FAC Explorer

Finding 404763 (2023-001)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
$1
Year
2023
Accepted
2024-06-30
Audit: 311152
Organization: St. George's Senior Housing, Inc. (TX)
Auditor: M Group LLP

AI Summary

  • Core Issue: The Company failed to make correct monthly deposits to the replacement reserve for 10 months and withdrew funds without HUD approval.
  • Impacted Requirements: This violates HUD regulations requiring timely deposits and prior approval for withdrawals.
  • Recommended Follow-Up: Monitor the replacement reserve account closely and ensure a deposit of $2,941 is made to maintain compliance.

Finding Text

Finding #2023-001: Section 202 Supportive Housing for the Elderly, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Material Weakness Condition: The Company did not make the correct monthly deposit amount to the replacement reserve for 10 months and the Company did not obtain HUD’s approval for a withdrawal from the replacement reserve account. Criteria: The HUD regulatory agreement requires monthly deposits into the replacement reserve account and requires HUD’s approval for any withdrawals from the replacement reserve. Questioned cost: $2,941 Effect: Replacement reserve account is underfunded and the Company is in violation of its Regulatory Agreement. Cause: Oversight Repeat Finding: Yes Recommendation: 2023-001a: The Company should closely monitor the replacement reserve account to ensure compliance with the Regulatory Agreement. 2023-001b: We recommend the Company deposit $2,941 into the replacement reserve account. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: On December 19, 2023, the Company deposited $2,941 into the replacement reserve account. Finding #2023-001 cleared.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: St. George's Senior Housing, Inc. No. 115-EH057 Audit Firm: M Group, LLP Audit Period: The year ended September 30, 2023 Compliance Review A. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN FINDING 1: Section 202 Supportive Housing for the Elderly, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 CORRECTIVE ACTION COMPLETED: On December 19, 2023, the Company deposited $2,941 into the replacement reserve account. Finding CLEARED. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 US. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Ms. Connie Quillen, Vice President, Asset Living.

Categories

Questioned Costs HUD Housing Programs Material Weakness

Other Findings in this Audit

  • 404764 2023-001
    Material Weakness Repeat
  • 981205 2023-001
    Material Weakness Repeat
  • 981206 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.195 Section 8 Housing Assistance Payments Program $426,969
14.157 Supportive Housing for the Elderly $322,898
14.191 Multifamily Housing Service Coordinators $64,900