Finding Text
Finding Type: - Significant deficiency in internal control over financial reporting - Immaterial noncompliance with major program requirements -Significant deficiency in internal control over compliance Title and Assistance Listing Number of Federal Program - 14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract and Capital Advance Finding Resolution Status - None Information on Universe and Population Size - Expenditures charged to the Organization during the year ended June 30, 2025 Sample Size Information - A sample size of 25 cash disbursements were tested. Identification of Repeat Finding and Finding Reference Number - N/A Criteria - The regulatory agreement with HUD requires that the Organization's cash should only be used to for pay for the Organization's expenses. Statement of Condition - The Organization paid for and expensed an invoice for professional service fees incurred by another project. Cause - The Organization failed to properly charge professional services invoices to the proper project. Effect or Potential Effect - The Organization recognized $7,550 of professional fees related to another project during the year ended June 30, 2025. Auditor Noncompliance Code - H - Unauthorized distribution of project assets Recommendation - The Organization should implement internal controls to ensure the invoice approval process is adequate for professional fees to ensure expenses are charged to the project that incurred the cost. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - The Organization should implement internal controls to ensure expenditures recorded and paid by the Organization are in the name of the Organization. Response Indicator - Agree Completion Date - June 30, 2025 Response - Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls to ensure the invoice approval process is adequate for professional fees to ensure expenses are charged to the project that incurred the cost.