Finding 34291 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-30

AI Summary

  • Core Issue: A required deposit of $2,234 into the Residual Receipts account was not made on time due to management oversight.
  • Impacted Requirements: Compliance with the HUD Regulatory Agreement, specifically the 90-day deposit rule for Surplus Cash.
  • Recommended Follow-Up: Implement a compliance checklist with deadlines for regular review to prevent future oversights.

Finding Text

FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2022-001 US Department of Housing and Urban Development Section 207/223(f) Mortgage Insurance Program Principal, CFDA 14.134. Criteria: The Regulatory Agreement with HUD states that Surplus Cash is to be deposited into the Residual Receipts account within 90 days of the fiscal year end. Condition: The required deposit of $2,234, per the December 31, 2021 Computation of Surplus Cash was not deposited into the Residual Receipts account in a timely manner. Cause: Managing Agent was unaware that compliance requirement was not being met as the intention was to offset HAP vouchers instead of making the deposit. Effect: Noncompliance with any part of the regulatory agreement may cause HUD to terminate assistance to the property. Perspective Information: This finding represents an isolated incident of management oversight of compliance requirements. Recommendation: We recommend that management implements a checklist of all compliance requirements, with applicable deadlines, that would be reviewed by appropriate individuals regularly, to ensure requirements are being met in a timely manner. Views of Responsible Officials: Management agrees with the finding and the auditor's recommendation. The required deposit was made on April 7, 2023. No further action required.

Corrective Action Plan

CORRECTIVE ACTION PLAN April 07, 2023 St. Matthews Housing Development, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of public accounting firm: Capaldi Reynolds & Pelosi 332 Tilton Road Northfield, NJ 08225 Audit period: January 1, 2022 to December 31, 2022. Contact name: Derek Pew, Managing Agent. Contact phone number: 609-646-8861 The finding from the December 31, 2022 schedule of findings and questioned costs are discussed below. FINDINGS ? FEDERAL AWARD PROGRAMS AUDITS 2022-001: The required deposit of $2,234, per the December 31, 2021 Computation of Surplus Cash was not deposited into the Residual Receipts account within 90 days after the fiscal year end. It is recommended that management implements a checklist t of all compliance requirements with its applicable deadlines that would be reviewed by appropriate individuals regularly to ensure requirements are being met in a timely manner. Action(s) taken or planned on the finding: The Executive Board and management agree with the finding and the auditor?s recommendation. We have implemented policies and procedures to ensure compliance requirements are being met in a timely manner. The required deposit to the Residual Receipts account was made on April 7, 2023. No further action required.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 610733 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.134 Mortgage Insurance_rental Housing $4.57M
14.871 Section 8 Housing Choice Vouchers $707,272