Finding 485703 (2023-002)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-09-04

AI Summary

  • Core Issue: The Project has a funding shortfall of $9,007 in escrow deposits for taxes and insurance.
  • Impacted Requirements: The Project must comply with regulatory agreements to pay all taxes and charges on time.
  • Recommended Follow-Up: Ensure timely deposits into the escrow account and monitor new procedures to prevent future deficiencies.

Finding Text

FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All insurance and tax escrow deposits. Sample Size Information: All insurance and tax escrow deposits. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by regulatory agreement, the Project is required to pay, when due, all taxes, assessments, and other charges. Statement of Condition: The Project is deficient in funding escrow deposits in the amount of $9,007. Cause: The Project did not properly fund the escrow account based on current period insurance premiums and tax rates. Effect or Potential Effect: The escrow deposits are not sufficient to meet future obligations. Auditor Non-Compliance Code: S – Internal Control Deficiencies. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor's recommendations will be adopted. Recommendation: The Project should make sufficient deposits to the escrow account in a timely manner. Response Indicator: Agree. Completion Date: 12/31/2024. Response: New procedures have been implemented to ensure appropriate amounts are reserved in escrow.

Corrective Action Plan

FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should make sufficient deposits to the escrow account in a timely manner. Action Taken: New procedures have been implemented to ensure appropriate amounts are reserved in escrow. If the Oversight Agency for Audit has questions regarding the plan, please call Irene Phillips at 954-835-9200 Sincerely yours, Irene Phillips, CFO.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly - Capital Advance $3.08M
14.157 Supportive Housing for the Elderly - Prac $154,319