FAC Explorer

Finding 26172 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-07-10
Audit: 23630
Organization: Palestine Gardens North, INC (MO)
Auditor: Welch & Associates LLC

AI Summary

  • Core Issue: The Organization failed to make required monthly deposits into the replacement reserve account for seven months, resulting in non-compliance with regulatory agreements.
  • Impacted Requirements: Monthly deposits of $2,000 were not made, leading to a total questioned cost of $14,056.
  • Recommended Follow-Up: The Organization should deposit the outstanding $14,056 into the reserve account promptly, with a proposed completion date of May 4, 2023.

Finding Text

S3800-010: Finding Reference Number 2022-001 (Significant Deficiency) S3800-011: Program Information Federal Program: Supportive Housing for the Elderly ? Section 202 Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Resolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria The regulatory agreement requires that the Organization deposit $2,000 into the replacement reserve account on a monthly basis. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended December 31, 2022 federal award program, we noted the Organization failed to make required monthly deposits into the reserve for replacement account for seven months. Also, there is an additional shortage of $56 in the reserve for replacement account that was not transferred from the predecessor management company to current management company. S3800-032: Cause The Organization overlooked depositing the required monthly amounts into the reserve for replacement account and the $56 discrepancy is unknown. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement requirement to make monthly deposits into the reserve for replacement account. S3800-035: Auditor Non-Compliance Code N ? Reserve for replacements deposits S3800-040: Questioned Costs $14,056 S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization made five months of deposits into the reserve for replacement account during the year ended December 31, 2022. The Organization was required to make twelve timely, monthly deposits during the year. S3800-080: Recommendation The Organization should deposit $14,056 to the replacement reserve account as soon as possible. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date May 4, 2023 S3800-150: Response See Corrective Action Plan

Corrective Action Plan

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2022 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 ? Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor?s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended December 31, 2022. Finding 2022-001 Responsible Party Name: Ju Chinnery Position: Property Accountant Telephone Number: (816)246-9220 Federal Agency Department of Housing and Urban Development Federal Program Supportive Housing for the Elderly (Section 202) Compliance Requirements N ? Special Tests and Provisions Finding Type Federal Awards Auditee?s Comment on Finding We agree with the auditor?s finding. Corrective Action As of the date of the audit report, we have deposited the shortfall of $14,056 into the reserve for replacement account. Anticipated Completion Date May 4, 2023

Categories

Questioned Costs Special Tests & Provisions Subrecipient Monitoring HUD Housing Programs Reporting Significant Deficiency

Other Findings in this Audit

  • 26173 2022-002
    Significant Deficiency
  • 26174 2022-003
    Significant Deficiency
  • 26175 2022-004
    Material Weakness
  • 602614 2022-001
    Significant Deficiency
  • 602615 2022-002
    Significant Deficiency
  • 602616 2022-003
    Significant Deficiency
  • 602617 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $3.45M
14.195 Section 8 Housing Assistance Payments Program $350,188