Audit 10143

FY End
2023-06-30
Total Expended
$7.49M
Findings
2
Programs
2
Year: 2023 Accepted: 2024-01-08
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
7818 2023-001 Material Weakness - N
584260 2023-001 Material Weakness - N

Contacts

Name Title Type
EUPZANSA2CL1 Robert Waite Auditee
8563424186 Jason C. Rocker, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Village Apartments of Cherry Hill, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Village Apartments of Cherry Hill, Inc., HUD Project No. 035-11031, under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of Village Apartments of Cherry Hill, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Village Apartments of Cherry Hill, Inc. For the year ended June 30, 2023, no awards were passed through to subrecipients.
Title: Note 2 - Summary of significant accounting policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Village Apartments of Cherry Hill, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 - Indirect cost rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Village Apartments of Cherry Hill, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Village Apartments of Cherry Hill, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4 - U.S. Department of Housing and Urban Development loan program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Village Apartments of Cherry Hill, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Village Apartments of Cherry Hill, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 207 pursuant to section 223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Village Apartments of Cherry Hill, Inc. received no additional loans during the year. The balance of the loan outstanding at June 30, 2023 consists of:

Finding Details

Finding 2023-001 Lack of Approval of Management Agent Assistance Listing Number 14.155 - Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Projects Statement of Condition The project has not obtained a HUD-approved management agent certification (HUD Form 9839) as of June 30, 2023. Criteria HUD management agent certifications are required to be submitted to and approved by HUD. Cause The procedures in place to ensure that HUD approval is obtained, when necessary, were not followed. Effect or Potential Effect The management agent has not been approved by HUD to provide services to the Organization. Questioned Costs $110,492. Identification as a Repeat Finding No. Recommendation The Organization should submit HUD Form 9839 in order to obtain approval of the management agent. Auditor Noncompliance Code Z - Other Finding Resolution Status In Process. View of responsible officials: Management is in the process of submitting HUD Form 9839 for approval.
Finding 2023-001 Lack of Approval of Management Agent Assistance Listing Number 14.155 - Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Projects Statement of Condition The project has not obtained a HUD-approved management agent certification (HUD Form 9839) as of June 30, 2023. Criteria HUD management agent certifications are required to be submitted to and approved by HUD. Cause The procedures in place to ensure that HUD approval is obtained, when necessary, were not followed. Effect or Potential Effect The management agent has not been approved by HUD to provide services to the Organization. Questioned Costs $110,492. Identification as a Repeat Finding No. Recommendation The Organization should submit HUD Form 9839 in order to obtain approval of the management agent. Auditor Noncompliance Code Z - Other Finding Resolution Status In Process. View of responsible officials: Management is in the process of submitting HUD Form 9839 for approval.