Finding 627501 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-02-05

AI Summary

  • Core Issue: The Corporation missed one monthly deposit of $1,250 to the reserve for replacements, resulting in an underfunded account.
  • Impacted Requirements: The failure to make all 12 deposits violates the terms of the Regulatory Agreement.
  • Recommended Follow-Up: Ensure all future deposits are made on time and monitor compliance with the Regulatory Agreement.

Finding Text

Finding Type - Immaterial noncompliance with major program requirements Title and Assistance Listing Number of Federal Program - 14.157 - U. S. Department of Housing and Urban Development: Supportive Housing for the Elderly Finding Resolution Status - Resolved Information on Universe and Population Size - The population includes all required deposits to the replacement reserve for fiscal year 2022. Sample Size Information - N/ A Identification of Repeat Finding and Finding Reference Number - N/ A Criteria - The Corporation should have made 12 monthly deposits of $ 1,250 into the reserve for replacements account, as required by the Regulatory Agreement. Statement of Condition - The Corporation failed to make the required reserve for replacements deposits in the current fiscal year. Cause - The Corporation failed to monitor the cash requirements of the reserve for replacement account specified by the Regulatory Agreement. Effect or Potential Effect - The replacement reserve account was underfunded in the current fiscal year by $ 1,250. Auditor Noncompliance Code - N - Reserve for replacements deposits Reporting Views of Responsible Officials - Management agrees with the finding as reported. Context - During testing of required deposits to the reserve for replacement account, it was noted that the Corporation made only 11 of the required 12 monthly deposits of $ 1,250 during fiscal year 2022. Recommendation - All required deposits should be made in accordance with the Regulatory Agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management should make the required reserve for replacements deposits in the current fiscal year. Response Indicator ? Agree Completion Date - July 20,2022 Response - Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. The missing deposit was made on July 20,2022.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 51059 2022-001
    -
  • 51060 2022-002
    Significant Deficiency
  • 627502 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $128,974