Finding 48827 (2022-002)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-07-04
Audit: 47487
Organization: Sunray Communities, Inc. (TX)
Auditor: M Group LLP

AI Summary

  • Issue: The Company failed to make the required 12 monthly deposits into the replacement reserve account, only making 10.
  • Impact: This non-compliance with the HUD regulatory agreement resulted in a questioned cost of $2,400.
  • Follow-up: The Company should implement a system to monitor and ensure timely deposits into the replacement reserve moving forward.

Finding Text

Finding #2022-002: Section 202 Capital Advance, CFDA 14.157 Condition: The Company made 10 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: The Company is not in compliance with the HUD regulatory agreement. Questioned Cost: $2,400 Cause: Oversight Recommendation: The Company should closely monitor the deposits into the replacement reserves. Auditor?s Comment: We recommend the Company closely monitor the deposits into the replacement reserve to ensure compliance with its Regulatory Agreement. During March 2023, the Company transferred $2,400 to the replacement reserve. Finding 2022-002 cleared.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: Sunray Communities, Inc. No. 112-EE003 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 2: Section 202 Capital Advance, CFDA 14.157 CORRECTIVE ACTION COMPLETED: The Company deposited $2,400 on March 27, 2023 into the replacement reserve. Finding 2022-002 Cleared. 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 $167,631