Caritas Manor, Inc.Non-Profit

Finding 2024-001 – Special Tests and Provisions Criteria In accordance with the Uniform Guidance, any surplus cash in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in the residual receipts account within 90 days following the end of the fiscal year. Condition For the fiscal year ended September 30, 2023, the project had surplus cash in the amount of $15,693 that is required to be deposited in the residual receipts account. The deposit has not been made. Effect The required residual receipts deposit has not been made. Cause The project has failed to make the required residual receipts deposit. Questioned Costs $15,693. Context The project has not made the required residual receipts deposit. Repeat Finding No. Recommendation Management should ensure that the required residual receipts deposit is made in a timely manner. Auditor Noncompliance Code B – Failure to make the required residual receipts deposits; Special Tests and Provisions – Residual Receipts account. Finding Resolution Status Open. Reporting Views of Responsible Officials Management will ensure that the required residual receipts deposit is made timely.

Finding 2022-001: Other Finding Criteria In accordance with the Uniform Guidance, the project?s annual single audit reporting packages are required to be submitted in the Federal Audit Clearinghouse website in a timely manner, which is the earlier of 30 days after the auditors? report or 9 months after the project?s fiscal year end. Condition The project has not filed their prior year annual single audit reporting package in the Federal Audit Clearinghouse website. Effect The required submission of the project?s annual single audit reporting package has not been filed. Cause The cause was not determined. Questioned Costs N/A. Context The project engaged its auditors to file its annual single audit reporting package in the Federal Audit Clearinghouse website. However, the filing has not been completed. Repeat Finding No. Recommendation Management should ensure that the required submission of the project?s annual single audit reporting packages are filed timely. Auditor Noncompliance Code Z ? other; Other Finding. Finding Resolution Status Unresolved. Reporting Views of Responsible Officials Management will ensure that they submit the project?s annual single audit reporting package in the Federal Audit Clearinghouse website.

Finding 2022-002: Special Tests and Provisions ? Residual Receipts Account Criteria In accordance with the Uniform Guidance, any surplus cash in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in the residual receipts account within 90 days following the end of the fiscal year. Condition For the fiscal year ended September 30, 2021, the project had surplus cash in the amount of $31,654 that is required to be deposited in the residual receipts account. The deposit was not made until December 10, 2022. Effect The required residual receipts deposit was not made timely. Cause The project did not make the required residual receipts deposit until December 10, 2022. Questioned Costs $31,654. Context The project did not make the required residual receipts deposit until December 10, 2022. Repeat Finding No. Recommendation Management should ensure that procedures to make the required residual receipts deposit on a timely manner are followed. Auditor Noncompliance Code B ? Failure to make required residual receipts deposits; Special Tests and Provisions ? Residual Receipts Account. Finding Resolution Status Resolved. The required residual receipts deposit was made on December 10, 2022. Reporting Views of Responsible Officials Management will ensure that the required residual receipts deposits are made timely.

Finding 2021-1 - Special Test and Provisions ? Residual Receipts Account U.S. Department of Housing and Urban Development Program Name: Section 202 Capital Advance Program CFDA # 14.157 Grant Number: 065-EE003-CA Repeat Finding Yes 2020-001 Criteria: In accordance with Congressional appropriations legislation, any balance in the residual receipts account greater than $250 per unit must be remitted to HUD?s Accounting Center upon ?termination? of the PRAC. Termination is defined as expiration of the contract term which for most PRAC?s is the annual contract anniversary date. Condition: On May 28, 2021, the corporation?s PRAC annual contract anniversary date, an excess of residual receipts in the amount of $34,982 was due to HUD. The remittance was made subsequent to the due date. The local HUD office has approved the transfer. Cause: Procedures relating to the remittance of excess residual receipts due to HUD were not followed. Effect: The remittance of excess residual receipts due to HUD was not made timely. Recommendation: Management should ensure that the procedures are followed to make any remittance of excess residual receipts due to HUD. Views of Responsible Officials: Management of Caritas Manor, Inc. agrees with the findings. See additional comments in the Corrective Action Plan at page 49.

Finding 2021-2 ? Strengthen Controls over submission of Single Audit Reporting Package to the Federal Audit Clearinghouse Criteria: Office of Management and Budget (OMB) Circular A-133 (Uniform Guidance), Audits of States, Local Governments, and Non-Profit Organizations, ?.320, requires the Caritas Manor, Inc. to submit its Single Audit Reporting Package to the federal clearinghouse the sooner of no later than 9 months after fiscal year-end, (with COVID-19 extensions in certain year ends) or 30 days from audit report release date. Condition: The federal reporting deadline for the Caritas Manor, Inc.?s 2019, 2020 and 2021 Single Audit Reporting Package was not met. Cause: The Caritas Manor, Inc.?s internal controls failed to detect the submission requirement of its Single Audit Reporting Package. Effect: The late submission affects all federal programs the Caritas Manor, Inc. administered. Recommendation: The Caritas Manor, Inc. should improve its controls over the financial reporting process to ensure timely submission of its Single Audit Reporting Package to the federal audit clearinghouse. Response: Management of Caritas Manor, Inc. agrees with the findings. See additional comments in the Corrective Action Plan at page 49.

Findings and Questioned Costs ? Major Federal Award Program Audit U.S. Department of Housing and Urban Development Program Name: Section 202 Capital Advance Program CFDA # 14.157 Grant Number: 065-EE003-CA Finding 2020-001 Special Test and Provisions ? Residual Receipts Account Criteria In accordance with Congressional appropriations legislation, any balance in the residual receipts account greater than $250 per unit must be remitted to HUD?s Accounting Center upon ?termination? of the PRAC. Termination is defined as expiration of the contract term which for most PRAC?s is the annual contract anniversary date. Condition On May 28, 2020, the corporation?s PRAC annual contract anniversary date, an excess of residual receipts in the amount of $10,533 was due to HUD. The remittance was made on December 8, 2020. Effect The remittance of excess residual receipts due to HUD was not made timely. Cause Procedures relating to the remittance of excess residual receipts due to HUD were not followed. Recommendation Management should ensure that the procedures are followed to make any remittance of excess residual receipts due to HUD. Reporting Views of Responsible Officials Management will ensure that the remittance of excess residual receipts due to HUD, if any, will be made timely.

Findings and Questioned Costs ? Major Federal Award Program Audit U.S. Department of Housing and Urban Development Program Name: Section 202 Project Rental Assistance Contract CFDA # 14.157 Grant Number: 065-EE003-CA Finding 2020-002 Eligibility for individuals- amount of benefits Criteria In accordance with 24 CFR Part 5 Subpart F, when calculating adjusted income for a tenant, unreimbursed medical expenses is a mandatory deduction. Condition In the sample of tenants tested for eligibility, there was one instance where amounts spent on Medicare premiums was not deducted from income when calculating the adjusted income. Effect The benefit amount was not calculated properly and resulted in improper payments that were made in the amount of a $258 subsidy underpayment and tenant overpayment. Cause Procedures relating to the calculation of the tenant?s rental assistance were not followed. Recommendation Management should ensure that the procedures are followed to properly calculate tenant rent subsidy. Reporting Views of Responsible Officials Management will ensure that the remittance of excess residual receipts due to HUD, if any, will be made timely.

GSA_MIGRATION