Audit 13623

FY End
2023-09-30
Total Expended
$3.32M
Findings
2
Programs
1
Organization: Mmm Roseland INC (TX)
Year: 2023 Accepted: 2024-01-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
9985 2023-001 - - B
586427 2023-001 - - B

Programs

Contacts

Name Title Type
EPEUE1K45D71 Nannette Vallis Auditee
2812987999 Nancy MacK Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in 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 reimbursements. De Minimis Rate Used: N Rate Explanation: Roseland Manor Duplexes has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Roseland Manor Duplexes, FHA Project No. 114-11346 , 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 (CFR) 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 Roseland Manor Duplexes, it is not intended to and does not present the financial position, changes in net assets or cash flows of Roseland Manor Duplexes
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported in 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 reimbursements. De Minimis Rate Used: N Rate Explanation: Roseland Manor Duplexes has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported in 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 reimbursements.
Title: INDIRECT COST RATE Accounting Policies: Expenditures reported in 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 reimbursements. De Minimis Rate Used: N Rate Explanation: Roseland Manor Duplexes has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Roseland Manor Duplexes has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: HUD INSURED LOAN Accounting Policies: Expenditures reported in 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 reimbursements. De Minimis Rate Used: N Rate Explanation: Roseland Manor Duplexes has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Project received a mortgage insured loan in a prior year under section 207/223(f) of the National Housing Act. The mortgage loan balance at the beginning of the fiscal year is included in the schedule of federal expenditures. The Project received no additional loans during the year. The balance due on the mortgage loan at the end of the fiscal year amounted to $3,231,743.

Finding Details

Schedule reference number 2023-001. Title and AL Number of Federal Program: Section 223(f) HUD insured project, CFDA 14.155 Type of finding: Federal Award Resolution status: In process Population size: NA Sample size: NA Repeat finding: No Criteria: Surplus cash should be funded to the residual receipts account within 60 days of year end. Statement of Condition: The Project had surplus cash amounting to $197,819 as of September 30, 2023. Cause: Management made a deposit on December 5, 2023 for $194,026, which was 5 days late. Additionally, the deposit was short due to the audit of the financial statements not being completed at that time. Effect or Potential Effect: Minimal lost interest. Auditor Noncompliance code: B. Questioned cost: N/A Reporting views of officials: Auditee agrees with the finding. Context: This was noted while performing certain procedures on surplus cash. Recommendation: Management should calculate surplus cash prior to the audit to ensure that the correct deposit is made to the residual receipts account in a timely manner. Auditors' summary of auditee's comments: They are in agreement. Completion date: September 30, 2024 Response: In the future, management will calculate surplus cash prior to the audit. Additionally, management will make the additional required deposit as soon as possible.
Schedule reference number 2023-001. Title and AL Number of Federal Program: Section 223(f) HUD insured project, CFDA 14.155 Type of finding: Federal Award Resolution status: In process Population size: NA Sample size: NA Repeat finding: No Criteria: Surplus cash should be funded to the residual receipts account within 60 days of year end. Statement of Condition: The Project had surplus cash amounting to $197,819 as of September 30, 2023. Cause: Management made a deposit on December 5, 2023 for $194,026, which was 5 days late. Additionally, the deposit was short due to the audit of the financial statements not being completed at that time. Effect or Potential Effect: Minimal lost interest. Auditor Noncompliance code: B. Questioned cost: N/A Reporting views of officials: Auditee agrees with the finding. Context: This was noted while performing certain procedures on surplus cash. Recommendation: Management should calculate surplus cash prior to the audit to ensure that the correct deposit is made to the residual receipts account in a timely manner. Auditors' summary of auditee's comments: They are in agreement. Completion date: September 30, 2024 Response: In the future, management will calculate surplus cash prior to the audit. Additionally, management will make the additional required deposit as soon as possible.