Finding 606357 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-07-26
Audit: 32865
Organization: Ebenezer Towers (PA)

AI Summary

  • Core Issue: Funds were mistakenly withdrawn from a restricted account instead of an unrestricted one.
  • Impacted Requirements: Disbursements for non-housing related expenses are not allowed from the project account.
  • Recommended Follow-Up: Ensure prompt reimbursement from the unrestricted account, which has already been completed as of April 20, 2023.

Finding Text

Context The Board of Ebenezer Development Corporation was concerned with community health issues and made a contributed $50,000 to a neighborhood fund to provide support to address these issues. Statement of Condition Ebenezer Development Corporation, the sponsor of Ebenezer Towers Project, distributed funds from the restricted operating account of the Project in error. Funds were available in another unrestricted account of the organization and should have been used from that account. Cause Lack of internal control over restricted accounts allowed funds to be drawn from the wrong account. Effect or Potential Effect Restricted Project funds were improperly withdrawn and will be replaced to the proper account. Identification of Repeat Finding This is not a repeat finding. Criteria This project is not permitted to make disbursements for non-housing related expenditures. Questioned Costs None Reporting Views of Responsible Officials The funds were disbursed from the project account in error and the project will be reimbursed. Recommendation The project should be reimbursed as soon as possible from the separate non project account. Auditor?s Summary of Auditees Comments & Recommendations The Board has committed to making the correction. Completion Date April 20, 2023 Response The Board President and Secretary of Ebenezer Towers met at the bank on April 20, 2023 and completed the transfer.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 29915 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $3.98M
14.195 Section 8 Housing Assistance Payments Program $886,644