Finding 972248 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-05-03
Audit: 305426
Organization: Gallagher Mansion, INC (MD)

AI Summary

  • Core Issue: Two monthly payments to the replacement reserve were missed, leading to underfunding.
  • Impacted Requirements: Monthly payments are required by the regulatory agreement to maintain the replacement reserve.
  • Recommended Follow-Up: Implement a system to ensure timely monthly transfers to the replacement reserve account.

Finding Text

Finding 2023-002: Supportive Housing for the Elderly; CFDA 14.157 Information on the Universe Population Size 12 monthly payments. Sample Size Information 12 monthly payments. Criteria The regulatory agreement requires monthly payments to fund the replacement reserve. Statement of Condition Two monthly payments were not made to the replacement reserve during the year. Cause Change in managing agent during the fiscal year. Effect or Potential Effect The replacement reserve was underfunded by a total of $1,698. Auditor Non-Compliance Code N – Reserve for Replacements Deposits Questioned Costs There were no known questioned costs. Recommendation We recommend that the Entity reinstate a system of monthly transfers to the account. Repeat Finding No Views of Responsible officials See corrective action plan.

Categories

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Other Findings in this Audit

  • 395805 2023-001
    Significant Deficiency
  • 395806 2023-002
    Significant Deficiency
  • 972247 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $500,000
14.157 Supportive Housing for Persons with Disabilities $359,470