Audit 24255

FY End

2022-12-31

Total Expended

$7.16M

Findings

2

Programs

2

Organization: Rev. Dr. Clay Evans Manor (LA)

Year: 2022 Accepted: 2023-09-24

Auditor: Wharton CPA LLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
22028	2022-001	Significant Deficiency	Yes	N
598470	2022-001	Significant Deficiency	Yes	N

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$6.45M	Yes	1
14.195	Section 8 Housing Assistance Payments Program	$712,450	-	0

Contacts

Name	Title	Type
YSBMAWJH8P95	Dr. Willie Gable	Auditee
5045245471	Brendel Wharton	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1 Summary of Significant Accounting PoliciesBasis of Presentation - This schedule includes the activity of NBC Housing, Inc., Rev. Dr. Clay EvansManor and is presented on the accrual basis of accounting. The information in this schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance).Indirect Cost Rate Rev. Dr. Clay Evans Manor did not use the de minimis cost rate.Loan/Loan Guarantee Outstanding Balance - Supportive Housing for the Elderly - Capital Advance -The balance outstanding at the end of the audit period was $6,445,500. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 6445500.

Finding Details

Finding 2022-001

2022?1 Reserve for Replacement Monthly Deposits Not Made Timely Condition: Management failed to make the required monthly deposits into the reserve for replacement bank account on a monthly basis. Criteria: According to the Regulatory Agreement, ?mortgagor will establish and maintain a reserve fund for replacements in a separate account in a bank?Concurrently with the effective commencement of rental assistance payments under the Project Rental Assistance Contract, the Mortgagor will deposit an amount?per month unless a different date or amount is approved in writing by HUD?. Cause: The cause is undeterminable. Effect: The Project did not comply fully with the HUD regulatory agreement. Recommendation: I recommend management adhere to the Regulatory Agreement as it relates to required monthly deposits into the reserve for replacement account.

Finding 2022-001

2022?1 Reserve for Replacement Monthly Deposits Not Made Timely Condition: Management failed to make the required monthly deposits into the reserve for replacement bank account on a monthly basis. Criteria: According to the Regulatory Agreement, ?mortgagor will establish and maintain a reserve fund for replacements in a separate account in a bank?Concurrently with the effective commencement of rental assistance payments under the Project Rental Assistance Contract, the Mortgagor will deposit an amount?per month unless a different date or amount is approved in writing by HUD?. Cause: The cause is undeterminable. Effect: The Project did not comply fully with the HUD regulatory agreement. Recommendation: I recommend management adhere to the Regulatory Agreement as it relates to required monthly deposits into the reserve for replacement account.