Finding 9614 (2023-002)

- Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-01-24

AI Summary

  • Core Issue: The residual receipts balance exceeds the compliance amount due to unapproved deposits of surplus cash.
  • Impacted Requirements: Compliance with residual receipts regulations was not maintained, leading to a questioned cost of $6,209.
  • Recommended Follow-Up: Conduct staff training to ensure understanding of residual receipts compliance requirements.

Finding Text

Statement of Condition: Residual receipts balance is over the calculated compliance amount. Cause: The prior years surplus cash amount was deposited into the residual receipts account. However, approval was not requested to pay excess residual receipts. Effect: Residual receipts balance is over the compliance amount. Auditor Non-Compliance Code: Z. Questioned Costs: $6,209. Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations are in the process of being implemented. Context: Review of the residual receipt activity showed that the client had deposited surplus cash money into the account; however, approval was never not sought to pay back excess residual receipts. Recommendation: Training of staff should be performed to bring the staff up to date with all residual receipts compliance requirements.

Corrective Action Plan

Recommendation: Training of staff should be performed to bring the staff up to date with all residual receipts compliance requirements . Action Taken: Lorien Homes, Inc. did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account being greater than its compliance amount. The Organization will request approval to pay back excess residual receipts.

Categories

Questioned Costs Cash Management HUD Housing Programs Reporting

Other Findings in this Audit

  • 9613 2023-001
    Material Weakness Repeat
  • 9615 2023-003
    -
  • 586055 2023-001
    Material Weakness Repeat
  • 586056 2023-002
    - Repeat
  • 586057 2023-003
    -

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $27,343