Finding 24967 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-05

AI Summary

  • Core Issue: Shady Park Place failed to deposit surplus cash into the residual receipts account within the required 90-day timeframe after year-end.
  • Impacted Requirements: Internal controls must ensure timely deposits as mandated by HUD regulations.
  • Recommended Follow-Up: Implement procedures to guarantee that surplus cash deposits are made on time moving forward.

Finding Text

Finding 2022-001 United States Department of Housing and Urban Development (HUD) Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Program ALN 14.155 Special Tests and Provisions Condition: PCM Senior Housing, Inc. d/b/a Shady Park Place (Property) surplus cash calculation for the year ended December 31, 2021 resulted in a deposit due to the residual receipts account within 90 days following year end. The Property did not have controls in place to ensure the required surplus cash deposit was made within the required timeframe. Criteria: Internal controls must ensure that surplus cash be deposited in the residual receipts account within 90 days following year-end as required by HUD. Cause: The Property did not have internal controls in place to ensure the required surplus cash deposit was made within the required timeframe. Effect: As a result of the funds not being deposited, the residual receipts account was not adequately funded as of December 31, 2022. Questioned Costs: N/A Recommendation: Procedures should be implemented to ensure the Property makes the required deposits to its residual receipts account within the 90 days following year end. Views of Responsible Officials: Management agrees with the finding; see separate Corrective Action Plan.

Corrective Action Plan

CORRECTIVE ACTION PLAN March 31, 2023 United States Department of Housing and Urban Development PCM Senior Housing, Inc. d/b/a Shady Park Place, respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Maher Duessel, CPA?s 503 Martindale Street, Suite 600 Pittsburgh, PA 15212 Audit period: January 1, 2022 ? December 31, 2022 The finding from the December 31, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS?FINANCIAL STATEMENT AUDIT No matters were reported FINDINGS? FEDERAL AWARD PROGRAMS AUDITS Finding 2022-001 Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Program ALN Number 14.155 Recommendation: Procedures should be implemented to ensure the Property makes the required deposits to its residual receipts account within the 90 days following year end. Action taken: Diana Bobak, Director of Finance will double check all audit requests for residual receipt deposits 60 days after the financials are issued with all staff. If the Department of Housing and Urban Development has questions regarding this plan, please call Diana Bobak at 412-349-3942. Sincerely yours, Diana Bobak Director of Finance Brandywine Agency, Inc.

Categories

HUD Housing Programs Procurement, Suspension & Debarment Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 601409 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.83M
14.195 Section 8 Housing Assistance Payments Program $375,052