Finding 61518 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-10-26
Audit: 50076
Organization: Juliette Corporation (MA)
Auditor: Cohnreznick LLP

AI Summary

  • Issue: The project failed to make required monthly deposits of $141,051 to the replacement reserve.
  • Impacted Requirement: This violates the regulatory agreement mandating these deposits.
  • Recommended Follow-Up: Management should monitor the replacement reserve account to ensure compliance with deposit requirements.

Finding Text

2022-1 ? Delinquent deposits to the replacement reserve Statement of Condition During the year ended June 30, 2022, the project did not make the required monthly deposits to the replacement reserve in the amount of $141,051. The project is required to make monthly deposits to the reserve in the amount of $141,051. Criteria The regulatory agreement requires that the project make monthly deposits to its replacement reserve. Cause The Client did not properly monitor the replacement reserve account to determine that the deposits were not made. Effect or Potential Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the regulatory agreement. Recommendation Management should properly monitor the replacement reserve account to ensure deposits are made as required. Reporting View of Responsible Officials Management of Juliette Corporation agrees with the finding and the auditor?s recommendations have been adopted.

Corrective Action Plan

U.S. Department of Health and Human Services: Juliette Corporation. respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent accounting firm: CohnReznick LLP South Shore Executive Park 10 Forbes Road Braintree, MA 02184 Audit period: July 1, 2021 ? June 30, 2022 The finding from the June 30, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. Federal Award Findings and Questioned Cost Material Weakness Item 2022-001 - Federal Funding Accountability and Transparency Act (FFATA) Reporting Issue: During the year ended June 30, 2022, the Project did not make all the required monthly deposits to the replacement reserve in the amount of $141,051. The project is required to make monthly deposits to the reserve in the amount of $141,051 for the year ended June 30, 2022. Recommendation: Management should properly monitor the replacement reserve account to ensure deposits are made as required. Action Taken: Management of Juliette Corporation agrees with the finding and the auditor?s recommendations have been adopted. Management added internal controls to monitor that required monthly deposits are being made timely.

Categories

Reporting

Other Findings in this Audit

  • 637960 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $699,455
14.157 Supportive Housing for the Elderly $304,047