FAC Explorer

Finding 574615 (2024-001)

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Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-08-25
Audit: 364877
Organization: Mdbm - Drake Senior Housing Corporation (MI)
Auditor: Boisvenu & Company PC

AI Summary

  • Core Issue: The required deposit for residual receipts was not made by the February 29, 2024 deadline.
  • Impacted Requirements: This failure means MDBM – Drake Senior Housing Corporation is not complying with the regulatory agreement as outlined in 24 CFR section 891.600(e).
  • Recommended Follow-Up: Implement controls to ensure timely deposits or request waivers if unable to comply.

Finding Text

Compliance Requirement: Special Tests and Provisions – Residual Receipts Funds Condition: The fiscal year December 31, 2023 residual receipts deposit was not made into the residual receipts account. Criteria: Following the expiration of the fiscal year, a deposit shall be made in an amount equal to the annual computation of surplus cash within 60 days following the end of the fiscal year (24 CFR section 891.600(e)). Therefore, the fiscal year end December 31, 2023 deposit should be made by February 29, 2024. Cause/Effect: Management did not deposit the residual receipts within the 60 day due date. As a result, MDBM – Drake Senior Housing Corporation is not in compliance with the Regulatory Agreement. Questioned Cost: Undetermined Recommendation: Every effort should be made to comply with the residual receipts requirement to make deposits into the account within 60 days following the end of the fiscal year or request waivers by the due date. Views of Responsible Officials and Planned Corrective Actions: Every effort will be made to establish and implement controls to assure that deposits are made within the 60 day allotted period.

Corrective Action Plan

CORRECTIVE ACTION PLAN YEAR ENDED DECEMBER 31, 2024 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT MBDM – Drake Senior Housing Corporation respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: Boisvenu & Company, P.C., 30600 Telegraph Road, Suite 1300, Bingham Farms, Michigan 48025 Audit period: January 1, 2024 through December 31, 2024 The finding from the December 31, 2024 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. 2024-001 Compliance Requirement: Special Tests and Provisions – Residual Receipts Funds Supportive Housing for the Elderly (Section 202), Assistance Listing 14.157 Recommendation: Every effort should be made to comply with the residual receipts requirement to make deposits into the account within 60 days following the end of the fiscal year or request waivers by the due date. Planned Corrective Actions: Every effort will be made to deposit the required amount within the allotted 60 day period. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Sridevi Nistala at (248) 626-6100. Sincerely, MBDM – Drake Senior Housing Corporation Elizabeth Goleski, CEO

Categories

HUD Housing Programs Special Tests & Provisions Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $3.31M
14.195 Project-Based Rental Assistance (pbra) $1.01M
14.191 Multifamily Housing Service Coordinators $81,144