FAC Explorer

Audit 12420

FY End
2023-06-30
Total Expended
$928,901
Findings
2
Programs
1
Organization: Naf Senior Housing, Inc. (NE)
Year: 2023 Accepted: 2024-01-19
Auditor: Niewedde & Wiens Cpa's

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9069 2023-001 Material Weakness - N
585511 2023-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $928,901 Yes 1

Contacts

Name Title Type
R37ZPGLSWAN7 Lisa Linch Auditee
3083244633 Jeffrey J Wiens Auditor
No contacts on file

Notes to SEFA

Title: Debt balance Accounting Policies: 1. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of NAF Senior Housing, Inc., Eastlawn East - HUD Project No. 103-EE013 and is presented on the accrual basis of accounting. 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, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: 3. The entity did not elect to use the 10% de minimus cost rate as covered in § 200.414 Indirect (F&A) costs. 2. The outstanding balance of the Section 202 Capital Advance Program mortgage at June 30, 2023 was $908,900.

Finding Details

Finding 2023-001
Finding 2023-001: Excess Residual Receipts Material Weakness/Noncompliance Special Tests and Provisions Criteria: Annually upon expiration and/or renewal of the PRAC, residual receipts account balances in excess of $250 per unit must be remitted to HUD. Condition: The Project is allowed to maintain up to $4,500 in its residual receipts. The Project failed to determine excess receipts due to HUD when its PRAC renewed November 1, 2022. The excess due to HUD at June 30, 2023 was $5,292.34. Cause: The Project did not have procedures to annually review the residual receipts account balance at the PRAC renewal date. Effect or Potential Effect: The Project did not comply with the regulation to remit excess residual receipts to HUD. Recommendation: The Project has had significant vacancies this past year which has reduced its ability to pay its vendors or capital improvements. Prior to remitting funds back to HUD, the Project should contact its HUD representative to see if it would be possible to use the excess residual receipts instead of remitting them to HUD. If not, the Project should begin the process to remit the funds back to HUD. The Project should establish an annual procedure to review residual receipt balances on the PRAC renewal and remit funds as required. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.
Finding 2023-001
Finding 2023-001: Excess Residual Receipts Material Weakness/Noncompliance Special Tests and Provisions Criteria: Annually upon expiration and/or renewal of the PRAC, residual receipts account balances in excess of $250 per unit must be remitted to HUD. Condition: The Project is allowed to maintain up to $4,500 in its residual receipts. The Project failed to determine excess receipts due to HUD when its PRAC renewed November 1, 2022. The excess due to HUD at June 30, 2023 was $5,292.34. Cause: The Project did not have procedures to annually review the residual receipts account balance at the PRAC renewal date. Effect or Potential Effect: The Project did not comply with the regulation to remit excess residual receipts to HUD. Recommendation: The Project has had significant vacancies this past year which has reduced its ability to pay its vendors or capital improvements. Prior to remitting funds back to HUD, the Project should contact its HUD representative to see if it would be possible to use the excess residual receipts instead of remitting them to HUD. If not, the Project should begin the process to remit the funds back to HUD. The Project should establish an annual procedure to review residual receipt balances on the PRAC renewal and remit funds as required. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.