FAC Explorer

Audit 1002

FY End
2023-06-30
Total Expended
$1.49M
Findings
4
Programs
2
Organization: Nlh 5 (NM)
Year: 2023 Accepted: 2023-10-23
Auditor: Palmer & CO P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
456 2023-001 - - N
457 2023-001 - - N
576898 2023-001 - - N
576899 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.43M Yes 1
14.195 Section 8 Housing Assistance Payments Program $63,477 - 1

Contacts

Name Title Type
CN81CQC7JHE1 Bobby Griffith Auditee
5053256515 Margi Palmer Auditor
No contacts on file

Notes to SEFA

Title: Insurance Coverage Accounting Policies: Note A - Basis of Presentation The accompanying schedule of expenditures of federal awards includes both the rent assistance payments for the year ended June 30, 2023 and the outstanding capital advance under the program at June 30, 2023, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Because the schedule presents only a selected portion of the operations of NLH 5, it is not intended to and does not present the financial position, changes in net assets, or cash flows of NLH 5. Note B - Summary of Significant Accounting Principles Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. De Minimis Rate Used: N Rate Explanation: NLH 5 did not elect to use the 10% de minimis indirect cost rate. Property liability and rent revenue loss insurance policies in effect during the year satisfy the minimum coverage requirements per the Capital Advance

Finding Details

Finding 2023-001
Finding 2023-001 – Special Tests and Provisions – Reserve for Replacement Federal program information: Title: Section 811 Capital Advance CFDA Number: 14.181 Resolution Status: Resolved Information on Universe Population Size: Population size is the total amount in the Reserve for Replacement account at year-end, June 30, 2023. Sample Size Information: Reserve for Replacement ending balance at June 30, 2023. Identification of Repeat Finding and Finding Reference Number: This is a new finding for the property. Criteria: Total cash of $5,022 was required to be deposited into the Reserve for Replacement account by June 30, 2023. Statement of Condition: As of June 30, 2023, the Reserve for Replacement only had $4,604 deposited during the year. Cause: Management did not perform the Reserve for Replacement deposit for one month. Effect or Potential Effect: The project was not in compliance with the Capital Advance and current HUD regulations, the project’s Reserve for Replacement was under-funded for the current year by $418. Auditor Non-Compliance Code: N Questioned Cost: $418 Reporting Views of Responsible Officials: Management agrees with the Reserve for Replacement calculations and is aware of the current deposit required to the Reserve for Replacement. Recommendation: Management should implement internal controls to make any required deposits before the year-end deadline. Auditor’s Summary of Auditee’s Comments on the Findings and Recommendations: Completion Date: Management transferred an additional $418 on July 12, 2023. Response: Funds will be transferred from the operating account to the reserve for replacement account as soon as they are available.
Finding 2023-001
Finding 2023-001 – Special Tests and Provisions – Reserve for Replacement Federal program information: Title: Section 811 Capital Advance CFDA Number: 14.181 Resolution Status: Resolved Information on Universe Population Size: Population size is the total amount in the Reserve for Replacement account at year-end, June 30, 2023. Sample Size Information: Reserve for Replacement ending balance at June 30, 2023. Identification of Repeat Finding and Finding Reference Number: This is a new finding for the property. Criteria: Total cash of $5,022 was required to be deposited into the Reserve for Replacement account by June 30, 2023. Statement of Condition: As of June 30, 2023, the Reserve for Replacement only had $4,604 deposited during the year. Cause: Management did not perform the Reserve for Replacement deposit for one month. Effect or Potential Effect: The project was not in compliance with the Capital Advance and current HUD regulations, the project’s Reserve for Replacement was under-funded for the current year by $418. Auditor Non-Compliance Code: N Questioned Cost: $418 Reporting Views of Responsible Officials: Management agrees with the Reserve for Replacement calculations and is aware of the current deposit required to the Reserve for Replacement. Recommendation: Management should implement internal controls to make any required deposits before the year-end deadline. Auditor’s Summary of Auditee’s Comments on the Findings and Recommendations: Completion Date: Management transferred an additional $418 on July 12, 2023. Response: Funds will be transferred from the operating account to the reserve for replacement account as soon as they are available.
Finding 2023-001
Finding 2023-001 – Special Tests and Provisions – Reserve for Replacement Federal program information: Title: Section 811 Capital Advance CFDA Number: 14.181 Resolution Status: Resolved Information on Universe Population Size: Population size is the total amount in the Reserve for Replacement account at year-end, June 30, 2023. Sample Size Information: Reserve for Replacement ending balance at June 30, 2023. Identification of Repeat Finding and Finding Reference Number: This is a new finding for the property. Criteria: Total cash of $5,022 was required to be deposited into the Reserve for Replacement account by June 30, 2023. Statement of Condition: As of June 30, 2023, the Reserve for Replacement only had $4,604 deposited during the year. Cause: Management did not perform the Reserve for Replacement deposit for one month. Effect or Potential Effect: The project was not in compliance with the Capital Advance and current HUD regulations, the project’s Reserve for Replacement was under-funded for the current year by $418. Auditor Non-Compliance Code: N Questioned Cost: $418 Reporting Views of Responsible Officials: Management agrees with the Reserve for Replacement calculations and is aware of the current deposit required to the Reserve for Replacement. Recommendation: Management should implement internal controls to make any required deposits before the year-end deadline. Auditor’s Summary of Auditee’s Comments on the Findings and Recommendations: Completion Date: Management transferred an additional $418 on July 12, 2023. Response: Funds will be transferred from the operating account to the reserve for replacement account as soon as they are available.
Finding 2023-001
Finding 2023-001 – Special Tests and Provisions – Reserve for Replacement Federal program information: Title: Section 811 Capital Advance CFDA Number: 14.181 Resolution Status: Resolved Information on Universe Population Size: Population size is the total amount in the Reserve for Replacement account at year-end, June 30, 2023. Sample Size Information: Reserve for Replacement ending balance at June 30, 2023. Identification of Repeat Finding and Finding Reference Number: This is a new finding for the property. Criteria: Total cash of $5,022 was required to be deposited into the Reserve for Replacement account by June 30, 2023. Statement of Condition: As of June 30, 2023, the Reserve for Replacement only had $4,604 deposited during the year. Cause: Management did not perform the Reserve for Replacement deposit for one month. Effect or Potential Effect: The project was not in compliance with the Capital Advance and current HUD regulations, the project’s Reserve for Replacement was under-funded for the current year by $418. Auditor Non-Compliance Code: N Questioned Cost: $418 Reporting Views of Responsible Officials: Management agrees with the Reserve for Replacement calculations and is aware of the current deposit required to the Reserve for Replacement. Recommendation: Management should implement internal controls to make any required deposits before the year-end deadline. Auditor’s Summary of Auditee’s Comments on the Findings and Recommendations: Completion Date: Management transferred an additional $418 on July 12, 2023. Response: Funds will be transferred from the operating account to the reserve for replacement account as soon as they are available.