FAC Explorer

Audit 16457

FY End
2022-06-30
Total Expended
$1.19M
Findings
4
Programs
2
Organization: Monarch Disabled Housing, Inc. (CA)
Year: 2022 Accepted: 2022-10-20
Auditor: Armanino LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12239 2022-001 Significant Deficiency - N
12240 2022-001 Significant Deficiency - N
588681 2022-001 Significant Deficiency - N
588682 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities (section 811, Capital Advance) $1.07M Yes 1
14.181 Supportive Housing for Persons with Disabilities (section 811, Prac Subsidy) $121,370 Yes 1

Contacts

Name Title Type
D5XKSX9CL3C9 Kim Morrison Auditee
8314691700 Grant Lam Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Monarch Disabled Housing, Inc. (the "Organization") under programs of the federal government for the year ended June 30, 2022. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. 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 limited as to reimbursement. Passthrough entity identifying numbers are presented where available and applicable. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1072400.

Finding Details

Finding 2022-001
Finding number: 2022-001 Assistance Listing number: 14.181 Assistance Listing title: Supportive Housing for Persons with Disabilities (Section 811) Federal award identification number and year: HUD Section 811 Capital Grant and Project Rental Assistance Contract - issued October 2002 Name of federal agency: U.S. Department of Housing and Urban Development Name of pass-through entity: N/A Repeat finding: No Criteria: Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. An amount as required by HUD ($3,960) shall be deposited monthly in the reserve fund. Condition: The Organization did not make all 12 monthly deposits into the reserve fund during the year. Additional monthly deposits were set up in accounts payable, but were not deposited prior to June 30, 2022. Cause: The Organization's accounting staff experienced turnover during 2022. Possible effect: The replacement reserve is not maintained in accordance with HUD requirements. Questioned cost: None Recommendation: The Organization should establish monthly closing procedures to ensure timely monthly deposits to the replacement reserve account. Views of responsible officials: Management agrees and will establish such a monthly closing procedure. The additional monthly deposits were deposited in the reserve fund subsequent to June 30, 2022.
Finding 2022-001
Finding number: 2022-001 Assistance Listing number: 14.181 Assistance Listing title: Supportive Housing for Persons with Disabilities (Section 811) Federal award identification number and year: HUD Section 811 Capital Grant and Project Rental Assistance Contract - issued October 2002 Name of federal agency: U.S. Department of Housing and Urban Development Name of pass-through entity: N/A Repeat finding: No Criteria: Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. An amount as required by HUD ($3,960) shall be deposited monthly in the reserve fund. Condition: The Organization did not make all 12 monthly deposits into the reserve fund during the year. Additional monthly deposits were set up in accounts payable, but were not deposited prior to June 30, 2022. Cause: The Organization's accounting staff experienced turnover during 2022. Possible effect: The replacement reserve is not maintained in accordance with HUD requirements. Questioned cost: None Recommendation: The Organization should establish monthly closing procedures to ensure timely monthly deposits to the replacement reserve account. Views of responsible officials: Management agrees and will establish such a monthly closing procedure. The additional monthly deposits were deposited in the reserve fund subsequent to June 30, 2022.
Finding 2022-001
Finding number: 2022-001 Assistance Listing number: 14.181 Assistance Listing title: Supportive Housing for Persons with Disabilities (Section 811) Federal award identification number and year: HUD Section 811 Capital Grant and Project Rental Assistance Contract - issued October 2002 Name of federal agency: U.S. Department of Housing and Urban Development Name of pass-through entity: N/A Repeat finding: No Criteria: Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. An amount as required by HUD ($3,960) shall be deposited monthly in the reserve fund. Condition: The Organization did not make all 12 monthly deposits into the reserve fund during the year. Additional monthly deposits were set up in accounts payable, but were not deposited prior to June 30, 2022. Cause: The Organization's accounting staff experienced turnover during 2022. Possible effect: The replacement reserve is not maintained in accordance with HUD requirements. Questioned cost: None Recommendation: The Organization should establish monthly closing procedures to ensure timely monthly deposits to the replacement reserve account. Views of responsible officials: Management agrees and will establish such a monthly closing procedure. The additional monthly deposits were deposited in the reserve fund subsequent to June 30, 2022.
Finding 2022-001
Finding number: 2022-001 Assistance Listing number: 14.181 Assistance Listing title: Supportive Housing for Persons with Disabilities (Section 811) Federal award identification number and year: HUD Section 811 Capital Grant and Project Rental Assistance Contract - issued October 2002 Name of federal agency: U.S. Department of Housing and Urban Development Name of pass-through entity: N/A Repeat finding: No Criteria: Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. An amount as required by HUD ($3,960) shall be deposited monthly in the reserve fund. Condition: The Organization did not make all 12 monthly deposits into the reserve fund during the year. Additional monthly deposits were set up in accounts payable, but were not deposited prior to June 30, 2022. Cause: The Organization's accounting staff experienced turnover during 2022. Possible effect: The replacement reserve is not maintained in accordance with HUD requirements. Questioned cost: None Recommendation: The Organization should establish monthly closing procedures to ensure timely monthly deposits to the replacement reserve account. Views of responsible officials: Management agrees and will establish such a monthly closing procedure. The additional monthly deposits were deposited in the reserve fund subsequent to June 30, 2022.