Finding 1039 (2023-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2023

Accepted

2023-11-01

Audit: 1993

Organization: St. Francis Apartments, Inc. (ME)

Auditor: Otis Atwell

AI Summary

Issue: The required deposit of surplus cash to the residual receipts account was not made for five consecutive fiscal years.
Impact: This oversight led to an underfunding of the residual receipts account by $22,643.
Recommendation: Ensure timely deposits are made moving forward to avoid further underfunding.

Finding Text

We concur that the required deposit of surplus cash to the residual receipts account that should have been made in FY 2019 was not made in either FY 2019, FY 2020, FY 2021, FY 2022 or FY 2023, resulting in underfunding of the residual receipts account of $22,643.

Corrective Action Plan

The project had insufficient cash to make the required deposit. Management is in consultation with the HUD representative for an acceptable solution.

Other Findings in this Audit

577481 2023-001

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.157	Supportive Housing for the Elderly	$6.49M