Finding 42690 (2022-001)

Reference Number: 2022-001 Title and CFDA Number of Federal Program: Supportive Housing for the Elderly CFDA Number 14.157 Type of Finding: Financial Statement and Compliance finding Finding Resolution Status: Resolved Information on Universe Population Size: All monthly replacement reserve deposit for the year ended June 30, 2022. Sample Size Information: 11 Criteria: A good system of internal control requires proper controls in place to ensure monthly deposits are made in a timely manner. Statement of Condition: The replacement reserve account was not funded on a monthly basis. Cause: Management feels this was an oversight due the staff turnover during the year and has corrected the process. Effect or Potential Effect: The replacement reserve account was underfunded at year-end. Auditor Noncompliance Code: S ? Internal control deficiencies Questioned Cost: $3,828 Reporting Views of Responsible Officials: See management?s response FHA/Contract Number: 042EE096 Questioned Costs: $3,828 Context: Testing of the Project?s replacement reserve deposits. Recommendation: We recommend that the underfunded amount be deposited into the replacement account. Certain controls should be reviewed to prevent and detect these issues. Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendation: None necessary based on management?s response. Response Indicator: Agree Completion Date: 9/29/2022 Response: Management deposited the underfunded amount into replacement reserve account. Contact Person: Fred Berry