Finding 484692 (2023-001)

- Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-08-20
Audit: 317580
Organization: Cliff View Village Iii, Inc. (TX)
Auditor: M Group LLP

AI Summary

  • Core Issue: The Company overfunded the replacement reserve account, violating HUD regulations.
  • Impacted Requirements: Monthly deposits must align with the HUD regulatory agreement, which specifies 12 deposits per year.
  • Recommended Follow-Up: Ensure future deposits meet the required amount and adhere to the regulatory agreement to avoid overfunding.

Finding Text

Finding #2023-001: Section 202 Capital Advance, Assistance Listing 14.157 Condition: The Company made additional deposits into the replacement reserve account that exceeded the required monthly deposit requirements. Criteria: The HUD regulatory agreement requires the Company to 12 monthly deposits into the replacement reserve account. Effect: Replacement reserve account is overfunded and is in violation of its Regulatory Agreement. Funds may not be available for operating costs. Questioned Cost: $770 Repeat Finding: Yes Cause: Oversight Recommendation: We recommend the Company deposit the required monthly deposits into the replacement reserve account and follow the terms of the regulatory agreement. Auditor’s Comment: Management will closely monitor the monthly deposits into the replacement reserve.

Corrective Action Plan

CORRECTIVE ACTION PLAN: Name and Number of the Project: Cliff View Village III, Inc. No. 112-EE034 Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2023 Compliance Review: A. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN: FINDING 1: Section 202 Capital Advance, Assistance Listing 14:157 CORRECTIVE ACTION TO BE COMPLETED: The Company overfunded the replacement reserve in 2023. Management will closely monitor the monthly deposits into the replacement reserve account. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Ms. Connie Quillen, Vice President, Asset Living.

Categories

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $80,205