Finding 541031 (2024-001)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 350637
Organization: Rodman Commons INC (RI)

AI Summary

  • Core Issue: Three out of twelve monthly deposits of $876 to the replacement reserve were missed, leading to non-compliance with HUD regulations.
  • Impacted Requirements: Ongoing replacement reserve payments are mandatory unless waived, and failure to comply affects the Corporation's financial standing.
  • Recommended Follow-Up: Improve cash flow management and submit replacement reserve reimbursement claims promptly to ensure timely payments and compliance.

Finding Text

Finding 2024-001: Supportive Elderly Housing Section 202 Condition: Three of the twelve required monthly deposits of $876 to the replacement reserve were not made during the year ended June 30, 2024. Criteria: Replacement reserve payments are an ongoing obligation, unless waived by HUD. Effect: The Corporation is not in compliance with the provisions of the Regulatory agreement. Cause: Poor cash flow from the Corporation does not always allow all bills to be paid in a timely manner. Recommendation: In periods of high repair expenditures, prompt submission of replacement reserve reimbursement claims will help replenish operating funds. This will enhance the Corporation’s ability to meet its monthly replacement reserve and other obligations. Views of Responsible Officials and Planned Corrective Actions: Corrective action will be implemented immediately with more thorough oversight over monthly replacement reserve disbursements.

Corrective Action Plan

Corrective Action Plan United States Department of Housing and Urban Development Rodman Commons, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Audit period covered: 7/1/2023-6/30/2024 The findings from the June 30, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: Section 202 Project Rental Assistance—Assistance Listing # 14.157 Recommendation: The Corporation should design and implement internal controls to ensure that all replacement reserve deposits are deposited in a timely manner. Action Taken: Management has implemented internal controls to ensure that monthly replacement reserve deposits are made in a timely fashion. An individual at the office has been assigned oversight responsibility to ensure these deposits are made each month. If the United States Department of Housing and Urban Development has questions regarding this plan, please call Frank Shea at (401) 296-3761.

Categories

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

Other Findings in this Audit

  • 1117473 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $3.15M