Finding 59879 (2022-001)

-
Requirement
P
Questioned Costs
$1
Year
2022
Accepted
2023-07-04

AI Summary

  • Core Issue: The Project had a shortfall of $1,414 in the security deposit trust account as of December 31, 2022.
  • Impacted Requirements: The HUD regulatory agreement mandates that security deposits must be maintained in a separate trust account equal to or exceeding the liability.
  • Recommended Follow-Up: Ensure all tenant security deposits are deposited directly into the trust account to prevent future violations; the recent deposit has resolved the shortfall.

Finding Text

Finding #2022-001: Section 202 Capital Advance, CFDA 14.157 Condition: The Project?s liability for security deposits exceeded the security cash account by $1,414 at December 31, 2022. Criteria: The HUD regulatory agreement requires the Company maintain the security deposit in a trust account separate from other funds in an amount which at all times equals or exceeds the outstanding security deposit obligation. Effect: The Company is in violation of the terms of the HUD Regulatory Agreement governing security deposits. Questioned Cost: $1,414 Cause: Oversight. Recommendation: We recommend the Project deposit all tenant security deposits directly into the trust account for security deposits in an amount sufficient to cover the security deposit liability. Auditor?s Comment: The Company deposited $1,414 on March 27, 2023 into the security deposit trust account. Security deposit shortfall is corrected. Finding 2022-001 cleared.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: Plan Homes, Inc No. 112-HD007 Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2022 Compliance Review A. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN FINDING 1: Section 202 Capital Advance, CFDA 14:157 CORRECTIVE ACTION COMPLETED: On March 27, 2023 the Company deposited $1,414 into the security deposit account. Finding 2022-001 Cleared. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Ms. Connie Quillen, Vice President, Asset Living.

Categories

Questioned Costs 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 $54,212