FAC Explorer

Finding 502087 (2024-002)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-10-09
Audit: 324275
Organization: Afiya Apartments INC (OR)
Auditor: Jones & Roth PC

AI Summary

  • Core Issue: Afiya Apartments, Inc. failed to submit the annual audit to HUD by the required deadline.
  • Impacted Requirements: This finding highlights a significant deficiency in internal controls related to compliance with HUD's reporting standards.
  • Recommended Follow-Up: Management should establish internal controls to ensure timely completion and submission of audits to HUD.

Finding Text

Finding 2024-002 Type of Finding: Significant deficiency in internal control over compliance and immaterial noncompliance. Federal program: HUD Supportive Housing for Persons with Disabilities (Assistance Listing #14.181) Compliance Requirement: Reporting Criteria: Afiya Apartments, Inc.’s regulatory agreement with HUD and the HUD Uniform Financial Reporting Standards (24 CFR §5.801) require audited financial statements to be submitted to HUD within 90 days of the fiscal year end. HUD may authorize an extension to the 90-day due date. Condition: The annual audit for the fiscal year ended June 30, 2023 was not submitted by the due date as required by HUD. Cause: The audit was not completed within the applicable time frame, so it was not available to be submitted to HUD by the due date. Effect: The effect is immaterial non-compliance with the terms of the HUD program listed above. Questioned Costs: None. Repeat Finding: Yes, see Finding 2023-002. Context: Not applicable. Recommendation: We recommend management design and implement internal controls over compliance to ensure the audit is completed timely and submitted to HUD as required. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.

Corrective Action Plan

Management’s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Kathleen Broadhurst, Sr. Director of Finance, ShelterCare 2. The corrective action planned: a. ShelterCare, as managing agent, has hired a new property accountant which should help with keeping the books current and ShelterCare prepared to start audit work mid-July and be ready to submit the audit to HUD within 90 days of the fiscal year end. 3. The anticipated completion date: a. 7/01/2024. New property accountant was hired in August of 2023 and the audit for fiscal year ended June 30, 2024 will meet this submission deadline.

Categories

HUD Housing Programs Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 502086 2024-001
    Material Weakness Repeat
  • 502088 2024-003
    Material Weakness
  • 1078528 2024-001
    Material Weakness Repeat
  • 1078529 2024-002
    Significant Deficiency Repeat
  • 1078530 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $2.06M