FAC Explorer

Audit 291433

FY End
2023-06-30
Total Expended
$5.59M
Findings
4
Programs
5
Organization: Edward M. Marx Apartments, Inc. (FL)
Year: 2023 Accepted: 2024-02-21
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
369964 2023-001 - Yes N
369965 2023-002 - - N
946406 2023-001 - Yes N
946407 2023-002 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $4.70M Yes 1
14.239 Home Investment Partnerships Program $397,105 - 0
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contracts $257,652 Yes 1
14.128 Community Development Block Grant $215,395 - 0
14.157 Supportive Housing for the Elderly - Covid 19 Csp Project Rental Assistance Contracts $23,785 Yes 0

Contacts

Name Title Type
KB7BZ5E3LYT1 Irene Phillips Auditee
9548350888 Jennifer Koffman Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION 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: Edward M. Marx Apartments, Inc., has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Edward M. Marx Apartments, Inc., HUD Project No.071-EE244, 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 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 Edward M. Marx Apartments, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Edward M. Marx Apartments, Inc.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE 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: Edward M. Marx Apartments, Inc., has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Edward M. Marx Apartments, Inc., has received a HUD capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Edward M. Marx Apartments, Inc., received no additional loans during the year. The balance of the capital advance outstanding as of June 30, 2023 was $4,698,900.

Finding Details

Finding 2023-001
Finding No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: Yes, 2022-001. Criteria: As required by HUD regulations, applications for renewal of PRAC must be submitted at least 120 days prior to the expiration date of the contract. Statement of Condition: The Project did not submit the renewal request at least 120 days prior to the expiration date of the contract. Cause: The Project did not adhere to HUD regulations for PRAC renewal. Effect or Potential Effect: Monthly PRAC funding was delayed resulting in the need to request short term loans from the replacement reserve account. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: Management should implement procedures to ensure the Project submits PRAC renewal requests in a timely manner. Response Indicator: Agree. Completion Date: 8/22/2023 Response: A system is being put in place to follow up with managers to remind them of renewals on a timely basis.
Finding 2023-002
Finding No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Residual receipts. Sample Size Information: Residual receipts. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, surplus cash must be deposited into the residual receipts account within 90 days after year end. Statement of Condition: The Project did not deposit surplus cash of $23,031 into the residual receipts account within 90 days after year end. Cause: The Project did not perform a surplus cash computation in a timely manner. Effect or Potential Effect: The Project is noncompliant with the HUD requirement to deposit surplus cash into the residual receipts account within 90 days after year end. Auditor Non-Compliance Code: B – Failure to make required residual receipts deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should implement procedures to ensure the Project performs a surplus cash computation and deposits any required funds into the residual receipts account in a timely manner. Response Indicator: Agree. Completion Date: 6/30/2024 Response: Management will provide additional HUD training inclusive of surplus cash deposit requirements to new accountants and/or consultants.
Finding 2023-001
Finding No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: Yes, 2022-001. Criteria: As required by HUD regulations, applications for renewal of PRAC must be submitted at least 120 days prior to the expiration date of the contract. Statement of Condition: The Project did not submit the renewal request at least 120 days prior to the expiration date of the contract. Cause: The Project did not adhere to HUD regulations for PRAC renewal. Effect or Potential Effect: Monthly PRAC funding was delayed resulting in the need to request short term loans from the replacement reserve account. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: Management should implement procedures to ensure the Project submits PRAC renewal requests in a timely manner. Response Indicator: Agree. Completion Date: 8/22/2023 Response: A system is being put in place to follow up with managers to remind them of renewals on a timely basis.
Finding 2023-002
Finding No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Residual receipts. Sample Size Information: Residual receipts. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, surplus cash must be deposited into the residual receipts account within 90 days after year end. Statement of Condition: The Project did not deposit surplus cash of $23,031 into the residual receipts account within 90 days after year end. Cause: The Project did not perform a surplus cash computation in a timely manner. Effect or Potential Effect: The Project is noncompliant with the HUD requirement to deposit surplus cash into the residual receipts account within 90 days after year end. Auditor Non-Compliance Code: B – Failure to make required residual receipts deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should implement procedures to ensure the Project performs a surplus cash computation and deposits any required funds into the residual receipts account in a timely manner. Response Indicator: Agree. Completion Date: 6/30/2024 Response: Management will provide additional HUD training inclusive of surplus cash deposit requirements to new accountants and/or consultants.