Finding 380548 (2023-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-03-15

Audit: 295334

Organization: River Kourt Apartments (OR)

Auditor: Jones & Roth PC

AI Summary

Core Issue: The annual audit for River Kourt Apartments was not submitted to HUD by the required deadline.
Impacted Requirements: Compliance with HUD's reporting standards, specifically the 90-day submission rule for audited financial statements.
Recommended Follow-Up: Management should establish internal controls to ensure timely completion and submission of audits to HUD.

Finding Text

Finding 2023-002 Type of Finding: Significant deficiency in internal control over compliance and immaterial noncompliance. Federal program: HUD Supportive Housing for Persons with Disabilities (Assistance Listing #14.181) Compliance Requirement: Reporting Criteria: River Kourt Apartments’ regulatory agreement with HUD and the HUD Uniform Financial Reporting Standards (24 CFR §5.801) require audited financial statements to be submitted to HUD within 90 days of the fiscal year end. HUD may authorize an extension to the 90 day due date. Condition: The annual audit for the fiscal year ended June 30, 2022 was not submitted by the due date as required by HUD. Cause: The audit was not completed within the applicable time frame, so it was not available to be submitted to HUD by the due date. Effect: The effect is immaterial non-compliance with the terms of the HUD program listed above. Questioned Costs: None. Repeat Finding: No. Context: Not applicable. Recommendation: We recommend management design and implement internal controls over compliance to ensure the audit is completed timely and submitted to HUD as required. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.

Corrective Action Plan

Management’s Response and Planned Corrective Actions: 1. The corrective action planned: a. ShelterCare, as managing agent, has hired a new property accountant which should help with keeping the books current and ShelterCare prepared to start audit work mid-July and be ready to submit the audit to HUD within 90 days of the fiscal year end. 2. The name of the contact person(s) responsible for the corrective action a. Kathleen Broadhurst, Sr. Director of Finance, ShelterCare 3. The anticipated completion date: a. New property accountant was hired in August of 2023.

Other Findings in this Audit

380547 2023-001

Material Weakness Repeat
380549 2023-003

Significant Deficiency Repeat
956989 2023-001

Material Weakness Repeat
956990 2023-002

Significant Deficiency
956991 2023-003

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.181	Supportive Housing for Persons with Disabilities	$1.17M