Finding 500176 (2023-001)

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Requirement
P
Questioned Costs
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Year
2023
Accepted
2024-09-30

AI Summary

  • Issue: Withdrawals of $3,065.08 from replacement reserves lacked proper invoices or cash disbursements.
  • Impact: The replacement reserve is underfunded by $3,065.08.
  • Recommendation: Ensure tracking of reserve requests aligns with actual cash disbursements.

Finding Text

Finding number : 2023-001 ALN: 14.157 Supportive Housing for the Elderly Grantor: HUD Questioned Costs: $0 Description of Condition: Withdrawals from the replacement reserves totaling $3,065.08 were not supported by invoices or cash disbursements. Cause of Condition: Supporting documentation was based on quotes which do not appear to have ever been accepted. Paying on quotes is a common practice in this area of Connecticut. Effect of Condition: Replacement reserve is under funded by $3,065.08. Recommendations: Care be taken to track reserve requests to the actual cash disbursements. Replacement reserve is under funded by $3,065.08. Care be taken to track reserve requests to the actual cash disbursements.

Corrective Action Plan

Corrective Action Plan September 23, 2024 U.S. Department of Housing & Urban Development 20 Church Street, 10 th floor Hartford, CT 06103 Northwest Senior Housing Corporation respectfully submits the following corrective action plan for Susan M. B. Perry Senior Housing's (Project #Ol 7-EE088) year ended December 31, 2023, which was audited by: Bailey, Moore, Glazer, Shaefer & Proto LLP 16 Lunar Drive Woodbridge, CT 06525 The sole finding from the 12/31/2023 schedule of findings and questions costs is discussed below and numbered consistently with the numbers assigned in the schedule. FINDINGS - FINANCIAL STATEMENT AUDIT NONE FINDINGS - FEDERAL A WARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding number 2023-001: 14.157 Supportive Housing for the Elderly Condition: Withdrawals from the replacement reserves totaling $3,065.08 were not supported by invoices or cash disbursements. As a result, the replacement reserve is underfunded by this amount. Recommendation: Care to be taken to track reserve requests to the actual cash disbursements. Action Taken: Upon receipt of an approved replacement reserve draw, the payment status of all listed invoices are reviewed and within three business day of the money being transferred, checks are cut towards any invoices that have not yet been paid. Furthermore, the unsubstantiated $3,065.08 that was drawn from the replacement reserve account was returned to the account on September 25, 2024. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Matthew Fontaine at (860) 951-9411 extension 249. Matthew Fontaine, CPA Managing Agent

Categories

Procurement, Suspension & Debarment HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $144,099