FAC Explorer

Finding 5705 (2023-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-12-20
Audit: 7706
Organization: Afiya Apartments INC (OR)
Auditor: Jones & Roth PC

AI Summary

  • Core Issue: Afiya Apartments, Inc. failed to deposit surplus cash into the residual receipts account within the required 60 days after year-end.
  • Impacted Requirements: This finding relates to compliance with HUD regulations regarding the timely deposit of surplus cash.
  • Recommended Follow-Up: Management should establish and enforce internal controls to ensure timely deposits in the future.

Finding Text

Finding 2023-003 Type of Finding: Significant deficiency in internal control over compliance immaterial noncompliance. Federal program: HUD Supportive Housing for Persons with Disabilities (Assistance Listing #14.181) Compliance Requirement: Special Tests and Provisions – Residual Receipts Account Criteria: Afiya Apartments, Inc.’s regulatory agreement with HUD requires surplus cash to be deposited into the residual receipts account within 60 days following year-end. Condition: The required deposit of surplus cash was not made to the residual receipts account within 60 days following year-end as required. It was deposited late. Cause: There were not proper internal controls in place to ensure the deposit was made timely. Effect: The deposit was made after the required 60 days following year-end. This is considered immaterial noncompliance. Questioned Costs: None. Repeat Finding: No. Context: Not applicable. Recommendation: We recommend management design and implement internal controls over compliance to ensure that surplus cash is deposited to the residual receipts account within 60 days following year-end as required by HUD. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.

Corrective Action Plan

Management’s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Kathleen Broadhurst, Sr. Director of Finance/ShelterCare 2. The corrective action planned: a. ShelterCare, as new managing agent, will ensure that any surplus cash (if any) is deposited within 60 days following year-end. Prior Managing agent failed at following this requirement. 3. The anticipated completion date: a. August 29, 2023 (60 days after fiscal year-end)

Categories

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

Other Findings in this Audit

  • 5703 2023-001
    Material Weakness Repeat
  • 5704 2023-002
    Significant Deficiency
  • 5706 2023-004
    Significant Deficiency
  • 5707 2023-005
    Significant Deficiency
  • 582145 2023-001
    Material Weakness Repeat
  • 582146 2023-002
    Significant Deficiency
  • 582147 2023-003
    Significant Deficiency
  • 582148 2023-004
    Significant Deficiency
  • 582149 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $2.07M