Finding 30783 (2022-001)

Material Weakness

Requirement

Questioned Costs

Year

2022

Accepted

2022-11-08

Audit: 26780

Organization: Saint Elizabeth Manor, Inc. (CT)

Auditor: Cohnreznick LLP

AI Summary

Core Issue: The organization failed to deposit $65,729 in residual receipts within the required 90 days after year-end.
Impacted Requirements: This noncompliance with the regulatory agreement affects the organization's standing and financial management.
Recommended Follow-Up: Management should implement internal controls to ensure timely deposits of residual receipts in the future.

Finding Text

Department of Housing and Urban Development Finding No. 2022-001; Federal Assistance Listing Number 14.134, Mortgage Insurance ? Rental Housing Criteria Residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended June 30, 2022, management did not make the required residual receipt reserve deposit in the amount of $65,729 within 90 days of year end, as required by the regulatory agreement. The residual receipts amount was deposited on November 12, 2021. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Organization is not in compliance with the requirements of the regulatory agreement. Questioned Costs None Context The error was made in the surplus cash required to be deposited within 90 days of year end. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B ? Failure to make required residual receipts deposits Views of Responsible Officials Management will review the property's surplus calculation closer to year end to determine if there is surplus cash, management will deposit funds into the residual receipts account in a timely manner.

Corrective Action Plan

CP-1011 CORRECTIVE ACTION PLAN Project Legal Name: Saint Elizabeth Manor HUD Project No.: 017?EH120 Audit Firm: CohnReznick Period covered by the audit: year ended 6/30/2022 Corrective Action Plan prepared by: Name:Jonathan Ramsay Position: Chief Financial Officer Telephone Number: 860-342-2224 The following is a recommended format to be followed by the auditee for preparing a corrective action plan: A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2022-001 a. Comments on the Finding and Each Recommendation Management agrees with the finding and the recommendations by the auditors. b. Action(s) Taken or Planned on the Finding Management will review the properties Surplus Calculation closer to year end to determine if there is Surplus Cash. If it is determined that there is Surplus Cash, management will deposit funds into the Residual Receipts account in a timely manner.

Other Findings in this Audit

607225 2022-001

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
14.134	Mortgage Insurance_rental Housing	$4.12M
14.195	Section 8 Housing Assistance Payments Program	$670,290