Finding 48713 (2022-003)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2022-10-16

AI Summary

  • Core Issue: The organization failed to make monthly deposits into the replacement reserve account, only completing 7 out of 12 required deposits.
  • Impacted Requirements: This non-compliance with the regulatory agreement affects the organization's standing and could lead to questioned costs of $1,713.
  • Recommended Follow-Up: Staff training is essential to ensure compliance with replacement reserve requirements and prevent future issues.

Finding Text

S3800-010 Finding Reference Number: 2022-003 S3800-011 Title and CFDA Number of Federal Program: Supportive Housing for Persons with Disabilities - 14.181 S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: In Process S3800-020 Criteria: Per the regulatory agreement, monthly deposits are required to be made in the replacement reserve account. S3800-030 Statement of Condition: Only seven out of the twelve months were deposited into the replacement reserve account. S3800-032 Cause: Monthly deposits are required to be made into the replacement reserve account throughout the year. During the year, the Organization stopped depositing money into the replacement reserve account. S3800-033 Effect: The Organization is not in compliance per its regulatory agreement. S3800-035 Auditor Non-Compliance Code: N - Reserve for Replacements Deposits S3800-040 Questioned Costs: $1,713 S3800-045 Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations are in the process of being implemented. S3800-050 Context: Review of the replacement reserve activity showed that the client had not deposited the required amount into the account. S3800-080 Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all replacement reserve compliance requirements. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: The Organization, due to a change in staffing, did not deposit the required amount. Management has agreed to properly train staff to insure the requirement is met in future years. S3800-130 Response Indicator: Agree S3800-140 Completion Date: September 30, 2022 S3800-150 Response: The auditee is committed to correcting the finding.

Corrective Action Plan

Recommendation: Staff training should be performed to bring the staff up to date with the implementation of all replacement reserve compliance requirements. Action Taken: The Organization will insure that all missed and future monthly deposits to the reserve for replacement account are made in accordance with their required monthly amount.

Categories

Questioned Costs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $1.06M