Finding 392588 (2023-001)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-04-08

AI Summary

  • Core Issue: The Company failed to display the required equal housing opportunity logo in a commercial advertisement.
  • Impacted Requirements: This oversight violates HUD regulations regarding marketing materials.
  • Recommended Follow-Up: Correct existing materials and ensure future marketing includes the equal housing opportunity logo.

Finding Text

Section III – Findings and Questioned Costs for Federal Awards Finding No. 2023-001, ALN 14.155 Equal Housing Opportunity Logo Criteria: HUD requires that the HUD-approved equal housing opportunity logo, slogan or statement be displayed on all marketing materials released to the public. Condition: The Company used a commercial advertisement during the year ended December 31, 2023, which did not include the equal housing opportunity logo, slogan or statement as required. Cause: Oversight controls, when marketing materials were originally produced by the Company, were not operating properly to ensure compliance with HUD standards. Effect: Failure to include the equal housing opportunity logo, slogan or statement may be perceived as an indication of discriminatory housing practices. Auditor’s Recommendation: We recommend that all current marketing materials without the equal housing opportunity logo be corrected and any future materials produced include the equal housing opportunity logo. Auditee’s Response: Refer to Management's Corrective Action Plan included within this reporting package.

Corrective Action Plan

March 26, 2024 Healthcare Account Executive U.S. Department of Housing and Urban Development 451 7th Street, S.W. Washington, DC 20410 Mississippi Methodist Senior Services, Inc. respectfully submits the following corrective action plan for Lauderdale Senior Services, Inc. (the "Company") for the year ended December 31, 2023. The Correction Plan was necessitated by findings reported by the independent public accounting firm of: HORNE LLP 661 Sunnybrook Road Suite 100 Ridgeland, MS 39157 Current Findings on the Schedule of Findings and Questioned Costs Audit Finding #2023-001 / ALN 14.155 – Equal Housing Opportunity Logo Auditors Recommendation: HORNE recommends that all current marketing materials without the equal housing opportunity logo be corrected, and any future materials produced include the equal housing opportunity logo. Action Taken: To be cost effective, the current video advertisements are run for a period of time and then updated when the commercial run has ended. Controls have been put in place to ensure the logo is placed on all future marketing materials, especially commercial advertisements. Status of Corrective Actions on Findings on the Schedule of Prior Year Audit Schedule of Findings and Questions Costs Audit Finding #2022-001 / ALN 14.155 – Equal Housing Opportunity Logo Action Taken: To be cost effective, the current video advertisements are run for a period of time and then updated when the commercial run has ended. Controls have been put in place to ensure the logo is placed on all future marketing materials, especially commercial advertisements. Should you need anything further or have any questions regarding management's plan of correction response you may contact me at Mississippi Methodist Senor Services, Inc. (662-844-8977) or by email at jim.zuelzke@mss.org. Sincerely, Jim Zuelzke, CFO Mississippi Methodist Senior Services, Inc.

Categories

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 969030 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.31M
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $568,548
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $42