FAC Explorer

Finding 47620 (2022-001)

- Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-10-23
Audit: 40825
Organization: Fiddler's Annex, Inc. (TN)
Auditor: Johnson Hickey & Murchison PC

AI Summary

  • Core Issue: The Organization's escrow account lacked sufficient deposits as of June 30, 2022, risking their ability to pay taxes and insurance.
  • Impacted Requirements: The Organization must ensure adequate funding in the escrow account as mandated for federal program compliance.
  • Recommended Follow-Up: Management should budget for monthly escrow deposits and seek a rent increase to avoid future funding shortfalls.

Finding Text

Finding 2022-001 Information on federal program Section 202 Supportive Housing for the Elderly Federal Assistance Listing Number 14.157. Questioned costs $0 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 June 30, 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: Fiddler?s Annex, Inc. HUD auditee identification number: 086-IF001 Name of audit firm: Johnson, Hickey, & Murchison, P.C. Period covered by the audit: Year ended June 30, 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 the Elderly 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. Implementation Date: Immediately.

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Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $1.70M