Finding 614852 (2022-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-06-29
Audit: 33862
Organization: St. Patrick Apartments Ii, Inc. (MD)
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: The organization failed to deposit $12,564 in residual receipts within the required 90 days after year-end, violating HUD regulations.
  • Impacted Requirements: This finding indicates noncompliance with the Regulatory Agreement, marking it as a repeat issue from the previous year.
  • Recommended Follow-Up: Management should implement stronger internal controls to ensure timely deposits of residual receipts in the future.

Finding Text

Finding No. 2022-001; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria Residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended December 31, 2022, management did not make the required residual receipts reserve deposit in the amount of $12,564 within 90 days of year end, as required by HUD. The residual receipts amount was deposited on June 30, 2022. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Corporation is not in compliance with the requirements of the Regulatory Agreement. Questioned Costs $12,564 Identification as a Repeat Finding Finding No. 2021-001 Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits Finding Resolution Status: Resolved Views of Responsible Officials Management has made the required residual receipts deposit based upon December 31, 2021, surplus cash in the amount of $12,564 on June 30, 2022.

Categories

Questioned Costs HUD Housing Programs Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 38410 2022-001
    Material Weakness Repeat
  • 38411 2022-002
    Material Weakness
  • 614853 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $4.60M