Finding 570982 (2024-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2025-07-10

Audit: 361908

Organization: Wieder Silver Manor Apartments (OH)

Auditor: Cliftonlarsonallen LLP

AI Summary

Core Issue: Wieder-Silver Manor, Inc. did not make all required monthly deposits into the Replacement Reserve account, leading to an underfunding of $1,002.
Impacted Requirements: This finding indicates a significant deficiency in internal controls over compliance with HUD's monthly deposit requirements.
Recommended Follow-up: Implement a tracking system to ensure timely deposits and conduct regular reviews to prevent future oversights.

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 Criteria or specific requirement: Per HUD requirements, a mandated amount is required to be deposited into the Reserve for Replacement account each month. The entity did make all twelve required deposits. Condition: During our testing, we noted that Wieder-Silver Manor, Inc. failed to make all required monthly deposits into the Replacement for Reserve account resulting in underfunding of $1,002. Questioned costs: None Context: During our testing we noted that nine of the twelve required monthly deposits were deposited. Cause: The deposits were not made due to an oversight. Effect: Replacement Reserve is underfunded and not in compliance with HUD.

Corrective Action Plan

Supportive Housing for Persons with Disabilities – Assistance Listing No. 14.181 Recommendation: Perform training regarding HUD requirements surrounding Reserve for Replacement Provisions and introduce policies and procedures to prevent oversight of deposit changes. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management discovered the oversight in August 2024, and the required deposits were immediately made, Management has implemented additional controls to prevent the recurrence of the oversight. Management has already made the required deposit. Name(s) of the contact person(s) responsible for corrective action: Elaine Gimmel, Executive Director Planned completion date for corrective action plan: June 30, 2025 – corrective measure occurred in August 2024, prior to the audit.

Other Findings in this Audit

570983 2024-001

Significant Deficiency
1147424 2024-001

Significant Deficiency
1147425 2024-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.181	Supportive Housing for Persons with Disabilities	$127,689