WORTHINGTON SENIOR HOUSING, INC.Non-Profit

Condition: We noted that the required deposit to the reserve for replacements account was not made before the end of the current fiscal year. This finding was reported in the previous year as number 2023-001. Effect: The Organization was not in compliance with the requirement to make the required deposit into the reserve for replacements account in a timely manner. Cause: The minimum required deposit was not made until after the current fiscal year end. Management was aware of the amount required to be deposited; however, there were insufficient funds available in the operating account at year end. Criteria: The Organization should make the required deposit to the reserve for replacements account on a timely basis.Questioned Costs: There are no questioned costs associated with this finding.ontext: $2,000 of the required deposit should have been made by June 30, 2024. Recommendation: We recommend that the Organization ensure that the required deposit to the reserve for replacements account be made on a timely basis.Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the auditor’s recommendations will be adopted.

Condition: We noted that the required deposit to the reserve for replacements account was not made before the end of the current fiscal year. Effect: The Organization was not in compliance with the requirement to make the required deposit into the reserve for replacements account in a timely manner. Cause: The minimum required deposit was not made until after the current fiscal year end. Management was aware of the amount required to be deposited; however, there were insufficient funds available in the operating account at year end. Criteria: The Organization should make the required deposit to the reserve for replacements account on a timely basis. Questioned Costs: There are no questioned costs associated with this finding. Context: $1,681 of the required deposit should have been made by June 30, 2023. Recommendation: We recommend that the Organization ensure that the required deposit to the reserve for replacements account be made on a timely basis. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the auditor’s recommendations will be adopted.

2019-001 Lack of controls over compliance of federal program Condition: The Organization has established internal controls over compliance for the major federal program; however, these controls failed for procurement policy and residual receipts account deposit. Effect: The Organization did not follow it?s established controls for compliance with the requirement to have a written procurement policy and the requirements to make the residual receipts account deposit within 60 days of the previous year end, and as a result, the Organization is not in compliance with these requirements of the federal program. Cause: The Organization bypassed the established controls over these compliance requirements. Criteria: The Organization should have control procedures in place to ensure all compliance requirements applicable to the federal program are met. Questioned Costs: There are no questioned costs associated with this finding. Context: During our examination of compliance with all program requirements we noted two instances of internal controls not preventing noncompliance with the requirements of the federal program. Recommendation: We recommend that the Organization ensure that the appropriate controls established over the federal program compliance requirements are being followed. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the auditor?s recommendations will be adopted.

2019-002 Improper procurement policy Condition: The Organization has not updated its procurement policy to comply with the requirements of the Uniform Guidance. Effect: The Organization has not implemented a policy to ensure compliance with the requirements of the Uniform Guidance in respect to Procurement/Suspension and Debarment and is not in compliance with these requirements of the federal program. Cause: The Organization?s board of directors and it?s management agent did not update the written procurement policies to be compliant with the Uniform Guidance. Criteria: The Organization must establish a written procurement policy as required by the Uniform Guidance to ensure all compliance requirements applicable to the federal program are met. Questioned Costs: There are no questioned costs associated with this finding. Context: During the course or our audit we noted no improper procurements made by the Organization; however, there is no updated written policy governing these procurements as required by the Uniform Guidance. Recommendation: We recommend that the Organization adopt a written procurement policy to ensure that the federal program compliance requirements are being followed. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the auditor?s recommendations will be adopted.

2019-003 Required residual receipts deposits was not made before the 60-day after year-end deadline Condition: We noted that the required deposit to the residual receipts reserve was made after the 60-day deadline following the 2018 fiscal year end. Effect: The Organization was not in compliance with the requirement to make the required deposits into the residual receipt reserve in a timely manner. Cause: This was the first year the Organization had residual receipts and the deposit was made when the annual audit was submitted to HUD. Criteria: The Organization should have procedures in place to ensure the required deposit to the residual receipts account is made on a timely basis. Questioned Costs: There are no questioned costs associated with this finding. Context: The residual receipts account deposit was made 101 days after the June 30, 2018 fiscal year end. Recommendation: We recommend that the Organization ensure that all the required deposits to the residual receipts account be made on a timely basis. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the auditor?s recommendations will be adopted.

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