Finding 1227159 (2025-001)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-08-18
Audit: 409332
Auditor: M GROUP LLP

AI Summary

  • Issue: The Company failed to deposit $120 in excess rent into the required residual receipt account, violating HUD regulations.
  • Trend: This is a one-time oversight, not a recurring issue.
  • Follow-up: Ensure the $120 is deposited and review the regulatory agreement for future compliance.

Finding Text

Section III – Federal Awards Findings Type of Finding: Other Matter Finding #2025-001: Section 202 Capital Advance, Assistance Listing 14.157 Condition: Under terms of the HUD regulatory agreement, the Company is required to deposit excess rent into the residual receipt account. The Company did not deposit excess rent of $120. Criteria: The HUD regulatory agreement requires the Company to deposits excess rent into the residual receipt account. Effect: The Company is in violation of its Regulatory Agreement. Questioned Cost: $120 Repeat Finding: No Cause: Oversight Recommendation: We recommend the Company deposit $120 into the residual receipts account. Further, we recommend the Company review the regulatory agreement to ensure compliance. Auditor’s Comment: During March 2026, the Company deposited $120 into the residual receipts account. Finding 2025-001 Cleared.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: Cliff View Village II, Inc. No. 112-EE040 Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2025 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 1: Section 202 Capital Advance, CFDA 14:157 CORRECTIVE ACTION COMPLETED: During March 2026 the Company deposited the delinquent payment of $120 into the residual receipts account for excess rent. 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. Becca Riebesell, Vice President, Asset Living.

Categories

HUD Housing Programs Cash Management

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $1.65M