Finding 37257 (2022-001)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-09-24

AI Summary

  • Core Issue: The Project failed to deposit $14,079 in surplus cash into a required residual receipts account by December 31, 2021.
  • Impacted Requirements: Compliance with Section 8 regulations mandates timely deposits into the residual receipts account.
  • Recommended Follow-up: Ensure the $14,079 is deposited into the residual receipts account promptly to rectify the issue.

Finding Text

Over the Rainbow Association and Subsidiaries SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED DECEMBER 31, 2022 C. Findings and Questioned Costs - Major Federal Award Programs Audit Questioned Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT For the Hill Housing Facility FINDING 2022-001: SECTION 8, ASSISTANCE LISITNG NUMBER 14.195 Condition: The Project did not deposit surplus cash at December 31, 2021 into a residual receipts account. The amount that should have been deposited was $14,079. Criteria: The Project should have deposited surplus cash at December 31, 2021 into a residual receipts account. Effect: The residual receipts account balance was $14,079 less than it should be at December 31, 2022. Context: Activity in the residual receipts account for the year ended December 31, 2022 was tested. No sample was tested. Questioned Costs $14,079 Cause: The Project did not make the necessary deposit of surplus cash into a residual receipts account. Recommendation: The Project should deposit surplus cash as of December 31, 2021 into a residual receipt account as soon as possible. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will deposit $14,079 into a residual receipts account as soon as possible. Total - Department of Housing and Urban Development $14,079 Non-compliance code - B

Corrective Action Plan

Over the Rainbow Association and Subsidiaries CORRECTIVE ACTION PLANS YEAR ENDED DECEMBER 31, 2022 Over the Rainbow Association and Subsidiaries respectfully submits the following corrective action plans for the year ended December 31, 2022. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit period: December 31, 2022 The findings from the December 31, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT NONE FINDINGS - FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT For the Hill Housing Facility FINDING 2022-001: SECTION 8, ASSISTANCE LISTING NUMBER 14.195 SURPLUS CASH NOT DEPOSITED INTO RESIDUAL RECEIPT ACCOUNT Recommendation: The Project should deposit surplus cash as of December 31, 2021 into a residual receipts account as soon as possible. Action Taken: The Project agrees with the finding. Management will deposit $14,079 into a residual receipts account as soon as possible.

Categories

Questioned Costs HUD Housing Programs Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $15.51M
14.155 Section 223(f) Insured Mortgage $897,915
14.195 Section 8 Housing Assistance Payments Program $832,130
14.181 Supportive Housing for Persons with Disabilities Prac $492,499