FAC Explorer

Finding 59727 (2022-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-02-16
Audit: 55122
Organization: Black Hills Works, Inc. (SD)
Auditor: Ketel Thorstenson LLP

AI Summary

  • Issue: Residual receipts reserves were not deposited within the required 60 days after year-end.
  • Impact: This affects compliance with U.S. Department of Housing and Urban Development regulations for Section 8 Subsidy.
  • Next Steps: Implement an internal control system to ensure timely deposits moving forward.

Finding Text

FINDING: Residual Receipts Reserves Federal Programs Affected: Section 8 Subsidy ALN #14.181 Compliance Requirements: Special Tests and Provisions Questioned Costs: None Condition and Cause: During our engagement, we noted deposits of residual receipts reserves were not made within 60 days of year-end as required by U.S. Department of Housing and Urban Development. Criteria and Effect: U.S. Department of Housing and Urban Development requires the Organization to make deposits to the residual receipts reserves within 60 days of year-end. Repeat Finding from Prior Year: N/A Recommendation We recommend the Organization develop an internal control to track compliance with this compliance requirement. Response/Correction Action Plan: Management is in agreement with the finding. See Correction Action Plan.

Corrective Action Plan

Responsible Individuals: Mary R. Duncan, CPA, CGMA, Chief Financial Officer and Cassondra Bolstad PMP, Equipment and Facilities Operations Manager Corrective Action Plan: The Organization has implemented practices for deposits of residual receipts reserves to be made within 60 days of year-end as required by U.S. Department of Housing and Urban Development. Anticipated Completion Date: Current fiscal year 2022, as Equipment and Facilities Operations Manager position was developed and hired in November 2021.

Categories

HUD Housing Programs Special Tests & Provisions Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 59725 2022-001
    Material Weakness Repeat
  • 59726 2022-002
    Material Weakness Repeat
  • 59728 2022-001
    Material Weakness Repeat
  • 59729 2022-002
    Material Weakness Repeat
  • 636167 2022-001
    Material Weakness Repeat
  • 636168 2022-002
    Material Weakness Repeat
  • 636169 2022-003
    Significant Deficiency
  • 636170 2022-001
    Material Weakness Repeat
  • 636171 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $385,963
14.275 Housing Trust Fund $338,058
10.551 Supplemental Nutrition Assistance Program $53,199
93.630 Developmental Disabilities Basic Support and Advocacy Grants $46,250
93.498 Provider Relief Fund $29,645
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $18,821
45.025 Promotion of the Arts_partnership Agreements $16,215