FAC Explorer

Finding 9216 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-01-19
Audit: 12592
Organization: Catholic Charities (OR)
Auditor: Kernutt Stokes

AI Summary

  • Core Issue: There is a significant deficiency in internal controls, leading to failure to make required monthly deposits into the replacement reserve fund.
  • Impacted Requirements: HUD regulations mandate monthly deposits of $873, totaling $10,476 annually, which were not met.
  • Recommended Follow-Up: Management should establish and enforce internal controls to ensure compliance with the deposit requirements moving forward.

Finding Text

Type of Findings: Significant deficiency in internal control over compliance and instance of immaterial noncompliance. Federal Program: HUD Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing #14.181. Compliance Requirement: Replacement Reserve Criteria: Renaissance Court, Inc.'s regulatory agreement with HUD requires monthly deposits of $873 into the replacement reserve fund. Total deposits required annually is $10,476. Condition: The monthly required deposit of $873 and the total annually required deposit of $10,476 were not deposited into replacement reserve fund. Cause: The organization has suffered recuring losses from operations which have negatively impacted cash flows. Effect: The effect is immaterial non-compliance with the terms of the HUD programs listed above. Questioned Costs: None Repeat Finding: No. Context: We reviewed the Replacement Reverse Fund and noticed there was no monthly required deposit made in the Fund during fiscal year 2023. Recommendation: We recommend management design and implement internal controls over compliance to ensure the amount of $873 is deposited monthly into the Replacement Reserve account as required by HUD. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.

Corrective Action Plan

Catholic Charities respectfully submits the following corrective action plan for the year ended June 30, 2023. Name & address of public accounting firm: Kernutt Stokes 1600 Executive Parkway, Suite 110 Eugene OR 97401 Audit Period: June 30, 2023 Major Federal Award Findings: Finding Reference #: 2023-001 Significant deficiency Recommendation: We recommend management design and implement internal controls over compliance to ensure the amount of $873 is deposited monthly into the Replacement Reserve account as required by HUD. Corrective Action: Management will work with Cascade Management to improve the internal control procedures to ensure the amount of $873 is deposited monthly into the Replacement Reserve account as required by HUD. Questions regarding this corrective action plan may be directed to Marci Pierce, Chief Financial and Administrative Officer, at (503) 688-2646.

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 585658 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.44M
14.239 Home Investment Partnerships Program $3.32M
10.405 Farm Labor Housing Loans and Grants $1.68M
97.088 Disaster Assistance Projects $1.17M
19.510 U.s. Refugee Admissions Program $694,009
10.415 Rural Rental Housing Loans $537,299
93.576 Refugee and Entrant Assistance_discretionary Grants $454,315
93.567 Refugee and Entrant Assistance_voluntary Agency Programs $434,668
10.427 Rural Rental Assistance Payments $291,532
16.589 Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Assistance Program $166,400
14.181 Supportive Housing for Persons with Disabilities $142,611
10.181 Ams - Pandemic Response and Safety Grants Program/ Ams - Farmworker and Meatpacking Worker Relief Grant Program $119,847
93.268 Immunization Cooperative Agreements $90,083
14.191 Multifamily Housing Service Coordinators $77,825
93.566 Refugee and Entrant Assistance_state Administered Programs $73,053
93.556 Promoting Safe and Stable Families $40,490
14.169 Housing Counseling Assistance Program $40,310
93.598 Services to Victims of A Severe Form of Trafficking $15,820
14.195 Section 8 Housing Assistance Payments Program $8,280
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $4,109