Finding 24240 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-10-23

AI Summary

  • Core Issue: Internal controls failed to ensure surplus cash was deposited into the residual receipts account within the required ninety days after year-end.
  • Impacted Requirements: Noncompliance with federal guidelines for timely deposit of surplus cash.
  • Recommended Follow-Up: Implement procedures to guarantee timely deposits of surplus cash moving forward.

Finding Text

Section III - Federal Award Findings and Questioned Costs N. Special tests and provisions Finding 2022-001 CFDA: 14.157 Section 202 Direct Loan Criteria: Internal controls over compliance should be in place to ensure the deposit of surplus cash amounts into the residual receipts account occurs within ninety days after year end. Condition: A deficiency in internal control over compliance existed due to the prior year excess surplus cash amount not being deposited into the residual receipts account withing ninety days after the end of the annual fiscal period for which the surplus cash was calculated. Cause: The Project was not aware of the requirement. Effect: This deficiency resulted in the Project's noncompliance with the required deposit of surplus cash to the residual receipts account. Recommendation: The Project should establish procedures to ensure that surplus cash is deposited within ninety days after the end of the annual fiscal period for which the surplus cash is calculated. Views of Responsible Officials: Management agrees with the finding and will adhere to the auditor's recommendation.

Corrective Action Plan

RE: HELP HOUSING FOR THE DISABLED, INC. 26900 Euclid Avenue Euclid, Ohio 44132 SUBJECT: Corrective Action Plan 042EH430 HELP HOUSING FOR THE DISABLED Reporting Period Ending Date ? June 30, 2022 Finding 2022-001 CFDA: 14.157 Section 202 Direct Loan Criteria: Internal controls over compliance should be in place to ensure the deposit of surplus cash amounts into the residual receipts account occurs within ninety days after year end. Condition: A deficiency in internal control over compliance existed due to the prior year excess surplus cash amount not being deposited into the residual receipts account within ninety days after the end of the annual fiscal period for which the surplus cash was calculated. Recommendation: The Project should establish procedures to ensure that surplus cash is deposited within ninety days after the end of the annual fiscal period for which the surplus cash is calculated. CORRECTIVE ACTION: Management has agreed to implement the process of depositing surplus cash on the day the audited financial statements are issued. Thorough review of financial statement notes and conversations with audit team during the review process will establish the amount of funds to be deposited. Once this internal review is complete and audited statements are issued the internal management team will routinely make the required deposit and follow up by providing payment confirmation to the outside audit team. This accountability confirmation process will ensure that the deposit is made timely and routinely. Any questions regarding this plan should be directed to: Belinda Glavic Grassi MA, CPA Chief Financial Officer Help Housing for the Disabled, Inc. (216) 432-4810

Categories

Special Tests & Provisions Student Financial Aid Cash Management HUD Housing Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $741,341
14.195 Section 8 Housing Assistance Payments Program $219,629