Finding 61319 (2022-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-29
Audit: 54389
Auditor: Bbd LLP

AI Summary

  • Core Issue: The Corporation failed to deposit the required funds into the replacement reserve account, contributing to a significant internal control deficiency.
  • Impacted Requirements: Monthly deposits of $2,326 (in 2022) and $2,440 (December 2022) were not met, with only $4,652 deposited instead of the required $28,026.
  • Recommended Follow-Up: Implement procedures to ensure timely monthly deposits to the reserve account as mandated by the Regulatory Agreement.

Finding Text

2022-02 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: CFDA #14.157 ? Supportive Housing for the Elderly Type of Finding: Noncompliance\ significant deficiency in internal control over compliance Criteria The Corporation, in accordance with the Regulatory Agreement, is required to maintain a reserve for replacements. The required minimum monthly deposit into this account is $2,326 through November 2022 and $2,440 for December 2022. Condition For the year ended December 31, 2022, a total of $28,026 was to be deposited into the replacement reserve account. However, only $4,652 was deposited, representing two monthly payments. Questioned Costs None Cause Due to turnover in the accounting department staff, the required monthly deposits were not made in a timely fashion. Effect The Corporation did not make the deposits into the replacement reserve account as required by the Regulatory Agreement. Recommendation The Corporation should have procedures in place to ensure all required monthly deposits are made to the reserve for replacements. Views of Responsible Officials and Planned Corrective Action See accompanying Corrective Action Plan.

Corrective Action Plan

2022-02 Audit Finding

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 61320 2022-002
    Significant Deficiency Repeat
  • 637761 2022-002
    Significant Deficiency Repeat
  • 637762 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $600,000
14.157 Supportive Housing for the Elderly $147,282