Finding 1156139 (2024-004)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
$1
Year
2024
Accepted
2025-09-29
Audit: 368559
Organization: Sunray Communities, Inc. (TX)
Auditor: M Group LLP

AI Summary

  • Core Issue: The Company closed the residual receipts account, violating HUD regulations.
  • Impacted Requirements: HUD requires the maintenance of a residual receipts account.
  • Recommended Follow-Up: Re-open the account and deposit $595, along with an additional $3,038 in surplus cash.

Finding Text

Finding #2024-004: Supportive Housing for the Elderly, Assistance Listing 14.157 Type of Finding: Significant deficiency Condition: The Company closed the residual receipts account during 2024. Criteria: The HUD regulatory agreement requires the Company to maintain a residual receipts account. Effect: The Company closed the residual receipts account and is in violation of the HUD regulatory agreement. Questioned Cost: $595 Cause: New property management company Repeat Finding: No Recommendation: The Company should re-open the residual receipts account and deposit $595 into the residual receipts account. Auditor’s Comment: The Company plans to open the residual receipt account and deposit $595 and deposit the surplus cash of $3,038.

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 2024-004: Supportive Housing for the Elderly, Assistance Listing 14.157 CORRECTIVE ACTION COMPLETED: The Company opened a residual receipt account and plans to deposit $3,633. 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

Questioned Costs HUD Housing Programs Cash Management Significant Deficiency

Other Findings in this Audit

  • 1156136 2024-001
    Material Weakness Repeat
  • 1156137 2024-002
    Material Weakness Repeat
  • 1156138 2024-003
    Material Weakness Repeat

Programs in Audit

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