FAC Explorer

Finding 525258 (2024-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-03
Audit: 344480
Organization: Accessible Country Trail Ii, Inc./ Swan Creek Apts 042-Hd055 (OH)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal controls regarding compliance with HUD requirements for surplus cash deposits.
  • Impacted Requirements: The residual receipts account is not compliant with HUD's provisions, leading to underfunding.
  • Recommended Follow-Up: Implement controls to ensure timely deposits of surplus cash to avoid future compliance issues.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Questioned costs: None Context: During our testing we noted that current year required surplus cash had not yet been deposited through December 20, 2024. Cause: The untimely deposit is due to oversight. Effect: The residual receipts account is not in compliance with HUD Residual Receipts Provisions and is underfunded. Repeat Finding: No Recommendation: We recommend the ACT II design and implement controls to prevent non- compliance with HUD requirements surrounding surplus cash deposits. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Supportive Housing for Persons with Disabilities – Assistance Listing No. 14.181 Recommendation: Perform training regarding HUD requirements surrounding Residual Receipts Provisions and introduce policies and procedures to prevent oversight of surplus cash deposits. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management with conduct training and introduce new policies and procedures to prevent noncompliance. Name(s) of the contact person(s) responsible for corrective action: Cheryl Wilson, Executive Director

Categories

HUD Housing Programs Internal Control / Segregation of Duties Cash Management Reporting Significant Deficiency Special Tests & Provisions

Other Findings in this Audit

  • 525256 2024-002
    Significant Deficiency
  • 525257 2024-002
    Significant Deficiency
  • 525259 2024-003
    Significant Deficiency
  • 1101698 2024-002
    Significant Deficiency
  • 1101699 2024-002
    Significant Deficiency
  • 1101700 2024-003
    Significant Deficiency
  • 1101701 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $1.11M