Finding Text
Finding 2022-1 Statement of Condition: During the year, Shalom House paid maintenance personnel wages, totaling $3,099.25, which were the expense of three other Projects. The amount is recorded as a receivable due from the other Projects at December 31, 2022. Criteria: USDA Handbook 2-3560, Chapter 4, Section 4.2 requires separate accountability and states that funds for housing projects managed by the same management company must not be co-mingled. Effect: Noncompliance with RD regulations. Cause: Payroll processing error. Context: Analyzed current year maintenance wages and investigated difference from both prior year expense and budgeted expense. Recommendation: Management should stress proper time entry and payroll processing on a regular basis to insure payroll expense is allocated properly at time of payment and in a timely manner. Questioned costs: $3,099.25 Management's Response and Corrective Action Plan: Management acknowledges that reimbursement for other Project's payroll expense should be processed and collected in a timely manner or payments allocated to the correct Project at time of payment.