Finding 59922 (2022-002)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-28
Audit: 55446
Auditor: M Group LLP

AI Summary

  • Issue: The Company failed to deposit $120 in excess rent into the residual receipts account as required by the HUD regulatory agreement.
  • Impact: This oversight puts the Company in violation of its regulatory agreement.
  • Follow-up: The Company should ensure compliance by reviewing the regulatory agreement and has already deposited the $120 as of March 28, 2023.

Finding Text

Finding #2022-002: Section 202 Capital Advance, CFDA 14.157 Condition: Under terms of the HUD regulatory agreement, the Company is required to deposit excess rent into the residual receipt account. The Company did not deposit excess rent of $120. Criteria: The HUD regulatory agreement requires the Company to deposits excess rent into the residual receipt account. Effect: The Company is in violation of its Regulatory Agreement. Questioned Cost: $120 Cause: Oversight Recommendation: We recommend the Company deposit $120 into the residual receipts account. Further, we recommend the Company review the regulatory agreement to ensure compliance. Auditor?s Comment: On March 28, 2023, the Company deposited $120 into the residual receipts account. Finding 2022-002 Cleared.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: Cliff View Village II, Inc. No. 112-EE040 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: On September 28, 2023 the Company deposited the delinquent payment of $120 into the residual receipts account for excess rent. 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

  • 59921 2022-001
    Significant Deficiency
  • 59923 2022-003
    Significant Deficiency
  • 636363 2022-001
    Significant Deficiency
  • 636364 2022-002
    -
  • 636365 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $1.65M