FAC Explorer

Audit 1357

FY End
2023-06-30
Total Expended
$2.28M
Findings
2
Programs
2
Organization: Charles Place Apartments (IL)
Year: 2023 Accepted: 2023-10-25
Auditor: Wade Stables PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
707 2023-001 Significant Deficiency - N
577149 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.20M Yes 1
14.195 Section 8 Housing Assistance Payments Program $78,042 - 0

Contacts

Name Title Type
CHKHNHBWVPG3 Michael Drew Auditee
2172237904 Anita Failor Auditor
No contacts on file

Notes to SEFA

Title: SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Charles Place Apartments and is presented in accordance with accounting principles generally accepted in the United States of America. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: For the year ended June 30, 2023, the Project did not recover indirect costs from federal awards. The 10% de minimis indirect cost rate was not used. Federal funds are not passed through to any subrecipients.
Title: NONCASH ASSISTANCE AND FEDERAL INSURANCE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Charles Place Apartments and is presented in accordance with accounting principles generally accepted in the United States of America. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: For the year ended June 30, 2023, the Project did not recover indirect costs from federal awards. The 10% de minimis indirect cost rate was not used. Charles Place Apartments did not receive any federal noncash assistance and had no federal insurance in effect during the year ended June 30, 2023.
Title: LOANS AND LOAN GUARANTEES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Charles Place Apartments and is presented in accordance with accounting principles generally accepted in the United States of America. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: For the year ended June 30, 2023, the Project did not recover indirect costs from federal awards. The 10% de minimis indirect cost rate was not used. Charles Place Apartments had federal loans or federal loan agreements with a balance of $2,197,300 at June 30, 2023.

Finding Details

Finding 2023-001
Criteria: The Project is required to refund security deposits to tenants within 30 days after the move-out date, per HUD handbook 4350.3, Chapter 6. Condition: During the course of our audit, we noted one tenant in our sampling with a move-out date of July 29, 2022. However, the security deposit was not refunded to the tenant until November 4, 2022. Cause: The Project has a move out process employed, however, due to personnel turnover, the Project did not have a housing manager in place during this time. This resulted in a delay in the Project’s move-out procedures. Once this oversight was discovered, the security deposit was immediately refunded to the tenant. Effect: Compliance with the U.S. Department of Housing and Urban Development program is essential. Any noncompliance could result in intermedial activity. Without timely monitoring, move-out procedures and required refunds can be overlooked. Perspective Information The Project only had two tenants move out during the current fiscal year. This is consistent with prior years’ moveout activity. Therefore, this appears to be an isolated incident. In addition, move-out procedures are not frequently performed. Recommendation: The Project should ensure a procedure is in place to perform all aspects required of the housing unit procedures in the event a housing manager is not available. Response: Management agent will be responsible for ensuring all aspects of the housing manager position are fulfilled in the event that the housing manager is unavailable. Cross training has taken place with the Owner/Director of the housing property so that should both parties be unavailable, the required duties for the housing unit will be acted upon in a timely manner. See Corrective Action Plan.
Finding 2023-001
Criteria: The Project is required to refund security deposits to tenants within 30 days after the move-out date, per HUD handbook 4350.3, Chapter 6. Condition: During the course of our audit, we noted one tenant in our sampling with a move-out date of July 29, 2022. However, the security deposit was not refunded to the tenant until November 4, 2022. Cause: The Project has a move out process employed, however, due to personnel turnover, the Project did not have a housing manager in place during this time. This resulted in a delay in the Project’s move-out procedures. Once this oversight was discovered, the security deposit was immediately refunded to the tenant. Effect: Compliance with the U.S. Department of Housing and Urban Development program is essential. Any noncompliance could result in intermedial activity. Without timely monitoring, move-out procedures and required refunds can be overlooked. Perspective Information The Project only had two tenants move out during the current fiscal year. This is consistent with prior years’ moveout activity. Therefore, this appears to be an isolated incident. In addition, move-out procedures are not frequently performed. Recommendation: The Project should ensure a procedure is in place to perform all aspects required of the housing unit procedures in the event a housing manager is not available. Response: Management agent will be responsible for ensuring all aspects of the housing manager position are fulfilled in the event that the housing manager is unavailable. Cross training has taken place with the Owner/Director of the housing property so that should both parties be unavailable, the required duties for the housing unit will be acted upon in a timely manner. See Corrective Action Plan.