Finding 397968 (2023-002)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-05-20

AI Summary

  • Core Issue: Excess residual receipts funds of $2,794 were not remitted to HUD despite receiving approval on June 8, 2022.
  • Impacted Requirements: This delay violates the Consolidated Appropriations Act of 2016 regarding timely remittance of funds.
  • Recommended Follow-Up: Establish internal controls to ensure timely remittance of residual receipts and expedite future payments.

Finding Text

Finding No. 2023-002; Section 202 Supportive Housing for the Elderly, Assistance Listing 14.157 Criteria Excess residual receipts funds should be remitted to HUD upon receipt of HUD approval. Condition The management received HUD approval to remit excess residual receipts funds in the amount of $2,794, on June 8, 2022. The funds have not been remitted to HUD as of June 30, 2023. Cause Controls were not in place to ensure that excess residual receipts funds were timely remitted. Effect or Potential Effect The Organization is not in compliance with the requirements of the Consolidated Appropriations Act of 2016, governing Residual Receipts for PRAC program. Questioned Costs $2,794 Identification as a Repeat Finding This is not a repeat finding. Recommendation Management should establish internal controls and procedures to ensure that excess residual receipts reserve funds are remitted timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits. Finding Resolution Status: Resolved. Views of Responsible Officials The inspection was conducted under previous management. The Franklin Johnston Group took over July 1st, 2023. When the Franklin Johnston Group took over, the new management were unable to get in contact with HUD for months to receive confirmation wiring instructions. HUD requires residual receipts to be remitted and deposited no later than the termination/renewal date. The Franklin Johnston Group just received confirmation wiring instructions as of January 2024. Funds of $2,794 are now paid as of January of 2024. The Franklin Johnston Group will ensure that moving forward all residual receipts are to be remitted and expedited in a timely matter.

Corrective Action Plan

Project Legal Name: The Harry and Jeanette Weinberg Terrace, INC HUD Project No.: 502-EE015 Audit Firm: CohnReznick Period covered by the audit: Year end June 2023 Corrective Action Plan prepared by: Name: Shantay Hall Position: HUD Compliance Specialist Telephone Number: 571-307-6571 The following is a recommended format to be followed by the auditee for preparing a corrective action plan: A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding # 2023‐002; Section 202 Supportive Housing for the Elderly, Assistance Listing 14.157 a. Recommendation: Management should establish internal controls and procedures to ensure that excess residual receipts reserve funds are remitted timely. b. Action(s) Taken or Planned on the Finding The inspection was conducted under previous management. The Franklin Johnston Group took over July 1st, 2023. When the Franklin Johnston group took over, we were unable to get in contact with HUD for months to receive Confirmation wiring instructions. HUD requires Residual receipts to be remitted and deposited no later than the termination/renewal date. The Franklin Johnston group just received confirmation wiring instructions as of January 2024. Funds of $2,794.00 are now paid as of January of 2024. The Franklin Johnston Group will ensure that moving forward all residual receipts are to be remitted and expedited in a timely matter.

Categories

HUD Housing Programs Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 397967 2023-001
    Material Weakness Repeat
  • 397969 2023-001
    Material Weakness Repeat
  • 397970 2023-002
    Material Weakness
  • 974409 2023-001
    Material Weakness Repeat
  • 974410 2023-002
    Material Weakness
  • 974411 2023-001
    Material Weakness Repeat
  • 974412 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $387,110