plan for the year ended December 31, 2022. Hoyt, Filippetti & Malaghan, LLC 1041 Poquonnock Road Groton, Connecticut 06340 Audit Period: Year ended December 31, 2022 The findings from the December 31, 2022 Schedule of Federal Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. 2022-001 BOARD OVERSIGHT Criteria: Board of directors should convene on a regular basis to fulfill their fiduciary duties and provide governance to the Project. Board of directors should be active and oversee responsibilities of the Project. Condition: During our audit testing, we noted that the board of directors were not holding board meetings regularly. Cause: Board of directors are not meeting on a regular basis. Effect: Board of directors may not be providing sufficient oversight of the management company and the Project’s financial transactions. Questioned Costs: N/A Recommendation: We recommend that the board of directors meet on a regular basis to fulfill their fiduciary duties. Management’s Views and Corrective Action Plan: The board will work to meet on a more regular basis. If you have any questions regarding this plan, please contact Matthew Scibek at 860-398-5425, or matt@westfordmgt.com.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.427 Rural Rental Assistance Payments $145,967
10.415 Rural Rental Housing Loans $29,869