Finding 523136 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-02-13
Audit: 342455
Organization: Indian Town Home Association (IL)

AI Summary

  • Core Issue: The Organization failed to deposit surplus cash of $39,374 into the required account within the 90-day deadline.
  • Impacted Requirements: This action violates HUD's regulatory agreement regarding surplus cash management.
  • Recommended Follow-Up: Management should implement procedures to ensure timely deposits of surplus cash in the future.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Section 202 Project Rental Assistance Contract Assistance Listing #: 14.157 Type of Finding: • Other Matter and Significant Deficiency in Internal Control over Compliance Condition: The Organization had surplus cash at September 30, 2023 of $39,374. This surplus cash was not deposited into the residual receipts reserve account within 90 days from September 30, 2023. The deposit was made on July 31, 2024. Criteria or Specific Requirement: The HUD regulatory agreement requires any surplus cash to be deposited into the residual receipts account within 90 days of year end. Questioned Costs: None Cause: Management oversight. Effect: The Organization is not in compliance with the HUD regulatory agreement. Repeat Finding: No Recommendation: We recommend that management ensure any surplus cash is deposited within 90 days of year end. Views of Responsible Officials and Planned Corrective Actions: We agree and will ensure future surplus cash is deposited within the required timeline.

Corrective Action Plan

Supportive Housing for the Elderly (Section 202) Mortgage Financing– FAL No. 14.157 Section 202 Project Rental Assistance Contract – FAL No. 14.157 Recommendation: We recommend that management ensure any surplus cash is deposited within 90 days of year end. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We will ensure future surplus cash is deposited within the required timeline. Name(s) of the contact person(s) responsible for corrective action: Tammy Neuhalfen Planned completion date for corrective action plan: January 30, 2025

Categories

HUD Housing Programs Internal Control / Segregation of Duties Cash Management Significant Deficiency

Other Findings in this Audit

  • 523134 2024-001
    Material Weakness
  • 523135 2024-001
    Material Weakness
  • 523137 2024-002
    Significant Deficiency
  • 1099576 2024-001
    Material Weakness
  • 1099577 2024-001
    Material Weakness
  • 1099578 2024-002
    Significant Deficiency
  • 1099579 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $1.82M