Finding 30967 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-10-19

AI Summary

  • Core Issue: The Corporation did not meet the required monthly deposit of $1,887, contributing only $1,841.
  • Impacted Requirements: This underfunding affects the reserve for replacement account, which is crucial for future maintenance and repairs.
  • Recommended Follow-Up: Implement procedures to ensure all required deposits are made consistently moving forward.

Finding Text

Finding 2022-001 - Required Monthly Deposits to the Reserve for Replacement Assistance Listing Number: 14.195 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: Not applicable Federal Award Year: July 1, 2021 - June 30, 2022 Pass-Through Entity: Not applicable Criteria: The Corporation is required to make a monthly deposit of $1,887 to the reserve for replacement account. Questioned Cost: None. Condition/Context: The Corporation made monthly deposits of $1,841. Our population included all monthly deposits. Our sample included all months. Effect: The reserve for replacement account was underfunded. Cause: Lack of management oversight. Recommendation: The Corporation should have procedures in place to ensure all required monthly deposits are made. Views of Responsible Officials and Planned Corrective Actions: The Corporation agrees with the finding and made a deposit into the reserve for replacement for the deficiency on September 20, 2022.

Corrective Action Plan

U.S. Department of Housing and Urban Development Lake Anne Fellowship House, Section II FHA Project No. 000-005-NI respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Baker Tilly U.S., LLP 1570 Fruitville Pike, Lancaster, PA 17601 Audit period: Year Ending June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINANCIAL STATEMENT FINDINGS None Noted FEDERAL AWARD FINDINGS Finding 2022-001 ? Required Monthly Deposits to the Reserve for Replacement Recommendation: The Corporation should have procedures in place to ensure all required monthly deposits are made. Action Taken: $782.00 shortfall of deposits was funded. Going forward, annually management will verify with ownership monthly deposit required. Anticipated Completion Date: September 22, 2022, the date the Corporation made the underfunded deposit. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Christy Zeitz, CEO at (571) 349-0055.

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 607409 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.195 Section 8 Housing Assistance Payments Program $1.52M
14.195 Covid-19 Supplemental Payments $4,634