Finding 400990 (2023-003)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-06-17

Audit: 309049

Organization: Methodist Manor Retirement Community (IA)

Auditor: Williams & Company

AI Summary

Answer: The debt service reserve must be in a separate general ledger account.
Trend: Management oversight led to non-compliance with this requirement.
List: Ensure the separate account is maintained to avoid funding withdrawal; the Organization has now complied.

Finding Text

Criteria: The debt service reserve should have a separate general ledger account. Condition: During our review of compliance requirements for the Community Facilities Loans & Grants Cluster, we identified the funds were not in a separate general ledger account. Cause: The requirement was not met due to an oversight of management. Potential Effect: As a result, the Agency reserves the right to withdraw Agency funding. Recommendation: The Organization should setup a separate general ledger account for debt service reserve. Client Response: The Organization has setup a separate general ledger account.

Corrective Action Plan

Compliance Reporting — Reserve Funds Criteria: The debt service reserve should have a separate general ledger account. Condition: During our review of compliance requirements for the Community Facilities Loans & Grants C luster, we identified the funds were not in a separate general ledger account. Cause: The requirement was not met due to an oversight of management. Potential Effect: As a result, the Agency reserves the right to withdraw Agency funding. Recommendation: The Organization should setup a separate general ledger account for debt service reserve. C lient Response: The Organization has setup a separate general ledger account. Conclusion: Response accepted.

Other Findings in this Audit

400989 2023-002

-
977431 2023-002

-
977432 2023-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
10.766	Community Facilities Loans and Grants	$28.05M