Finding 1158133 (2024-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 370060
Organization: Safe Harbor, Inc. (CT)
Auditor: Whittlesey PC

AI Summary

  • Core Issue: The reserve account is underfunded by about $48,000.
  • Impacted Requirements: The reserve account must be fully funded and maintained separately.
  • Recommended Follow-Up: Implement a process to ensure all budgeted transfers to the reserve account are made.

Finding Text

Finding No. 2024-003 – Reserve Account Funding – Other Matter Criteria: The Project’s reserve account must be fully funded and maintained in a separate bank account. Condition: The Project maintained a separate bank account for the reserves, however the account was not fully funded. Effect: The reserve bank account is underfunded by approximately $48,000. Cause: Not all monthly budgeted transfers were made to ensure the account is fully funded. Recommendation: The Project should implement a process to ensure the reserve bank account is fully funded. Reporting Views of Responsible Officials: Management agrees with the finding, see the Corrective Action Plan.

Corrective Action Plan

Unfortunately, the Reserve Account Funding has been a repeated finding and is of concern to Safe Harbor’s Board of Directors. The Board of Directors has communicated to Wildwood Property Management, LLC that it would like to have the reserves fully funded. The Board of Directors will work with Wildwood Property Management, LLC to commit to a schedule to fully fund the reserve.

Categories

Reporting

Other Findings in this Audit

  • 1158134 2024-004
    Material Weakness Repeat
  • 1158135 2024-004
    Material Weakness Repeat
  • 1158136 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.427 Rural Rental Assistance Payments $114,527
10.415 Rural Rental Housing Loans $70,148