Finding Text
FINDINGS AND QUESTIONED COSTS?MAJOR FEDERAL AWARD PROGRAM AUDIT 2023-01 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: CFDA #14.157 Supportive Housing for the Elderly Type of Finding: Noncompliance\significant deficiency in internal control over compliance Criteria The Organization, in accordance with the Regulatory Agreement, is required to maintain a reserve for replacements. The required minimum monthly deposit into this account is $1,338 for the year ended December 31, 2023. Condition For the year ended December 31, 2023, a total of $16,056 was to be deposited into the replacement reserve accounts. However, no amounts were deposited. Additionally, there were replacment reserve amounts of $9,812 from fiscal years 2022 and 2021 which have not been deposited to date. Questioned Costs None Cause Due to turnover in the accounting department staff, the required monthly deposits were not made in a timely fashion. Effect The Organization did not make the deposits into the replacement reserve account as required by the Regulatory Agreement. Recommendation The Organization should have procedures in place to ensure all required monthly deposits are made to the reserve for replacements. Views of Responsible Officials and Planned Corrective Action See accompanying Corrective Action Plan.