FAC Explorer

Audit 19928

FY End
2022-06-30
Total Expended
$982,210
Findings
4
Programs
2
Organization: Virginia Place Apartments INC (LA)
Year: 2022 Accepted: 2022-10-06
Auditor: Johnson Perry Roussel & Cuthbert LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22904 2022-001 - - N
22905 2022-002 - - N
599346 2022-001 - - N
599347 2022-002 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $903,700 Yes 2
14.195 Section 8 Housing Assistance Payments Program $78,510 - 0

Contacts

Name Title Type
MC64LDFG2716 Veronica Glover Auditee
3188651422 Jay Cuthbert Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances 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 toreimbursement. Virginia Place Apartments, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 903700.

Finding Details

Finding 2022-001
2022-001 HUD Section 811 Capital Advance #14.181 Criteria: The Project is required to make monthly deposits of $800 into the Project?s Reserve for Replacement account. Condition: The Project did not make any monthly deposits to the Project?s Reserve for Replacement account. Cause: The Project did not have cash flow available to make the monthly Reserve for Replacement deposits due to HAP payments not received timely. Effect: The Project is behind on deposits to its Reserve for Replacement account in the amount of $9,600 as of June 30, 2022. Questioned Costs: N/A Other Information: Twelve of twelve monthly deposits were not made. This was not a repeat finding. Recommendation: The Management Agent should closely monitor cash flow to ensure sufficient funds are maintained to meet the Reserve for Replacement requirements. Response: Management agrees with the finding and deposited the delinquent Reserve for Replacement deposits in the amount of $9,600 on September 20, 2022.
Finding 2022-002
2022-002 HUD Section 811 Capital Advance #14.181 Criteria: Rent and HAP payments are to be deposited monthly into the operating account. Condition: The Project did not receive and deposit its monthly HAP payments from November 2021 to June 2022 in a timely manner. Cause: There was a change in personnel submitting the HAP requests and did not meet the required compliance rate. Effect: The Project was not able to meet its cash flow needs timely. Questioned Costs: N/A Other Information: Eight of twelve HAP payments were not received timely. This was not a repeat finding. Recommendation: The Management Agent should closely monitor the compliance over HAP requests to ensure that the HAP deposits are received timely. Response: Management agrees with the finding and corrected the compliance issue and received the delinquent HAP funds in July 2022.
Finding 2022-001
2022-001 HUD Section 811 Capital Advance #14.181 Criteria: The Project is required to make monthly deposits of $800 into the Project?s Reserve for Replacement account. Condition: The Project did not make any monthly deposits to the Project?s Reserve for Replacement account. Cause: The Project did not have cash flow available to make the monthly Reserve for Replacement deposits due to HAP payments not received timely. Effect: The Project is behind on deposits to its Reserve for Replacement account in the amount of $9,600 as of June 30, 2022. Questioned Costs: N/A Other Information: Twelve of twelve monthly deposits were not made. This was not a repeat finding. Recommendation: The Management Agent should closely monitor cash flow to ensure sufficient funds are maintained to meet the Reserve for Replacement requirements. Response: Management agrees with the finding and deposited the delinquent Reserve for Replacement deposits in the amount of $9,600 on September 20, 2022.
Finding 2022-002
2022-002 HUD Section 811 Capital Advance #14.181 Criteria: Rent and HAP payments are to be deposited monthly into the operating account. Condition: The Project did not receive and deposit its monthly HAP payments from November 2021 to June 2022 in a timely manner. Cause: There was a change in personnel submitting the HAP requests and did not meet the required compliance rate. Effect: The Project was not able to meet its cash flow needs timely. Questioned Costs: N/A Other Information: Eight of twelve HAP payments were not received timely. This was not a repeat finding. Recommendation: The Management Agent should closely monitor the compliance over HAP requests to ensure that the HAP deposits are received timely. Response: Management agrees with the finding and corrected the compliance issue and received the delinquent HAP funds in July 2022.