Finding 512852 (2024-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2024-12-03

Audit: 330617

Organization: Collins' Way, Inc. (MD)

Auditor: Cliftonlarsonallen

AI Summary

Core Issue: The project failed to make one required payment to the replacement reserve, resulting in an underfunding of $316.
Impacted Requirements: Compliance with HUD instructions mandates all 12 payments to the replacement reserve be made.
Recommended Follow-Up: Ensure the underfunded amount is remitted immediately to achieve compliance.

Finding Text

Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Type of Finding: Significant Deficiency in Internal Control Condition: The required contributions to the replacement reserve were underfunded by $316. Criteria: The Project is required to make contributions to the replacement reserve in accordance with HUD instructions. Effect: The effect is that the entity is out of compliance as not all 12 payments required by HUD were made. Cause: The Project’s internal control system did not identify timely that the monthly transfer was not made. Questioned Cost: $0.00 Context: 11 out of 12 payments were made timely and accurately. March 2024 was missing a deposit for $315.75. Repeat Finding: No. Recommendation: Remit the underfunded amount immediately. Views of Responsible Officials and Corrective Action Plan: Funds will be remitted immediately.

Corrective Action Plan

Department of Housing and Urban Development Supportive Housing for Persons with Disabilities – Assistance Listing No. 14.181 Recommendation: Submit the $315.75 immediately to the Replacement Reserve Account and train employees involved in the requirements of HUD in regards to timely and accurate Replacement Reserve contributions. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The amount of $315.75 was submitted to the Replacement Reserve via a transfer on September 26, 2024. Training to review the Replacement Reserve funding requirements will be completed. Name(s) of the contact person(s) responsible for corrective action: Thomas Evans, Chief Financial Officer. Planned completion date for corrective action plan: October 31, 2024 If the Department of Housing and Urban Development has questions regarding this plan, please call Thomas Evans at 301-663-8811 X1120.

Other Findings in this Audit

512853 2024-001

Significant Deficiency
1089294 2024-001

Significant Deficiency
1089295 2024-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.181	Supportive Housing for Persons with Disabilities	$18,447