FAC Explorer

Finding 20525 (2022-004)

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Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-28
Audit: 20203
Organization: Cumberland Senior Housing Associates (PA)
Auditor: Smith Elliott Kearns & Company LLC

AI Summary

  • Core Issue: Cumberland Senior Housing Associates failed to make timely payments on the Rural Rental Housing Loan, affecting compliance.
  • Impacted Requirements: Loan payments and reserve account funding were not completed as required, with five months of payments and six months of funding made.
  • Recommended Follow-Up: Ensure timely completion of tenant certifications to facilitate on-time loan payments and reserve funding.

Finding Text

Criteria: Payments are to occur timely on the Rural Rental Housing Loan to satisfy the principal balance and to fund the reserve account. Condition/Context: During the year ended five (5) months of loan payments were made and six (6) months of funding to the reserve account occurred. Cause: Due to not completing the tenant certification process timely. Effect: Cumberland Senior Housing Associates is out of compliance with the loan program. Questioned Costs: None Repeat Finding: Not a repeat finding. Recommendation: We recommend the certification be completed timely and the loan principal payments and funding of the reserve account be completed timely.

Corrective Action Plan

The Authority has multiple staff with access to MINC to ensure timely entry. The Authority implemented a series of checks and balances with respect to the process of entering information, including internal checklists and additional staff that review checklists to meet compliance.

Categories

Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $790,573
10.427 Rural Rental Assistance Payments $97,117