FAC Explorer

Audit 15602

FY End
2023-09-30
Total Expended
$1.08M
Findings
2
Programs
2
Organization: Lake Cumberland Housing Development Company (KY)
Year: 2023 Accepted: 2024-02-05
Auditor: Hicks & Associates CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
11772 2023-001 - - N
588214 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $892,777 Yes 1
14.195 Section 8 Housing Assistance Payments Program $5,900 - 0

Contacts

Name Title Type
EWYNJJJL5413 Lisa Mann Auditee
2703434740 David W. Hicks Auditor
No contacts on file

Notes to SEFA

Title: Section 202 Loan Balance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Lake Cumberland Housing Development Company, Inc. (Project), HUD Project No. 083-11120, 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Section 202 Supportive Housing for the Elderly Direct Loan balance as of September 30, 2023 was $867,564.

Finding Details

Finding 2023-001
CONDITION: Disbursements from HUD-approved withdrawal were not made for the approved purpose. CRITERIA: Disbursements from Reserve for Replacements must be for HUD-approved purposes. EFFECT: The Project is not in compliance with award requirements. CONTEXT: Audit procedures that tested withdrawals from the Reserve for Replacements revealed disbursements totaling $8,152 were not made for HUD-approved purposes. CAUSE: The original items were ordered and subsequently cancelled when not received. As a result, the Project used the funds for other purposes and had not returned the funds back to the Reserve for Replacements as of September 30, 2023. RECOMMENDATION: The Project has not had any prior compliance issues with the Reserve for Replacements. However, we recommend that the Project monitor their spending of Reserve for Replacements disbursements closely and only use the funds for HUD-approved purposes. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: Management acknowledges and agrees with the finding and the Project will deposit the unapproved monies back to the Reserve for Replacements. Management concludes that additional corrective action is not necessary and does not expect this situation to arise again in the future.
Finding 2023-001
CONDITION: Disbursements from HUD-approved withdrawal were not made for the approved purpose. CRITERIA: Disbursements from Reserve for Replacements must be for HUD-approved purposes. EFFECT: The Project is not in compliance with award requirements. CONTEXT: Audit procedures that tested withdrawals from the Reserve for Replacements revealed disbursements totaling $8,152 were not made for HUD-approved purposes. CAUSE: The original items were ordered and subsequently cancelled when not received. As a result, the Project used the funds for other purposes and had not returned the funds back to the Reserve for Replacements as of September 30, 2023. RECOMMENDATION: The Project has not had any prior compliance issues with the Reserve for Replacements. However, we recommend that the Project monitor their spending of Reserve for Replacements disbursements closely and only use the funds for HUD-approved purposes. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: Management acknowledges and agrees with the finding and the Project will deposit the unapproved monies back to the Reserve for Replacements. Management concludes that additional corrective action is not necessary and does not expect this situation to arise again in the future.