FAC Explorer

Finding 585658 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-01-19
Audit: 12592
Organization: Catholic Charities (OR)
Auditor: Kernutt Stokes

AI Summary

  • Core Issue: There is a significant deficiency in internal controls, leading to failure to make required monthly deposits into the replacement reserve fund.
  • Impacted Requirements: HUD regulations mandate monthly deposits of $873, totaling $10,476 annually, which were not met.
  • Recommended Follow-Up: Management should establish and enforce internal controls to ensure compliance with the deposit requirements moving forward.

Finding Text

Type of Findings: Significant deficiency in internal control over compliance and instance of immaterial noncompliance. Federal Program: HUD Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing #14.181. Compliance Requirement: Replacement Reserve Criteria: Renaissance Court, Inc.'s regulatory agreement with HUD requires monthly deposits of $873 into the replacement reserve fund. Total deposits required annually is $10,476. Condition: The monthly required deposit of $873 and the total annually required deposit of $10,476 were not deposited into replacement reserve fund. Cause: The organization has suffered recuring losses from operations which have negatively impacted cash flows. Effect: The effect is immaterial non-compliance with the terms of the HUD programs listed above. Questioned Costs: None Repeat Finding: No. Context: We reviewed the Replacement Reverse Fund and noticed there was no monthly required deposit made in the Fund during fiscal year 2023. Recommendation: We recommend management design and implement internal controls over compliance to ensure the amount of $873 is deposited monthly into the Replacement Reserve account as required by HUD. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 9216 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.44M
14.239 Home Investment Partnerships Program $3.32M
10.405 Farm Labor Housing Loans and Grants $1.68M
97.088 Disaster Assistance Projects $1.17M
19.510 U.s. Refugee Admissions Program $694,009
10.415 Rural Rental Housing Loans $537,299
93.576 Refugee and Entrant Assistance_discretionary Grants $454,315
93.567 Refugee and Entrant Assistance_voluntary Agency Programs $434,668
10.427 Rural Rental Assistance Payments $291,532
16.589 Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Assistance Program $166,400
14.181 Supportive Housing for Persons with Disabilities $142,611
10.181 Ams - Pandemic Response and Safety Grants Program/ Ams - Farmworker and Meatpacking Worker Relief Grant Program $119,847
93.268 Immunization Cooperative Agreements $90,083
14.191 Multifamily Housing Service Coordinators $77,825
93.566 Refugee and Entrant Assistance_state Administered Programs $73,053
93.556 Promoting Safe and Stable Families $40,490
14.169 Housing Counseling Assistance Program $40,310
93.598 Services to Victims of A Severe Form of Trafficking $15,820
14.195 Section 8 Housing Assistance Payments Program $8,280
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $4,109