Finding 48073 (2022-001)

Material Weakness

Requirement

Questioned Costs

Year

2022

Accepted

2023-09-24

Audit: 52789

Organization: S.g. Noble Garden of Hope (LA)

Auditor: Wharton CPA LLC

AI Summary

Issue: Surplus cash of $9,619 was not deposited into the residual receipts account by the end of 2021.
Requirement: HUD rules mandate that surplus cash must be deposited at the end of each fiscal year.
Follow-up: Management should ensure all surplus cash deposits are made to comply with HUD regulations.

Finding Text

2022-1 Surplus Cash Not Deposited to Residual Receipts Condition: Surplus cash was calculated at $9,619 at December 31, 2021. Criteria: Surplus cash is required to be deposited into the residual receipts account at the end of each fiscal year in which it is calculated. Cause: The cause is undeterminable. Effect: The property is not in compliance with HUD rules and regulations as it relates to surplus cash. Recommendation: I recommend management make all required deposits of surplus cash to the residual receipts account in compliance with HUD rules and regulations.

Corrective Action Plan

2022-1 Surplus Cash Not Deposited to Residual Receipts Condition: Surplus cash was calculated at $9,619 at December 31, 2021. Criteria: Surplus cash is required to be deposited into the residual receipts account at the end of each fiscal year in which it was calculated. Cause: The cause is undeterminable. Effect: The property is not in compliance with HUD rules and regulations as it relates to surplus cash. Recommendation: I recommend management make all required deposits of surplus cash to the residual receipts account in compliance with HUD rules and regulations. Management Response: It is our understanding that the Board of Directors will be requesting a meeting with HUD to discuss the dissolution of this item. Upon meeting with HUD it will be discharged.

Other Findings in this Audit

48074 2022-002

Material Weakness Repeat
624515 2022-001

Material Weakness
624516 2022-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.157	Supportive Housing for the Elderly	$1.67M
14.195	Section 8 Housing Assistance Payments Program	$125,345