FAC Explorer

Finding 567066 (2024-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-06-25
Audit: 359955
Organization: Friendship Community Care, Inc. (AR)
Auditor: Landmark Plc Certified Public Accountants

AI Summary

  • Answer: The Project failed to keep reserve and residual receipts in interest-bearing accounts.
  • Trend: This change was made to cut bank fees, but it violates HUD regulations.
  • List: Management should regularly check that these accounts remain interest-bearing to ensure compliance.

Finding Text

2024-002: Failure to place reserve for replacement and residual receipts into interest-bearing accounts – HUD entities Condition: The reserve for replacement and residual receipts bank accounts are not interest‐bearing accounts. Criteria and cause: The Project’s bank moved the reserve and residual receipts accounts into non-interest-bearing accounts to reduce bank fees. Effect: The Project is not in compliance with HUD Handbook 4350.1 Chapter 4 and 24 CFR 880 & 881. Recommendation: The management agent should monitor accounts to ensure they are continuously maintained in interest-bearing accounts.

Corrective Action Plan

Management concurs with the auditor’s findings and recommendations. The Management Agent has been in the process of working with the bank to move these funds into interest-bearing accounts for the past two years, however based on interest rates during this time the bank fees would have exceeded the interest earned on these accounts and it was not prudent of the project to move the accounts. The Management Agent will continue to monitor the accounts going forward and will move the accounts into interest-bearing accounts when it makes financial sense to do so.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 567058 2024-001
    Material Weakness Repeat
  • 567059 2024-001
    Material Weakness Repeat
  • 567060 2024-001
    Material Weakness Repeat
  • 567061 2024-001
    Material Weakness Repeat
  • 567062 2024-001
    Material Weakness Repeat
  • 567063 2024-001
    Material Weakness Repeat
  • 567064 2024-001
    Material Weakness Repeat
  • 567065 2024-001
    Material Weakness Repeat
  • 567067 2024-002
    Material Weakness
  • 567068 2024-003
    Material Weakness
  • 567069 2024-003
    Material Weakness
  • 567070 2024-003
    Material Weakness
  • 567071 2024-003
    Material Weakness
  • 567072 2024-003
    Material Weakness
  • 567073 2024-003
    Material Weakness
  • 567074 2024-003
    Material Weakness
  • 567075 2024-003
    Material Weakness
  • 567076 2024-003
    Material Weakness
  • 567077 2024-003
    Material Weakness
  • 567078 2024-003
    Material Weakness
  • 567079 2024-003
    Material Weakness
  • 567080 2024-003
    Material Weakness
  • 567081 2024-003
    Material Weakness
  • 567082 2024-003
    Material Weakness
  • 567083 2024-003
    Material Weakness
  • 567084 2024-003
    Material Weakness
  • 567085 2024-003
    Material Weakness
  • 567086 2024-003
    Material Weakness
  • 567087 2024-003
    Material Weakness
  • 567088 2024-003
    Material Weakness
  • 567089 2024-003
    Material Weakness
  • 1143500 2024-001
    Material Weakness Repeat
  • 1143501 2024-001
    Material Weakness Repeat
  • 1143502 2024-001
    Material Weakness Repeat
  • 1143503 2024-001
    Material Weakness Repeat
  • 1143504 2024-001
    Material Weakness Repeat
  • 1143505 2024-001
    Material Weakness Repeat
  • 1143506 2024-001
    Material Weakness Repeat
  • 1143507 2024-001
    Material Weakness Repeat
  • 1143508 2024-002
    Material Weakness
  • 1143509 2024-002
    Material Weakness
  • 1143510 2024-003
    Material Weakness
  • 1143511 2024-003
    Material Weakness
  • 1143512 2024-003
    Material Weakness
  • 1143513 2024-003
    Material Weakness
  • 1143514 2024-003
    Material Weakness
  • 1143515 2024-003
    Material Weakness
  • 1143516 2024-003
    Material Weakness
  • 1143517 2024-003
    Material Weakness
  • 1143518 2024-003
    Material Weakness
  • 1143519 2024-003
    Material Weakness
  • 1143520 2024-003
    Material Weakness
  • 1143521 2024-003
    Material Weakness
  • 1143522 2024-003
    Material Weakness
  • 1143523 2024-003
    Material Weakness
  • 1143524 2024-003
    Material Weakness
  • 1143525 2024-003
    Material Weakness
  • 1143526 2024-003
    Material Weakness
  • 1143527 2024-003
    Material Weakness
  • 1143528 2024-003
    Material Weakness
  • 1143529 2024-003
    Material Weakness
  • 1143530 2024-003
    Material Weakness
  • 1143531 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $1.02M
10.558 Child and Adult Care Food Program $633,691
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $615,090
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $553,749
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $243,277
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $183,140
84.181 Special Education-Grants for Infants and Families $131,289
93.053 Nutrition Services Incentive Program $123,225
93.575 Child Care and Development Block Grant $92,790
14.195 Section 8 Housing Assistance Payments Program $89,853
93.667 Social Services Block Grant $85,945
14.181 Supportive Housing for Persons with Disabilities $40,490
14.157 Supportive Housing for the Elderly $33,896
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $30,815
93.658 Foster Care_title IV-E $24,006
93.791 Money Follows the Person Rebalancing Demonstration $7,675
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $6,516