FAC Explorer

Audit 20458

FY End
2022-09-30
Total Expended
$2.60M
Findings
2
Programs
2
Organization: Swan Memorial Housing Association (WA)
Year: 2022 Accepted: 2023-01-02
Auditor: Rf Company Cpa's P S

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
16546 2022-001 Significant Deficiency Yes N
592988 2022-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.14M Yes 1
14.195 Section 8 Housing Assistance Payments Program $452,085 Yes 0

Contacts

Name Title Type
VDNENAW28TX1 Connie Adams Auditee
5092485151 April Ann Flyte, CPA Auditor
No contacts on file

Notes to SEFA

Title: NOTE D. PASSED-THROUGH SUBRECIPIENTS Accounting Policies: NOTE A. BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Swan Memorial Housing Association under programs of the federal government for the year ended September 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 Swan Memorial Housing Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Swan Memorial Housing Association. NOTE 8. 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. De Minimis Rate Used: N Rate Explanation: Swan Memorial Housing Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. For the year ended September 30, 2022, there were no awards passed through to subrecipients.
Title: NOTE E. FEDERALLY FUNDED AND INSURED MORTGAGE Accounting Policies: NOTE A. BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Swan Memorial Housing Association under programs of the federal government for the year ended September 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 Swan Memorial Housing Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Swan Memorial Housing Association. NOTE 8. 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. De Minimis Rate Used: N Rate Explanation: Swan Memorial Housing Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Under the U.S. Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (the Note), Swan Memorial Housing Association received Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Mortgage. The Note is secured by a deed of trust and provides for monthly payments of $10,327, including principal and interest at 3.35 percent until August 1, 2047. At September 30, 2022, $2,091 ,888 is outstanding.

Finding Details

Finding 2022-001
SIGNIFICANT DEFICIENCY S3800-010 Finding Reference Number 2022-001 S3800-011 Title and CFDA Number of Federal Program U.S. Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects; 14.155 S3800-015 Type of Finding Federal Award Finding S3800-016 Finding Resolution Status In Process S3800-017 Information on Universe Population Size Not applicable S3800-018 Sample Size Information Not applicable S3800-019 Identification of Repeat Finding and Reference Number Yes; 2021-001 S3800-020 Criteria The project must comply with HUD guidelines regarding required monthly replacement reserve deposits. S3800-030 Statement of Condition The project?s replacement reserve was underfunded by $1,862 as of September 30, 2022. S3800-032 Cause Management oversight and mortgagor failing to update monthly billing. S3800-033 Effect or Potential Effect The project is not in compliance with the program agreements. S3800-035 Auditor Non-Compliance Code N ? Reserve for replacements deposits S3800-040 Questioned Costs $--- S3800-045 Reporting Views of Responsible Officials Management agrees with the finding and is in the process of funding the deficiency. S3800-037 FHA/Contract Number 12711174 S3800-038 Questioned Costs $--- S3800-080 Recommendation Management should have procedures in place to ensure that required monthly payments are remitted to the replacement reserve escrow. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Management agrees with the finding and is in the process of funding the deficiency. S3800-130 Response Indicator Agree S3800-140 Completion Date 12/31/2022 S3800-150 Response Management agrees with the finding and is in the process of funding the deficiency. S3800-160 Contact Person First Name Thomas S3800-170 Contact Person Middle Initial E. S3800-180 Contact Person Last Name Anderson
Finding 2022-001
SIGNIFICANT DEFICIENCY S3800-010 Finding Reference Number 2022-001 S3800-011 Title and CFDA Number of Federal Program U.S. Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects; 14.155 S3800-015 Type of Finding Federal Award Finding S3800-016 Finding Resolution Status In Process S3800-017 Information on Universe Population Size Not applicable S3800-018 Sample Size Information Not applicable S3800-019 Identification of Repeat Finding and Reference Number Yes; 2021-001 S3800-020 Criteria The project must comply with HUD guidelines regarding required monthly replacement reserve deposits. S3800-030 Statement of Condition The project?s replacement reserve was underfunded by $1,862 as of September 30, 2022. S3800-032 Cause Management oversight and mortgagor failing to update monthly billing. S3800-033 Effect or Potential Effect The project is not in compliance with the program agreements. S3800-035 Auditor Non-Compliance Code N ? Reserve for replacements deposits S3800-040 Questioned Costs $--- S3800-045 Reporting Views of Responsible Officials Management agrees with the finding and is in the process of funding the deficiency. S3800-037 FHA/Contract Number 12711174 S3800-038 Questioned Costs $--- S3800-080 Recommendation Management should have procedures in place to ensure that required monthly payments are remitted to the replacement reserve escrow. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Management agrees with the finding and is in the process of funding the deficiency. S3800-130 Response Indicator Agree S3800-140 Completion Date 12/31/2022 S3800-150 Response Management agrees with the finding and is in the process of funding the deficiency. S3800-160 Contact Person First Name Thomas S3800-170 Contact Person Middle Initial E. S3800-180 Contact Person Last Name Anderson