FAC Explorer

Finding 60085 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-10-23
Audit: 55703
Organization: Dogwood Manor Apartments, Inc. (TN)
Auditor: Johnson Hickey & Murchison PC

AI Summary

  • Core Issue: The Organization mistakenly paid for services not received due to improper segregation of utility bills.
  • Impacted Requirements: Internal controls over cash disbursements were not followed, leading to erroneous disbursements.
  • Recommended Follow-Up: Management should strengthen controls on cost identification to prevent future errors.

Finding Text

Finding 2022-001 Condition The Organization paid for services rendered to another Organization. Criteria The Organization?s internal control over cash disbursements of project funds requires proper cost identification and segregation before payment. Cause Utility bills were not properly segregated before processing. Effect Organizational funds were erroneously disbursed for services it did not receive. Recommendation Management should re-evaluate controls around cost identification. Views of management Management concurs. Auditors? summary of the auditee?s comments on the findings and recommendations Management will re-evaluate controls around cost identification in efforts to minimize potential error going forward.

Corrective Action Plan

Name of auditee: Dogwood Manor Apartments, Inc. HUD auditee identification number: 087-EE073 Name of audit firm: Johnson, Hickey, & Murchison, P.C. Period covered by the audit: Year ended June 30, 2022 Corrective Action Plan prepared by: Name: Myra Walker Position: Director of Housing Telephone 931-432-4111 Findings ? Financial Statements Findings Reference Number: 2022-001 Federal Agency: Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly CFDA Number: 14.157 Management?s response: Management concurs with the finding. Corrective Action Plan: Management will review controls over proper cost identification and segregation. Implementation Date: Immediately.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $2.87M