Finding 1170178 (2025-005)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2026-01-21

AI Summary

  • Core Issue: Cash surplus was not deposited within the required 60 days after year-end.
  • Impacted Requirements: Guidelines for timely deposit of cash surplus were not followed due to delays in determining the surplus amount.
  • Recommended Follow-Up: Conduct a thorough review of financial records before audits to ensure any cash surplus is identified and deposited on time.

Finding Text

Criteria: Guidelines require that any Cash Surplus be deposited within 60 days subsequent to year end. Condition: Cash Surplus was not deposited within 60 days subsequent to year end. Context: Due to significant adjustments made during the audit, the amount of cash surplus was not readily determinable causing the delay in deposit. Effect: The residual receipts account was not funded withing the 60 days subsequent to year end in accordance with guidelines. Cause: Due to significant adjustments made during the audit, the amount of cash surplus was not readily determinable causing the delay in deposit. Recommendation: We recommend higher level review of books and records prior to performance of the audit to determine whether a cash surplus exists and if so, deposit into the residual receipts account in accordance with the guidelines. Views of Responsible Officials and Planned Corrective Actions: Management agrees. The Accounting Manager and Executive Director for the year ended June 30, 2025 were terminated in October 2025, and the former Executive Director has returned to assist in implementing necessary controls and processes and train property level staff.

Corrective Action Plan

The Accounting Manager and Executive Director for the year ended June 30, 2025 were terminated in October 2025, and the former Executive Director has returned to assist in implementing necessary controls and processes and train property level staff.

Categories

Cash Management HUD Housing Programs

Other Findings in this Audit

  • 1170174 2025-001
    Material Weakness Repeat
  • 1170175 2025-002
    Material Weakness Repeat
  • 1170176 2025-003
    Material Weakness Repeat
  • 1170177 2025-004
    Material Weakness Repeat
  • 1170179 2025-006
    Material Weakness Repeat
  • 1170180 2025-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $761,873
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $500,000
14.191 MULTIFAMILY HOUSING SERVICE COORDINATORS $65,258