FAC Explorer

Audit 1800

FY End
2023-04-30
Total Expended
$1.50M
Findings
6
Programs
3
Organization: Mt. Auburn Housing, Inc. (OH)
Year: 2023 Accepted: 2023-10-31
Auditor: Tidwell Group LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
964 2023-001 Significant Deficiency Yes P
965 2023-002 Significant Deficiency Yes P
966 2023-003 Significant Deficiency - P
577406 2023-001 Significant Deficiency Yes P
577407 2023-002 Significant Deficiency Yes P
577408 2023-003 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.164 Operating Assistance for Troubled Multifamily Housing Projects $1.02M Yes 2
14.195 Section 8 Housing Assistance Payments Program $416,636 - 0
14.197 Multifamily Assisted Housing Reform and Affordability Act $58,089 - 1

Contacts

Name Title Type
N8SLBH6SZ2U8 Stephen Tepner Auditee
3176457123 Damien Cassell Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: (a) 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. (b) Mt. Auburn Housing, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. (c) The outstanding balance of loan and loan guarantee program at April 30, 2023 with continuing compliance requirements which are reported as federal expenditures on the accompanying schedule of expenditures of federal awards was $1,073,832. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Mt. Auburn Housing, 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 (CFR) Part 200, Uniform Administrative Requirements, Cost 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 basic financial statements.

Finding Details

Finding 2023-001
S3800-010 Finding Reference Number 2023-1 S3800-015 Type of Finding Federal Award Finding S3800-020 Criteria The Regulatory Agreement requires debt to be paid in full at maturity. S3800-030 Statement of Condition The Corporation's Mortgage Restructuring Note should have been paid in full in August 2014. Principle Balance $52,489 S3800-035 Auditor Non-Compliance Code Q - Failure to make mortgage payments S3800-037 FHA/Contract Number 046-44083 S3800-038 Questioned Costs $-0- S3800-050 Context The Corporation did not have enough liquid funds to pay the loan in full. S3800-060 Effect The Project could be foreclosed and sold to pay off the debt. S3800-070 Cause The Corporation does not have enough liquid funds to pay the loan in full. S3800-080 Recommendation The Corporation should work with HUD to extend the maturity date or refinance the mortgage.
Finding 2023-002
S3800-010 Finding Reference Number 2023-2 S3800-015 Type of Finding Federal Award Finding S3800-020 Criteria The Regulatory Agreement requires debt to be paid in full at maturity. S3800-030 Statement of Condition The Corporation's Flexible Subsidy Loan should have been paid in full in August 2014. Principal Balance $1,277,840 S3800-035 Auditor Non-Compliance Code Q - Failure to make mortgage payments S3800-037 FHA/Contract Number 046-44083 S3800-038 Questioned Costs $-0- S3800-050 Context The Corporation did not have enough liquid funds to pay the loan in full. S3800-060 Effect The Project could be foreclosed and sold to pay off the debt. S3800-070 Cause The Corporation does not have enough liquid funds to pay the loan in full. S3800-080 Recommendation The Corporation should work with HUD to extend the maturity date or refinance the mortgage.
Finding 2023-003
S3800-010 Finding Reference Number 2023-3 S3800-015 Type of Finding Federal Award Finding S3800-020 Criteria The Regulatory Agreement requires monthly deposits to be made to the Reserve for Replacement account. S3800-030 Statement of Condition The Corporation did not make all required monthly deposits to the Reserve for Replacement account. S3800-035 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S3800-037 FHA/Contract Number 046-44083 S3800-038 Questioned Costs $-0- S3800-050 Context The Corporation did not make four monthly deposits to the Reserve for Replacement account during the year in the amount of $12,266. S3800-060 Effect Deferred maintenance could occur from underfunding the reserve. S3800-070 Cause Management oversight. S3800-080 Recommendation The Corporation should transfer $12,266 into the Reserve for Replacement account.
Finding 2023-001
S3800-010 Finding Reference Number 2023-1 S3800-015 Type of Finding Federal Award Finding S3800-020 Criteria The Regulatory Agreement requires debt to be paid in full at maturity. S3800-030 Statement of Condition The Corporation's Mortgage Restructuring Note should have been paid in full in August 2014. Principle Balance $52,489 S3800-035 Auditor Non-Compliance Code Q - Failure to make mortgage payments S3800-037 FHA/Contract Number 046-44083 S3800-038 Questioned Costs $-0- S3800-050 Context The Corporation did not have enough liquid funds to pay the loan in full. S3800-060 Effect The Project could be foreclosed and sold to pay off the debt. S3800-070 Cause The Corporation does not have enough liquid funds to pay the loan in full. S3800-080 Recommendation The Corporation should work with HUD to extend the maturity date or refinance the mortgage.
Finding 2023-002
S3800-010 Finding Reference Number 2023-2 S3800-015 Type of Finding Federal Award Finding S3800-020 Criteria The Regulatory Agreement requires debt to be paid in full at maturity. S3800-030 Statement of Condition The Corporation's Flexible Subsidy Loan should have been paid in full in August 2014. Principal Balance $1,277,840 S3800-035 Auditor Non-Compliance Code Q - Failure to make mortgage payments S3800-037 FHA/Contract Number 046-44083 S3800-038 Questioned Costs $-0- S3800-050 Context The Corporation did not have enough liquid funds to pay the loan in full. S3800-060 Effect The Project could be foreclosed and sold to pay off the debt. S3800-070 Cause The Corporation does not have enough liquid funds to pay the loan in full. S3800-080 Recommendation The Corporation should work with HUD to extend the maturity date or refinance the mortgage.
Finding 2023-003
S3800-010 Finding Reference Number 2023-3 S3800-015 Type of Finding Federal Award Finding S3800-020 Criteria The Regulatory Agreement requires monthly deposits to be made to the Reserve for Replacement account. S3800-030 Statement of Condition The Corporation did not make all required monthly deposits to the Reserve for Replacement account. S3800-035 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S3800-037 FHA/Contract Number 046-44083 S3800-038 Questioned Costs $-0- S3800-050 Context The Corporation did not make four monthly deposits to the Reserve for Replacement account during the year in the amount of $12,266. S3800-060 Effect Deferred maintenance could occur from underfunding the reserve. S3800-070 Cause Management oversight. S3800-080 Recommendation The Corporation should transfer $12,266 into the Reserve for Replacement account.