FAC Explorer

Finding 386099 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-03-27
Audit: 298479
Organization: Sheltering Arms Housing Corporation (MO)
Auditor: Welch & Associates LLC

AI Summary

  • Core Issue: The Organization failed to make required monthly deposits of $720 into the replacement reserve account from January to June 2023, totaling $4,320.
  • Impacted Requirements: This non-compliance violates the regulatory agreement outlined in HUD Form-9250.
  • Recommended Follow-Up: Implement a monthly reconciliation process for the replacement reserve to ensure timely identification of any missed deposits.

Finding Text

S3800-010: Finding Reference Number 2023-001 (Significant Deficiency) S3800-011: Program Information Federal Program: Supportive Housing for Persons with Disabilities - Section 811 Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing #: 14.181 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Resolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria HUD Form-9250, Funds Authorizations, and the regulatory agreement requires the Organization to deposit $720 into the replacement reserve account on a monthly basis. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended June 30, 2023 federal award program, we noted the Organization failed to make the required monthly deposit of $720 into the reserve for replacement account from January to June 2023. S3800-032: Cause The Organization failed to deposit the required monthly amount into the reserve for replacement account for January to June 2023. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement to make required monthly deposits into the reserve for replacement account. S3800-035: Auditor Non-Compliance Code N – Reserve for replacements deposits S3800-040: Questioned Costs $4,320 S3800-045: Reporting Views of Responsible Officials Management agrees with the auditor’s finding. S3800-050: Context The Organization missed depositing $4,320 into the reserve for replacement account for July – December during the year ended June 30, 2023. The deposit was made in July 2023. S3800-080: Recommendation The Organization should ensure the process to reconcile replacement reserve on a monthly basis is being followed so that missing deposit is identified on a timely basis. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date July 2023 S3800-150: Response See Corrective Action Plan

Corrective Action Plan

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2023 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor’s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended June 30, 2023. Finding 2023-001 Responsible Party Name: Amy Spaeth Position: Co-CEO – Management Agent Telephone Number: 816-236-2435 Federal Agency U.S. Department of Housing and Urban Development Federal Program Supportive Housing for Persons with Disabilities (Section 811) Compliance Requirements N – Special Tests and Provisions Finding Type Federal Awards Auditee’s Comment on Finding We agree with the auditor’s finding. Corrective Action We have deposited the shortfall of $4,320 into the reserve for replacement account in July 2023. We will follow our process to deposit and reconcile the reserve for replacement account on a monthly basis. Anticipated Completion Date N/A

Categories

Questioned Costs HUD Housing Programs Reporting Significant Deficiency Special Tests & Provisions

Other Findings in this Audit

  • 962541 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $1.60M
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $64,360