Finding 24020 (2022-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-07-26
Audit: 19499
Organization: St. John's Commons, Inc. (MD)

AI Summary

  • Core Issue: Surplus cash deposit was not made within the required 90 days due to management oversight.
  • Impacted Requirements: Regulatory agreement mandates timely deposits of surplus cash into the residual receipts reserve.
  • Recommended Follow-Up: Management should ensure timely deposits in the future and work to finalize audits earlier to allow for compliance.

Finding Text

Finding No. 2022-004 ? Timely Deposit of Surplus Cash Federal Assistance Listing Number Name of Federal Program or Cluster 14.157 Supportive Housing for the Elderly Information on the Universe Population Size One (1) surplus cash deposit. Sample Size Information One (1) surplus cash deposit. Identification of Repeat Finding Reference Number 2017-001 et. seq. Criteria The regulatory agreement requires surplus cash payments to be deposited in the residual receipts reserve within 90 days of the fiscal year end. Statement of Condition The 2017 required surplus cash deposit was not made. Cause The cause of why the deposit was not made is due to management oversight due to change in management personnel positions. Effect or Potential Effect The requirement to deposit surplus cash within 90 days of the fiscal year end was not met. Auditor Non-Compliance Code B ? Failure to make required residual receipts deposits Questioned Costs There were no known questioned costs. Perspective The finding represents an instance of management oversight due to change in management personnel positions. Repeat Finding Yes Recommendations We recommend that management ensures the surplus cash deposit is done timely in the future. Views of Responsible Officials Actions Taken or Planned Auditee agrees with this finding. Our policy has been to make surplus cash deposits after the final audit has been issued. Going forward our focus will be to work with the auditor and owner to get the audits finalized earlier so adequate time is left for the deposits to be made. In instances where the final is not going to be issued and allow enough time, the deposit will be made based on the reviewed draft.

Corrective Action Plan

Finding 2022-004 ? Timely Deposit of Surplus Cash A. Comments on Finding and Recommendations Recommendation ? We recommend that management ensures the surplus cash deposit is done timely in the future. B. Actions Taken or Planned Auditee agrees with this finding. Our policy has been to make surplus cash deposits after the final audit has been issued. Going forward our focus will be to work with the auditor and owner to get the audits finalized earlier so adequate time is left for the deposits to be made. In instances where the final is not going to be issued and allow enough time, the deposit will be made based on the reviewed draft. C. Status of Corrective Action on Prior Findings Finding 2017-001 et seq. remains uncleared.

Categories

Cash Management HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 24017 2022-001
    Significant Deficiency Repeat
  • 24018 2022-002
    Material Weakness Repeat
  • 24019 2022-003
    Material Weakness Repeat
  • 24021 2022-005
    Significant Deficiency Repeat
  • 24022 2022-006
    Material Weakness
  • 600459 2022-001
    Significant Deficiency Repeat
  • 600460 2022-002
    Material Weakness Repeat
  • 600461 2022-003
    Material Weakness Repeat
  • 600462 2022-004
    Material Weakness Repeat
  • 600463 2022-005
    Significant Deficiency Repeat
  • 600464 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly Capital Advance Program $5.80M
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract $173,609