Finding 48825 (2022-001)

- Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-07-04

AI Summary

  • Core Issue: The Company failed to make the required 12 monthly deposits into the replacement reserve account, only making 9.
  • Impacted Requirements: This oversight violates the HUD regulatory agreement, leading to an underfunded replacement reserve account.
  • Recommended Follow-Up: The Company should implement a system to closely monitor and ensure timely deposits into the replacement reserve to maintain compliance.

Finding Text

Finding #2022-001: Section 202 Capital Advance, CFDA 14.157 Condition: The Company made 9 monthly deposits into the replacement reserve account. Criteria: The HUD regulatory agreement requires the Company to make 12 monthly deposits into the replacement reserve account. Effect: Replacement reserve account is underfunded and the Company is in violation of its Regulatory Agreement. Questioned Cost: $2,149. Cause: Oversight Recommendation: The Company should closely monitor the deposits into the replacement reserve. Auditor?s Comment: We recommend the Company closely monitor deposits into the replacement reserve to ensure compliance with the Regulatory Agreement. On March 20, 2023, the Company funded $2,149 payment to the replacement reserve. Finding 2022-001 Cleared.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: Golden Acres Retirement Center, Inc. No. 112-EE009 Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2022 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, CFDA 14:157 CORRECTIVE ACTION COMPLETED: The Company had underfunded the replacement reserve in 2022 by three payments. On March XX, 2023 the Company deposited $2,149 into the replacement reserve. 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 $136,576