FAC Explorer

Audit 11171

FY End
2023-09-30
Total Expended
$1.06M
Findings
2
Programs
2
Organization: Mary Breckinridge Housing, Inc. 083-11145 (KY)
Year: 2023 Accepted: 2024-01-12
Auditor: Bernard Robinson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
8354 2023-001 Significant Deficiency - P
584796 2023-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $899,546 Yes 1
14.195 Section 8 Housing Assistance Payments Program $160,852 - 0

Contacts

Name Title Type
CFQANXL3M853 Kristi Morris Auditee
8599776938 Jamie Parsons Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Mary Breckinridge Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Mary Breckinridge Housing, 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 Mary Breckinridge Housing, Inc., under programs of the federal government for the year ended September 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 Mary Breckinridge Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Mary Breckinridge Housing, Inc.
Title: LOAN OUTSTANDING Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Mary Breckinridge Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Mary Breckinridge Housing, Inc. has elected not to use the 10- percent de minimis indirect cost rate allowed under the Uniform Guidance. Mary Breckinridge Housing, Inc. had the following loan balance, related to federal awards, outstanding as of September 30, 2023: Program Title: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 207/223(f)); Assistance Listing Number: 14.155; Amount Outstanding: $876,799.

Finding Details

Finding 2023-001
Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 207/223(f)), Assistance Listing #14.155 Statement of Condition: During the year ended September 30, 2023, the Project overpaid the management company for reimbursement of payroll expenses for the maintenance employee of $11,534 and management fees of $4,828. Criteria: Per paragraph 9(b) of the Regulatory Agreement with HUD, payment for services, supplies, or materials shall not exceed the amount ordinarily paid for such services, supplies, or materials in the area where the supplies are rendered or the supplies or materials are furnished. Effect: Noncompliance with HUD regulations. Cause: Management oversight. Context: A test was performed to review for reasonableness of payroll and management fee expenses. Questioned Costs: $16,362 Recommendation: We recommend that the Project funds are only used for expenses of the Project. Additionally, we recommend the management company reimburse the operating cash of the Project $16,362 for overpayments. Views of Responsible Officials and Corrective Action Plan: The management company acknowledges the Project was overcharged for reimbursement of payroll expenses and management fees and will reimburse the Project operating cash for the overpayments.
Finding 2023-001
Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 207/223(f)), Assistance Listing #14.155 Statement of Condition: During the year ended September 30, 2023, the Project overpaid the management company for reimbursement of payroll expenses for the maintenance employee of $11,534 and management fees of $4,828. Criteria: Per paragraph 9(b) of the Regulatory Agreement with HUD, payment for services, supplies, or materials shall not exceed the amount ordinarily paid for such services, supplies, or materials in the area where the supplies are rendered or the supplies or materials are furnished. Effect: Noncompliance with HUD regulations. Cause: Management oversight. Context: A test was performed to review for reasonableness of payroll and management fee expenses. Questioned Costs: $16,362 Recommendation: We recommend that the Project funds are only used for expenses of the Project. Additionally, we recommend the management company reimburse the operating cash of the Project $16,362 for overpayments. Views of Responsible Officials and Corrective Action Plan: The management company acknowledges the Project was overcharged for reimbursement of payroll expenses and management fees and will reimburse the Project operating cash for the overpayments.