Finding 571929 (2024-003)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2025-07-25

Audit: 363016

Organization: Heritage Grove Inc. (IL)

Auditor: McK CPAS & Advisors

AI Summary

Issue: The Project missed a required replacement reserve deposit for March 2024 due to management oversight.
Impact: This oversight leads to noncompliance with HUD regulations, although all other deposits were made on time.
Follow-up: Management should enhance internal controls to ensure timely deposits in the future; the missed deposit was addressed in May 2024.

Finding Text

2024 - 003 Replacement Reserve Deposit; Agency: U.S. Department of Housing and Urban Development (HUD); Assistance Listing Number: 14.181; Program: Supportive Housing for Persons with DisabilitiesCriteria: The Project is required to make monthly replacement reserve deposits.; Condition: The Project did not make a required replacement reserve deposit for March 2024.; Cause: Management oversight led to the lack of monthly deposit for March 2024. All other deposits during the year were made timely.; Effect: Failure to make replacement reserve deposits results in noncompliance with the regulatory agreement.; Recommendation: The Project should review its internal control policies to ensure all deposits are made timely.; Management’s Response: Management agrees with the finding.; Actions Taken or Planned on the Finding: The delinquent deposit was made in May 2024. This finding is closed.

Corrective Action Plan

U. S. Department of Housing and Urban Development. Heritage Grove, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: MCK CPAs & Advisors, Decatur, Illinois. Audit period: Year ended June 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. Findings and Questioned Costs - Federal Award Programs Audit: Department of Housing and Urban Development: Supportive Housing for Persons with Disabilities Program (Section 811), Assistance Listing # 14.181: 2024 - 003 Recommendation: Finding is closed as of June 30, 2024. If the Department of Housing and Urban Development has questions regarding this plan, please call Mary Garrison, Heritage Grove, Inc. at (217) 362-6262.

Other Findings in this Audit

571930 2024-004

Significant Deficiency
1148371 2024-003

Significant Deficiency
1148372 2024-004

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.181	Supportive Housing for Persons with Disabilities	$97,432