Finding 59920 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-28
Audit: 55445
Auditor: M Group LLP

AI Summary

  • Core Issue: Audited financial statements were not submitted to the FASSUB system on time.
  • Impacted Requirements: Compliance with HUD regulations requires submission within 90 days of year-end.
  • Recommended Follow-Up: Ensure timely submission of audited financial statements in the future.

Finding Text

Finding #2022-002: Section 202 Capital Advance, CFDA 14.157 Condition: The audited financial statements were not entered into the FASSUB system timely. Criteria: The HUD regulatory agreement requires the audited financial statements to be prepared in accordance with GAAP and filed into the FAASUB system within 90 days of year end. Effect: The Company is in violation of the compliance requirement of its major federal program. Questioned Cost: $0 Cause: Insufficient funds to pay prior year audit fees. Recommendation: We recommend that the audited financial statements be submitted into the FASSUB system within 90 days of year end. Auditor?s Comment: HUD approved a residual receipts withdrawal to pay outstanding audit fees. The financial data was submitted into the FASSUB system.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: Cliff View Village, Inc. No. 112-EE017 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 2: Section 202 Capital Advance, CFDA 14:157 CORRECTIVE ACTION COMPLETED: The audited financial statements were not entered into the FAASUB system within 90 days prior to year end. The Company did not have available funds to pay prior year audit fees. HUD approved a residual receipts withdrawal to pay outstanding audit fees. 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

HUD Housing Programs Cash Management

Other Findings in this Audit

  • 59919 2022-001
    Significant Deficiency
  • 636361 2022-001
    Significant Deficiency
  • 636362 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $86,725