Finding 1156137 (2024-002)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2025-09-29
Audit: 368559
Organization: Sunray Communities, Inc. (TX)
Auditor: M Group LLP

AI Summary

  • Issue: The property management company did not maintain required property insurance from April 2024 to February 2025.
  • Impact: The company was uninsured during this period, which is a significant compliance failure.
  • Follow-up: The property management company should improve its policies to ensure timely renewal of insurance and compliance with requirements.

Finding Text

Finding #2024-002: Supportive Housing for the Elderly, Assistance Listing 14.157 Type of Finding: Material Weakness Condition: The property management company failed to maintain property insurance coverage on the property during 2024. Criteria: The Company is required to maintain property insurance. Effect: The Company was uninsured from April 2024 through February 2025 Questioned Cost: N/A Cause: New property management company failed to renew property insurance Repeat Finding: No Recommendation: The Property management company should review policies and procedures to ensure compliance with requirements and to ensure property is properly insured. Auditor’s Comment: The property management company has obtained property insurance effective March 2025. Finding 2024-002 cleared.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: Sunray Communities, Inc. No. 112-EE003 Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2024 Compliance Review A. Comments on Findings and Recommendations We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. Actions Taken FINDING 2024-002: Supportive Housing for the Elderly, Assistance Listing 14.157 CORRECTIVE ACTION COMPLETED: The property management company obtained property insurance effective March 2025. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Ms. Natalie Bastien, Vice President, RPM Living.

Categories

Material Weakness

Other Findings in this Audit

  • 1156136 2024-001
    Material Weakness Repeat
  • 1156138 2024-003
    Material Weakness Repeat
  • 1156139 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $186,766