Finding 400641 (2023-002)

Significant Deficiency Repeat Finding

Requirement

Questioned Costs

Year

2023

Accepted

2024-06-12

Audit: 308683

Organization: Fairbanks Community Homes 176-Hd-021 (AK)

Auditor: Hutchings & Associates CPAS

AI Summary

Core Issue: The Organization did not deposit surplus cash into the residual receipts account within the required 60 days after the fiscal year ended.
Impacted Requirements: This failure violates 24 CFR §891.400(e) and the Capital Advance Program Regulatory Agreement, leading to non-compliance.
Recommended Follow-Up: Implement controls to ensure timely compliance with HUD reporting requirements and monitor financial statement submissions.

Finding Text

Failure to deposit Surplus Cash in the Residual Receipts Accounts Criteria: Pursuant to 24 CFR §891.400(e) "Use of project funds" any surplus cash following the expiration of the fiscal year shall be deposited in a residual receipts account within 60 days following the end of the fiscal year. Condition: The Organization failed to timely transfer the surplus cash to theresidual receipts account. Questioned Costs: Unknown. Context: Upon review of the residual receipts activity after year end the surplus cash was not transferred to the restricted residual receipts account in a timely manner. Effect: The Organization is not in compliance with the Capital Advance Program Regulatory Agreement and has been notified by HUD of the late filing. Cause: The Organization did not have controls in place to identify HUD's reporting requirements. Recommendation: The Organization should implement controls to ensure future compliance and timely reporting of the unaudited financial statements. Identification of repeat finding: This is an ongoing finding. Management's Response: Management concurs with the finding. See Corrective Action Plan.

Corrective Action Plan

Failure to deposit Surplus Cash in the Residual Receipts accounts Name of Contact:Kendrick D. Blais, President Management's view:Management agrees with the finding. Corrective Action: Management will transfer surplus cash to the residual receipts account. Proposed Completion Date: June 30, 2024

Other Findings in this Audit

400642 2023-003

Significant Deficiency Repeat
400643 2023-004

Significant Deficiency Repeat
400644 2023-002

Significant Deficiency Repeat
400645 2023-003

Significant Deficiency Repeat
400646 2023-004

Significant Deficiency Repeat
977083 2023-002

Significant Deficiency Repeat
977084 2023-003

Significant Deficiency Repeat
977085 2023-004

Significant Deficiency Repeat
977086 2023-002

Significant Deficiency Repeat
977087 2023-003

Significant Deficiency Repeat
977088 2023-004

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.181	Supportive Housing for Persons with Disabilities	$58,992