FAC Explorer

Finding 384709 (2023-002)

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Requirement
P
Questioned Costs
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Year
2023
Accepted
2024-03-26
Audit: 297826
Organization: St. Anne Residence (IL)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Issue: Security deposit liabilities exceeded the cash balance in the security deposit account as of June 30, 2023.
  • Requirement: HUD mandates that security deposits must be kept in a separate bank account that matches or exceeds the liabilities.
  • Follow-up: Address employee turnover and staffing issues in accounting to ensure compliance with HUD requirements moving forward.

Finding Text

Type of Finding: Other Matter. Condition: Duringthe year ended June 30, 2023, the security deposit liabiliteis exceded the balance of the security deposit cash account. Criteria or Specific Requirement: HUD requires that security deposits be maintained in a separate bank account which is equal to or greater than the amount of security depoist liabilities. Cause: Employee turnover and staff shortages in the accounting department. Effect: The Project is not in compliance with HUD requirements. Repeat Finding: No

Corrective Action Plan

U.S. Department of Housing and Urban Development 2023-002 Supportive Housing for the Elderly– CFDA No. 14.157 Recommendation: We recommend management compare the security deposit cash account to the security deposit liability account on a regular basis as well as when a move-in or move-out occurs. Explanation of disagreement with audit finding: There is no disagreemet with the finding. Management will closely monitor the security deposit balances to ensure they maintain compliance with the regulatory agreement. Name(s) of the contact person(s) responsible for corrective action: Margaret Perine Planned completion date for corrective action plan: In process

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $3.10M
14.195 Section 8 Housing Assistance Payments Program $231,239