Finding 29916 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-27
Audit: 32874
Organization: Northwest Estates 811 (WA)

AI Summary

  • Core Issue: The Organization failed to deposit $4,314 in residual receipts within the required 60-day timeframe after year-end.
  • Impacted Requirements: Residual receipts must be deposited in a separate, interest-bearing account to support property operations, as mandated by HUD.
  • Recommended Follow-Up: Ensure timely funding of the residual receipts account moving forward, as acknowledged in the management's corrective action plan.

Finding Text

2022 ? 001 Required Reserve Deposits CFDA Numbers Name of Federal Program 14.181 HUD - Section 811, Supportive Housing for Disabled Persons Finding: The Organization did not deposit the residual receipts amount due for the year ending December 31, 2021 within 60 days. Repeat Finding: Not a repeat finding from 2021 Criteria: The Organization is required to deposit residual receipts within 60 days after year-end in a separate, interest bearing account. The funds can be used for the operating needs of the property, including debt service, with the prior written approval of HUD. Condition, context and cause: The Surplus Cash computation prepared as of December 31, 2021 determined there was $4,314 of Surplus Cash and a deposit of this amount was due to the Residual Receipts account within 60 days. A partial deposit of $27 was made to the Residual Receipts account in April 2022. Sample size and population: Sampling was not applicable to this finding. Effect: The Organization did not comply with the Residual Receipts deposit requirements. Recommendation: We recommend the Organization fund the residual receipts accounts as required. Questioned Costs: N/A Management Response and Corrective Action Plan: We understand the auditors? finding and will monitor residual receipts deposits so they are made within 60 days of year end as required. Contact Person: Tom Anderson

Corrective Action Plan

The following is management's response and corrective action plan for the audit findings identified in the audit reporting package for the year ending December 31, 2022. 2022-001 - Required Reserve Deposits We agree with the finding - the deposit to residual receipts for December 31, 2022 was not made by the HUD required due date of being made within 60 days after year-end. We understand the auditor's findings and have taken steps to correct the issues identified. The deposit was not made within the required timeframe, a partial payment was made in April 2022.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 29917 2022-001
    Material Weakness
  • 606358 2022-001
    Material Weakness
  • 606359 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $579,923
14.181 Supportive Housing for Persons with Disabilities $52,718