Finding 970302 (2023-001)

Significant Deficiency
Requirement
M
Questioned Costs
$1
Year
2023
Accepted
2024-04-22

AI Summary

  • Core Issue: The security deposit cash account was underfunded by $1,513, violating the Regulatory Agreement.
  • Impacted Requirements: Security deposits must be maintained in a separate account equal to or exceeding outstanding obligations.
  • Recommended Follow-Up: Ensure procedures are in place to prevent future underfunding and monitor compliance regularly.

Finding Text

Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 ( Project identification number 034-EE121, December 2005) Auditor non-compliance code: M-Security Deposits Finding resolution status: Resolved Universe population size: 12 months of deposits in the security deposit cash account at least equal to the outstanding obligation. Sample size information: 12 months of deposits in the security deposit cash account at least equal to the outstanding obligation. Statistically valid sample: 3 Name of Federal agency: Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $1,513 Statement of condition 2023-001: At December 31, 2023 and throughout 2023, the security deposit cash account did not equal or exceed the security deposit liability. Criteria: Pursuant to the Regulatory Agreement, residents' security deposits should be funded in a separate account in an amount which shall at all times equal or exceed the aggregate of all outstanding obligations. Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. The security deposit liability is underfunded by $1,513 at December 31, 2023. Cause: Procedures were not in place for the required funding to be made. Recommendation: Management will deposit $1,513 into the security deposit cash account as soon as funds are available. Management's response: Management concurs with the finding and made the required deposit on March 18, 2024.

Categories

Questioned Costs Subrecipient Monitoring

Other Findings in this Audit

  • 393860 2023-001
    Significant Deficiency
  • 393861 2023-001
    Significant Deficiency
  • 970303 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $148,005