FAC Explorer

Audit 2429

FY End
2023-06-30
Total Expended
$851,304
Findings
4
Programs
1
Organization: Richland Apartments, Inc. (NE)
Year: 2023 Accepted: 2023-11-06
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1293 2023-002 Significant Deficiency - N
1294 2023-002 Significant Deficiency - N
577735 2023-002 Significant Deficiency - N
577736 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $46,604 Yes 1

Contacts

Name Title Type
P9N5NQBLBH59 Todd Schuiteman Auditee
4025733700 Darren Osten Auditor
No contacts on file

Notes to SEFA

Title: Note 4 - U.S. Department of Housing and Urban Development (HUD) Section 811 Capital Advance Accounting Policies: Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Richland Apartments, Inc. (Richland) under programs of the federal government for the year ended June 30, 2023. 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 Richland, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Richland. Note 2 ‐ 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Note 3 ‐ Indirect Cost Rate Richland does not draw for indirect administrative costs and has not elected to use the 10‐percent deminimus indirect cost rate allowed under the Uniform Guidance. The HUD Section 811 Capital Advance is administered directly by Richland, and the balance and transactions relating to the capital advance are included in Richland’s financial statements. The capital advance outstanding is included in the federal expenditures included in the Schedule. The balance of loans outstanding at June 30, 2023 consists of: "See the Notes to the SEFA for chart/table".

Finding Details

Finding 2023-002
Criteria: In accordance with the Regulatory Agreement from HUD, management will maintain a reserve for replacement account. The reserve for replacement account shall at all times be subject to the control of HUD. Monthly deposits are required into the reserve for replacement as required by HUD. Condition: The project did not make the required monthly deposits into the reserve account for the year. Cause: This was an oversight by management during the year. Effect: This resulted in an underfunded reserve for replacement account at June 30, 2023 in the amount of two monthly deposits in the amount of $2,534. Context: The Regulatory Agreement with HUD requires monthly deposits to the reserve for replacement account. The current required monthly deposit is $1,267. Only ten required monthly deposits were made during the year. Recommendation: We recommend that additional deposits be made to the reserve for replacement account for the underfunded amount. We also recommend processes and controls are established to monitor the activities of the reserve for replacement account to ensure compliance with HUD requirements. Views of Responsible Officials: Management concurs that the required monthly deposits were not made during the year. Management will implement procedures to ensure future deposits to the reserve for replacement account are consistent with the amount required by HUD.
Finding 2023-002
Criteria: In accordance with the Regulatory Agreement from HUD, management will maintain a reserve for replacement account. The reserve for replacement account shall at all times be subject to the control of HUD. Monthly deposits are required into the reserve for replacement as required by HUD. Condition: The project did not make the required monthly deposits into the reserve account for the year. Cause: This was an oversight by management during the year. Effect: This resulted in an underfunded reserve for replacement account at June 30, 2023 in the amount of two monthly deposits in the amount of $2,534. Context: The Regulatory Agreement with HUD requires monthly deposits to the reserve for replacement account. The current required monthly deposit is $1,267. Only ten required monthly deposits were made during the year. Recommendation: We recommend that additional deposits be made to the reserve for replacement account for the underfunded amount. We also recommend processes and controls are established to monitor the activities of the reserve for replacement account to ensure compliance with HUD requirements. Views of Responsible Officials: Management concurs that the required monthly deposits were not made during the year. Management will implement procedures to ensure future deposits to the reserve for replacement account are consistent with the amount required by HUD.
Finding 2023-002
Criteria: In accordance with the Regulatory Agreement from HUD, management will maintain a reserve for replacement account. The reserve for replacement account shall at all times be subject to the control of HUD. Monthly deposits are required into the reserve for replacement as required by HUD. Condition: The project did not make the required monthly deposits into the reserve account for the year. Cause: This was an oversight by management during the year. Effect: This resulted in an underfunded reserve for replacement account at June 30, 2023 in the amount of two monthly deposits in the amount of $2,534. Context: The Regulatory Agreement with HUD requires monthly deposits to the reserve for replacement account. The current required monthly deposit is $1,267. Only ten required monthly deposits were made during the year. Recommendation: We recommend that additional deposits be made to the reserve for replacement account for the underfunded amount. We also recommend processes and controls are established to monitor the activities of the reserve for replacement account to ensure compliance with HUD requirements. Views of Responsible Officials: Management concurs that the required monthly deposits were not made during the year. Management will implement procedures to ensure future deposits to the reserve for replacement account are consistent with the amount required by HUD.
Finding 2023-002
Criteria: In accordance with the Regulatory Agreement from HUD, management will maintain a reserve for replacement account. The reserve for replacement account shall at all times be subject to the control of HUD. Monthly deposits are required into the reserve for replacement as required by HUD. Condition: The project did not make the required monthly deposits into the reserve account for the year. Cause: This was an oversight by management during the year. Effect: This resulted in an underfunded reserve for replacement account at June 30, 2023 in the amount of two monthly deposits in the amount of $2,534. Context: The Regulatory Agreement with HUD requires monthly deposits to the reserve for replacement account. The current required monthly deposit is $1,267. Only ten required monthly deposits were made during the year. Recommendation: We recommend that additional deposits be made to the reserve for replacement account for the underfunded amount. We also recommend processes and controls are established to monitor the activities of the reserve for replacement account to ensure compliance with HUD requirements. Views of Responsible Officials: Management concurs that the required monthly deposits were not made during the year. Management will implement procedures to ensure future deposits to the reserve for replacement account are consistent with the amount required by HUD.