Finding 501565 (2024-002)

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Requirement
C
Questioned Costs
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Year
2024
Accepted
2024-10-02
Audit: 323609
Organization: Malm Manor, Inc. (RI)
Auditor: D'ambra CPA

AI Summary

  • Answer: Prior year surplus cash of $12,142 was not deposited into the residual receipts account.
  • Trend: This oversight leads to an understatement of the residual receipts account.
  • List: Management should deposit the current year surplus cash of $47,364, including the prior year surplus.

Finding Text

Condition: the prior year surplus cash totaling $12,142 was not deposited to the residual receipts; Criteria: the HUD handbook requires surplus cash to be deposited to the residual receipts account; Effect: the residual receipts account is understated by $12,142; Cause: Management oversight. Recommendation: Management should deposit the current year surplus cash totaling $47,364 which includes the prior year surplus cash totaling $12,142. Management comment: Management will transfer the funds.

Corrective Action Plan

Cash was held to pay off outstanding balance of payables to the sponsor per rent increase agreement. Malm will transfer the funds and apply for the release of those funds in the subsequent fiscal year. Charles Lynch, Finance Director, will be the responsible person.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $225,568