FAC Explorer

Finding 42545 (2022-001)

- Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 38346
Organization: Robertsville Apartments, Inc. (TN)
Auditor: Jhm Certified Public Accountants

AI Summary

  • Core Issue: The Organization's escrow account lacked sufficient deposits as of December 31, 2022.
  • Impacted Requirements: Failure to fund the escrow account may lead to inability to pay taxes and insurance for the upcoming year.
  • Recommended Follow-Up: Management should budget for monthly deposits and request a rent increase to ensure adequate funding.

Finding Text

"Criteria The Organization is required to make deposits into an escrow account to fund tax and insurance payments for the fiscal year. Condition The Organization?s escrow cash account did not have adequate deposits as of December 31, 2022. Cause The Organization had inadequate cash on hand to fund the escrow account. Effect The Organization may not be able to pay for their taxes and insurance for the upcoming year. Recommendation Management should budget for monthly tax and insurance escrow deposits and request a rent increase to prevent future shortfalls in escrow cash. Views of Management Management concurs. Auditors? summary of the auditee?s comments on the findings and recommendations Management will request a rent increase and make deposits to the escrow account sufficient to cover future tax and insurance costs."

Corrective Action Plan

"Name of auditee: Robertsville Apartments, Inc. HUD auditee identification number: 087-HD044-NP-PMI Name of audit firm: Johnson, Hickey, & Murchison, P.C. Period covered by the audit: Year ended December 31, 2022 Corrective Action Plan prepared by: Name: Myra Walker Position: Director of Housing Telephone 931-432-4111 Findings ? Federal Awards Program Findings Reference Number: 2022-001 Federal Agency: Department of Housing and Urban Development Federal Program: Supportive Housing for Persons with Disabilities CFDA Number: 14.157 Management's response: Management concurs with the finding. Corrective Action Plan: Management will request a rent increase when the property is eligible and budget for monthly tax and escrow deposits to prevent future shortfalls in escrow cash."

Categories

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Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $1.14M