FAC Explorer

Finding 499747 (2024-002)

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Requirement
N
Questioned Costs
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Year
2024
Accepted
2024-09-30
Audit: 322564
Organization: East Long Pond Apartments, Inc. (RI)
Auditor: D'ambra CPA

AI Summary

  • Answer: The replacement reserve is short by $1,175 due to management oversight.
  • Trend: This indicates a recurring issue with meeting funding requirements as outlined in the PRAC contract.
  • List: Management plans to transfer funds from the operating cash account to resolve the shortfall.

Finding Text

Condition: The deposits to the replacement reserve were deficient of the amount required amount by $1,175; Criteria: the PRAC contract specifies the amount of the monthly deposits to be funded; Effect: The replacement reserve is underfunded by $1,175; Cause: Management oversight. Recommendation: Management should transfer funds from the operating cash account to cover the shortfall. Management comment: Management will transfer the required funds.

Corrective Action Plan

The deficiency was due to confusion resulting from the overpayment condition mentioned in 2023-003. Going forward, the Finance Director will suggest to management to open an operating checking account in the same bank as the reserve account. Automatic electronic transfers can then be actuated. Charles Lynch, Finance Director, will be the responsible party.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $221,276
14.181 Supportive Housing for Persons with Disabilities $114,746