FAC Explorer

Audit 1757

FY End
2021-12-31
Total Expended
$957,477
Findings
6
Programs
1
Organization: Park Ridge Apartments, Inc. (LA)
Year: 2021 Accepted: 2023-10-30
Auditor: Vige Tujague & Noel

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
935 2021-001 Material Weakness - P
936 2021-002 Material Weakness - P
937 2021-003 Significant Deficiency Yes P
577377 2021-001 Material Weakness - P
577378 2021-002 Material Weakness - P
577379 2021-003 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $957,477 Yes 3

Contacts

Name Title Type
EHFTS6F4JZL6 Joan Kirsch Auditee
3372611408 Shirley Vige, JR Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 are limited as to reimbursement. Park Ridge Apartments, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 are limited as to reimbursement. Park Ridge Apartments, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Park Ridge Apartments, Inc. 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, Cost Principles, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of Park Ridge Apartments, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Park Ridge Apartments, Inc.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 are limited as to reimbursement. Park Ridge Apartments, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 are limited as to reimbursement. Park Ridge Apartments, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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 are limited as to reimbursement. Park Ridge Apartments, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE C – HOME INVESTMENT PARTNERSHIP PROGRAM LOAN Accounting Policies: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 are limited as to reimbursement. Park Ridge Apartments, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 are limited as to reimbursement. Park Ridge Apartments, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Park Ridge Apartments, Inc. has entered into a grant agreement with Louisiana Housing Finance Agency for the construction of the rental units. Park Ridge Apartments, Inc. must comply with the provision of the HOME Investment Partnership Program under Title II of the National Affordable Housing Act and applicable HUD regulations for no less than 15 years. The funds received are reported as long-term debt until the requirements of this agreement have been met. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of the loan outstanding at December 31, 2021 is $1,158,483.

Finding Details

Finding 2021-001
FINDING #2021-001 LATE PAYMENT OF CONSTRUCTION COSTS FROM LOUISIANA HOUSING FINANCE AGENCY LOAN AND INELIBIBLE COSTS Type of Finding: Financial Program: The Federal Program is HOME Investment Partnership Program (Assistance Listing 14.239) issued by the U.S. Department of Housing and Urban Development passed through to Louisiana Housing Finance Agency. Condition: The sponsoring agency did not pay the contractor for Application No. 3, dated July 1, 2020, in the amount of $32,465 from the Louisiana Housing Finance Agency loan disbursements. There were checks written to the sponsor in November and December in the amount of $32,200 in error. Criteria: The Louisiana Housing Corporation Nonprofit Open Cycle Affordable Housing Program Rental Development Regulatory Agreement requires that all HOME awards should be paid for eligible costs, as set forth in the regulatory agreement. Effect: The checks written to the sponsor in the amount of $32,200 were not eligible costs. Cause: This was an error by the sponsor. Recommendation: We recommend that the entity develop internal controls that will prevent this occurrence in the future. Views of Responsible Officials and Planned Corrective Action: Management will adopt controls to prevent this in the future.
Finding 2021-002
FINDING #2021-002 RECORD KEEPING FOR NEW CONSTRUCTION Type of Finding: Financial Program: The Federal Program is HOME Investment Partnership Program (Assistance Listing 14.239) issued by the U.S. Department of Housing and Urban Development passed through to Louisiana Housing Finance Agency. Condition: The sponsoring agent did not inform the managing agent, who is in control of the books and records, that there was a separate construction account, which was maintained by the sponsor. Criteria: The managing agent, or the individual responsible for financial record keeping should be informed of all cash accounts, in order to maintain accurate records. Effect: A prior period adjustment, in the amount of $110,989, was made to record the partial forgiveness of a loan. A corresponding increase in assets and liabilities, in the amount of $198,994, was also recorded to reflect activity in the account. Cause: The sponsor was not aware of their responsibility to inform the managing agent about this account. Recommendation: We recommend that the entity develop internal controls that will prevent this occurrence in the future. Views of Responsible Officials and Planned Corrective Action: Management will adopt controls to prevent this in the future.
Finding 2021-003
FINDING #2021-003 LATE FILING WITH FEDERAL AUDIT CLEARINGHOUSE Type of Finding: Other Program: The Federal Program is HOME Investment Partnership Program (Assistance Listing 14.239) issued by the U.S. Department of Housing and Urban Development passed through to Louisiana Housing Finance Agency. Condition: The property did not file its annual data collection form with the Federal Audit Clearing House Census Bureau within the required time frame. Criteria: The Federal Audit Clearing House Census Bureau requires that non-profit organizations, subject to a single audit, file a data collection form within nine months of the organizations fiscal year-end or 30 days after the audit is released, whichever is sooner. Effect: The property is in violation of the Federal Audit Clearing House Census Bureau’s requirements. Cause: The property did not pay its’ prior year audit fee in a timely manner causing the December 31, 2021 audit to be delayed. Recommendation: We recommend that the property comply with all continuing compliance requirements and ensure that the data collection form is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management will comply with this recommendation in the future. This is a repeat finding originally reported as item #2020-002.
Finding 2021-001
FINDING #2021-001 LATE PAYMENT OF CONSTRUCTION COSTS FROM LOUISIANA HOUSING FINANCE AGENCY LOAN AND INELIBIBLE COSTS Type of Finding: Financial Program: The Federal Program is HOME Investment Partnership Program (Assistance Listing 14.239) issued by the U.S. Department of Housing and Urban Development passed through to Louisiana Housing Finance Agency. Condition: The sponsoring agency did not pay the contractor for Application No. 3, dated July 1, 2020, in the amount of $32,465 from the Louisiana Housing Finance Agency loan disbursements. There were checks written to the sponsor in November and December in the amount of $32,200 in error. Criteria: The Louisiana Housing Corporation Nonprofit Open Cycle Affordable Housing Program Rental Development Regulatory Agreement requires that all HOME awards should be paid for eligible costs, as set forth in the regulatory agreement. Effect: The checks written to the sponsor in the amount of $32,200 were not eligible costs. Cause: This was an error by the sponsor. Recommendation: We recommend that the entity develop internal controls that will prevent this occurrence in the future. Views of Responsible Officials and Planned Corrective Action: Management will adopt controls to prevent this in the future.
Finding 2021-002
FINDING #2021-002 RECORD KEEPING FOR NEW CONSTRUCTION Type of Finding: Financial Program: The Federal Program is HOME Investment Partnership Program (Assistance Listing 14.239) issued by the U.S. Department of Housing and Urban Development passed through to Louisiana Housing Finance Agency. Condition: The sponsoring agent did not inform the managing agent, who is in control of the books and records, that there was a separate construction account, which was maintained by the sponsor. Criteria: The managing agent, or the individual responsible for financial record keeping should be informed of all cash accounts, in order to maintain accurate records. Effect: A prior period adjustment, in the amount of $110,989, was made to record the partial forgiveness of a loan. A corresponding increase in assets and liabilities, in the amount of $198,994, was also recorded to reflect activity in the account. Cause: The sponsor was not aware of their responsibility to inform the managing agent about this account. Recommendation: We recommend that the entity develop internal controls that will prevent this occurrence in the future. Views of Responsible Officials and Planned Corrective Action: Management will adopt controls to prevent this in the future.
Finding 2021-003
FINDING #2021-003 LATE FILING WITH FEDERAL AUDIT CLEARINGHOUSE Type of Finding: Other Program: The Federal Program is HOME Investment Partnership Program (Assistance Listing 14.239) issued by the U.S. Department of Housing and Urban Development passed through to Louisiana Housing Finance Agency. Condition: The property did not file its annual data collection form with the Federal Audit Clearing House Census Bureau within the required time frame. Criteria: The Federal Audit Clearing House Census Bureau requires that non-profit organizations, subject to a single audit, file a data collection form within nine months of the organizations fiscal year-end or 30 days after the audit is released, whichever is sooner. Effect: The property is in violation of the Federal Audit Clearing House Census Bureau’s requirements. Cause: The property did not pay its’ prior year audit fee in a timely manner causing the December 31, 2021 audit to be delayed. Recommendation: We recommend that the property comply with all continuing compliance requirements and ensure that the data collection form is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management will comply with this recommendation in the future. This is a repeat finding originally reported as item #2020-002.