FAC Explorer

Finding 571925 (2024-001)

-
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-07-24
Audit: 363000
Organization: St Pius X Housing, INC Dolan Manor Apt (NC)
Auditor: O Douglas Covington CPA

AI Summary

  • Issue: Two replacement reserve withdrawals were found to be noncompliant due to duplicate expense claims.
  • Requirements Impacted: HUD regulations state that reserve withdrawals must be supported by checks and invoices and can only be requested once.
  • Follow-Up: The management agent needs to reimburse the replacement reserve account for the excess amount of $2,077.59.

Finding Text

Finding 2024-001 Finding Resolution Status: Resolved Population Size: 7 Sample Size: 7 Noncompliance Information: I tested seven replacement reserve withdrawals and found noncompliance in two withdrawals. Condition: The Project claimed duplicate expenses (PTAC Units for Unit #112 and #214 and hot water heater for #211) in the March 25, 2024, replacement withdrawal request and again in the July 8, 2024, replacement withdrawal request. Criteria: As part of the HUD regulations, reserve withdrawals for repairs and capital purchases must be supported by checks and invoices and can only be requested once. Effect: Project erroneously withdrew $2,077.59 for these duplicate items. Cause: Management agent oversight. Recommendation: The management agent should reimbursement the replacement reserve account for the excess withdrawal of $2,077.59. Questioned Costs: $2,077.59

Corrective Action Plan

Name of auditee: Dolan Manor II HUD auditee identification number: FHA/Contract 053-EE072 Name of audit firm: O. Douglas Covington, C.P.A., P.A. Period covered by the audit: January 1, 2024 thru December 31, 2024 CAP Prepared By: Name: Kenya Owens Position: Vice President of Operations Telephone: 336-944-5847 1. Finding 2024-001 a. Comments on the Finding and Each Recommendation At the time of audit, we are in agreement with the findings. b. Action(s) Taken or planned on the finding Due to an oversight on management duplicate invoices was submitted and approve through HUD. We have since corrected and returned the duplicated funds in the amount of $2,077.59 from the operating account back to the reserves account. *Regional Compliance Manager will review prior RFR previously submitted.

Categories

Questioned Costs Procurement, Suspension & Debarment Cash Management HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $107,000