FAC Explorer

Finding 485396 (2023-001)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-08-29
Audit: 318132
Organization: Cushing Housing, INC (OK)
Auditor: M Group LLP

AI Summary

  • Core Issue: The Company failed to deposit surplus cash into the residual receipts account within the required 60 days after year-end.
  • Impacted Requirements: This action violates the HUD regulatory agreement, which mandates timely deposits of surplus cash.
  • Recommended Follow-Up: Ensure future surplus cash deposits are made within the 60-day timeframe to comply with HUD regulations.

Finding Text

Finding #2023-001: HUD Guaranteed 223(a)(7) Mortgage 14.135 Type of Finding: Significant Deficiency Condition: During 2022, the Company did not deposit surplus cash into the residual receipts account within 60 days of year end. Criteria: The HUD regulatory agreement requires the Company to deposit surplus cash into the residual receipts account within 60 days of year end. Effect: The Company is in violation of its Regulatory Agreement. Questioned Cost: $23,238 Cause: The Company does not have the funds to transfer to the residual receipts account. Repeat Finding: No Recommendation: The Company should deposit any surplus cash into the residual receipts account within 60 days of year end. Auditor’s Comment: The Company does not have the funds to retroactively make the deposit to the residual receipts account.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: Cushing Housing, Inc. No. 117-11093 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: HUD Guaranteed 223(a)(7) Mortgage 14.135 CORRECTIVE ACTION COMPLETED: Within 60 days of 2022 year end, the Company had expended any surplus cash on the operations of the property and the funds were no longer available. Management is in contact with HUD to find a resolution to the finding. 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 Jimmy K. Arnold, President, Arnold Grounds Apartment Management & Affordable Housing Specialists.

Categories

HUD Housing Programs Cash Management Significant Deficiency

Other Findings in this Audit

  • 1061838 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.135 Mortgage Insurance_rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate $1.19M
14.195 Section 8 Housing Assistance Payments Program $289,098