Finding 36252 (2022-002)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2022

Accepted

2022-10-30

Audit: 32328

Organization: Shalom II Housing, Inc. (RI)

Auditor: Kahn Litwin Renza & CO LTD

AI Summary

Core Issue: Significant deficiencies in internal controls were identified, although no material weaknesses were found.
Impacted Requirements: Compliance with federal regulations was met, with no noncompliance issues noted in financial statements or major programs.
Recommended Follow-up: Address the identified significant deficiencies to strengthen internal controls and ensure ongoing compliance.

Finding Text

SECTION I ? SUMMARY OF AUDITORS? RESULTS Financial Statements Type of auditors' report issued: unmodified Internal control over financial reporting: ? Material weaknesses identified? yes X no ? Significant deficiencies identified that are not considered to be material weaknesses? X yes none reported ? Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major programs: ? Material weaknesses identified? yes X no ? Significant deficiencies identified that are not considered to be material weaknesses? yes X none reported Type of auditors' report issued on compliance for major programs: unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR Section 200.516(a)? yes X no Identification of major federal program: Assistance Listing Number Name of Federal Program 14.157 Supportive Housing for the Elderly Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee yes X no

Corrective Action Plan

Finding 2022-002: Late Residual Receipt Payment Auditee?s Response: Shalom II Housing, Inc. (the Organization) is in agreement with the finding and the recommendation. During 2021, the Organization did on review their surplus cash calculation on a regular basis, resulting in a late deposit. Subsequently, the Organization deposited $13,939 to their residual receipts account. Planned Corrective Action Plan: The Organization will deposit $13,939 to their residual receipts account. Name of Responsible Person: Renee St. John, Chief Financial Officer Name of Department Contact: Renee St. John, Chief Financial Officer Current Status: In Progress. Management is working on depositing the necessary funds into their residual receipts account. In addition, management is working on developing a procedure to calculate surplus cash on a monthly basis to ensure surplus cash is properly calculated. This is expected to be completed during fiscal year 2023.

Other Findings in this Audit

612694 2022-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.157	Supportive Housing for the Elderly	$264,572