FAC Explorer

Finding 386520 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-27
Audit: 298828
Organization: St. Giles Manor, Inc. (AL)
Auditor: Browder & Associates PC

AI Summary

  • Answer: Management made an unauthorized transfer of $115,265 from a property reserve to the operating account.
  • Trend: This action reflects a pattern of non-compliance with HUD approval processes.
  • List: Follow up by reviewing all recent transfers for compliance and ensure proper approval protocols are established.

Finding Text

Management transferred $115,265 from a property held reserve to the operating account without HUD approval. This was a duplicate withdrawal.

Corrective Action Plan

SPM has hired a new Director of Treasury with responsibility for this activity. Additionally, SPM is investigating moving these funds to the lender held reserve account to avoid this issue in the future and eliminate the impact to the financial statement.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 386519 2023-001
    Significant Deficiency
  • 386521 2023-003
    Significant Deficiency
  • 962961 2023-001
    Significant Deficiency
  • 962962 2023-002
    Significant Deficiency
  • 962963 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.135 Mortgage Insurance_rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate $4.15M
14.195 Section 8 Housing Assistance Payments Program $1.37M