Finding 1222468 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-30

AI Summary

  • Answer: The Project did not meet its annual funding obligation of $9,912 for the replacement reserve account.
  • Trend: This failure to fund may indicate ongoing financial management issues that could affect future project sustainability.
  • List: Follow up by reviewing financial practices, ensuring compliance with funding requirements, and developing a plan to address the shortfall.

Finding Text

The Project failed to fund the yearly requirement of $9,912 into the replacement reserve account.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name of auditee: Bellflower Oak Street Manor Name of audit firm: Propp Christensen Caniglia LLP Period covered by the audit: October 1, 2024 through September 30, 2025 CAP prepared by: Name: Sean Calendar Position: Director of Accounting Telephone: (916) 357-5300 Comments: Management agrees with the 2025-001 – 2025-003 findings. Actions: Management has agreed to enhance processes, controls, and personnel training under the newly engaged property management company to ensure ongoing compliance with HUD regulations. Additionally, management has agreed to deposit $9,912 into the replacement reserve account to fully fund the current-year requirement and transfer $44,273 into the residual receipts account to address the 2024 surplus cash requirement.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1222469 2025-002
    Material Weakness Repeat
  • 1222470 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $118,375