Finding 41628 (2022-001)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-03-28

AI Summary

  • Core Issue: The project failed to make required deposits to the residual receipts account as mandated by the Regulatory Agreement.
  • Impacted Requirements: Deposits must be made within 90 days of year-end into a separate bank account for Residual Receipts.
  • Recommended Follow-Up: Management should enhance monitoring of internal controls to ensure compliance with deposit requirements.

Finding Text

S3800-010 Finding reference number - 2022-001; S3800-011 Title and AL number of federal program - Supportive Housing for the Elderly, AL # 14.157; S3800-015 Type of finding - Federal Award Finding; S3800-016 Finding Resolution status Resolved; S3800-017 Information on universe population size - not applicable; S3800-018 Sample size information - not applicable; S3800-019 Identification of repeat finding and finding reference number - not applicable; S3800-020 Criteria - The Regulatory Agreement requires the deposit due residual receipts as determined by the "Computation of Surplus Cash, Distributions and Residual Receipts" to be made within 90 days of year-end in a separate bank account for Residual Receipts. S3800-030 Statement of condition - The Project did not make the required deposit to the residual receipt account per the Regulatory Agreement.; S3800-035 Auditor non-compliance code - B - Failure to Make Required Residual Receipts Deposits; S3800-037 FHA/Contract number - 073-EE034; S3800-040 Questioned costs - $33,543; S3800-045 Reporting views of responsible officials - Management concurs with the auditors' recommendation and has made the necessary deposit and the residual receipts is currently funded based on the requirements of the Regulatory Agreement.; S3800-080 Recommendation - Management should monitor internal controls over compliance.; S3800-090 Auditors' summary of the auditee's comments on the findings and recommendations - Management agrees and has made the necessary deposit after year-end.; S3800-130 Response indicator - Agree; S3800-140 Anticipated Completion Date - Completed (9/16/2022); S3800-150 Response - Concurs.

Corrective Action Plan

Finding 2022-001 - (Supportive Housing for the Elderly 14.157); Concur or Do Not Concur with this Finding - Concur; Agree or Disagree with auditor recommendations - Agree; Completion Date or Proposed Completion Date -September 16, 2022; Actions Taken or Planned on the Finding - Management has made the required deposit into the residual receipts account.; Contact Person First Name - Dawn; Contact Person Last Name - Cole.

Categories

Questioned Costs Cash Management HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 41629 2022-002
    Material Weakness
  • 618070 2022-001
    -
  • 618071 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly - Section 202 Hud Capital Advance $2.66M
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract $305,292
14.157 Supportive Housing for the Elderly - Covid-19 - Project Rental Assistance Contract $743