FAC Explorer

Audit 294568

FY End
2021-12-31
Total Expended
$1.28M
Findings
16
Programs
2
Organization: Lincoln Road Benevolent Corporation D/b/a Olenes Pop Vidrine Gardens (LA)
Year: 2021 Accepted: 2024-03-11
Auditor: Vige Tujague & Noel

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
375521 2021-001 Significant Deficiency Yes N
375522 2021-002 Significant Deficiency Yes P
375523 2021-003 Significant Deficiency Yes P
375524 2021-004 Significant Deficiency Yes B
375525 2021-001 Significant Deficiency Yes N
375526 2021-002 Significant Deficiency Yes P
375527 2021-003 Significant Deficiency Yes P
375528 2021-004 Significant Deficiency Yes B
951963 2021-001 Significant Deficiency Yes N
951964 2021-002 Significant Deficiency Yes P
951965 2021-003 Significant Deficiency Yes P
951966 2021-004 Significant Deficiency Yes B
951967 2021-001 Significant Deficiency Yes N
951968 2021-002 Significant Deficiency Yes P
951969 2021-003 Significant Deficiency Yes P
951970 2021-004 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.18M Yes 4
14.195 Section 8 Housing Assistance Payments Program $100,668 - 4

Contacts

Name Title Type
WGL1GGHJJ5N7 Debra Kennedy Auditee
3373326004 Shirley Vige, JR Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: NOTE A – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens, HUD Project No.064-HD045-WPD-NP-L8 and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens, it is not intended to and does not present the financial positions, changes in net assets, or cash flows of Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens. NOTE B – 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. Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The capital advance above is a contingent liability recognized as net assets in the year of construction of the apartment complex. In the event the Corporation does not remain available for eligible low income households for a 40-year period, in compliance with the capital advance agreement, HUD may declare the entire amount due and payable. The principal balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens received no additional advances during the year. The principal balance outstanding at December 31, 2021 is $1,180,400. De Minimis Rate Used: N Rate Explanation: 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. Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens, HUD Project No.064-HD045-WPD-NP-L8 and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens, it is not intended to and does not present the financial positions, changes in net assets, or cash flows of Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE A – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens, HUD Project No.064-HD045-WPD-NP-L8 and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens, it is not intended to and does not present the financial positions, changes in net assets, or cash flows of Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens. NOTE B – 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. Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The capital advance above is a contingent liability recognized as net assets in the year of construction of the apartment complex. In the event the Corporation does not remain available for eligible low income households for a 40-year period, in compliance with the capital advance agreement, HUD may declare the entire amount due and payable. The principal balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens received no additional advances during the year. The principal balance outstanding at December 31, 2021 is $1,180,400. De Minimis Rate Used: N Rate Explanation: 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. Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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. Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The capital advance above is a contingent liability recognized as net assets in the year of construction of the apartment complex. In the event the Corporation does not remain available for eligible low income households for a 40-year period, in compliance with the capital advance agreement, HUD may declare the entire amount due and payable. The principal balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Lincoln Road Benevolent Corporation, D/B/A Olenes "Pop" Vidrine Gardens received no additional advances during the year. The principal balance outstanding at December 31, 2021 is $1,180,400.

Finding Details

Finding 2021-001
FINDING# 2021-001 RESIDUAL RECEIPTS DEPOSIT Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Special Test Condition: The Entity failed to make the required surplus cash deposit into the Residual Receipts Account within the required 90 day period after the end of the annual fiscal period within which it was generated. The required surplus cash deposit was $12,516 at December 31, 2019 and $10,633 at December 31, 2020, for a total of $23,149. Criteria: The Regulatory Agreement between the Entity and HUD requires the Entity to establish and maintain a residual receipts account. The agreement requires the owners to deposit surplus cash (residual receipts) into this account within 90 days after the end of the annual fiscal period within which it was generated. Effect: The Entity is in direct violation of the HUD Regulatory Agreement. Cause: This was an oversight by the Management Agent. Recommendation: The management agent should compute an estimate of surplus cash (residual receipts) for the fiscal year upon completion of that period. In the event that surplus cash exists at the completion of the fiscal period, the Management Agent must further ensure that all required deposits are made to the Residual Receipts account within the required time frame and that the balance in that account meets the minimum required balance in accordance with the regulatory agreement between the Entity and HUD. Views of Responsible Officials and Planned Corrective Action: The management agent agrees with the finding and the auditor’s recommendations have been adopted. Surplus cash will be calculated upon the completion of an annual fiscal period. If it is concluded that surplus cash exists at the end of the annual fiscal period, and further determined that the surplus cash was received within that fiscal period, that amount of surplus cash will be deposited into the Residual Receipts Account within ninety days of the close of that fiscal period. The surplus cash deposit for 2019 was paid on January 26, 2022, and the surplus cash deposit for 2020 was paid on May 2, 2022. This finding has been repeated since 2020. Prior year finding #2020-004.
Finding 2021-002
FINDING# 2021-002 LATE AUDIT SUBMISSION Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Other Condition: The project did not file its annual audit within the required time frame. Criteria: HUD requires that audits of its properties be completed within three months of the close of the entity’s fiscal year or within nine months if an Owner Certification is filed. Effect: The entity is in violation of HUD’s audit requirements. Cause: The property did not pay its’ prior year audit fee in a timely manner causing the December 31, 2021 audit to be delayed. Recommendation: We recommend that the property comply with HUD’s audit requirements and ensure that the audit is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management is aware and will comply with this recommendation in the future. This finding has been repeated since 2016. Prior year finding #2020-002.
Finding 2021-003
FINDING# 2021-003 LATE CENSUS BUREAU FILING Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Other Condition: The property did not file its annual data collection form with the Federal Audit Clearing House Census Bureau within the required time frame. Criteria: The Federal Audit Clearing House Census Bureau requires that non-profit organizations, subject to a single audit, file a data collection form within nine months of the organizations fiscal year-end or 30 days after the audit is released, whichever is sooner. Effect: The property is in violation of the Federal Audit Clearing House Census Bureau’s requirements. Cause: The property did not pay its’ prior year audit fee in a timely manner causing the December 31, 2021 audit to be delayed. Recommendation: We recommend that the property comply with all continuing compliance requirements and ensure that the data collection form is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management will comply with this recommendation in the future. This finding has been repeated since 2016. Prior year finding #2020-003.
Finding 2021-004
FINDING #2021-004 OVERPAYMENT OF PAYROLL EXPENSES Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Allowable Costs Condition: The management agent miscalculated payroll tax and health insurance expenses which were then reimbursed by the entity, resulting in an overpayment of $8,791 in payroll taxes and $7,152 of insurance, totaling $15,943. The management agent reimbursed the entity $6,394 on March 29, 2019, and $7,929 on August 4, 2020, resulting in a balance of $1,620 on December 31, 2020. This amount was still due at December 31, 2021. Criteria: The Entity should pay only those expenses that are required and necessary for the operation of the entity. Management should ensure that the proper controls are in place to prevent the payment of unallowable expenses. Effect: The Entity overpaid payroll and insurance expenses in the amount of $15,943. Cause: The management agent miscalculated payroll expenses allocated to the property. Recommendation: We recommend that the management agent reimburse the entity for the overpayment of payroll expenses and implement additional controls to ensure that these fees are properly calculated in the future. Views of Responsible Officials and Planned Corrective Action: The management agent reimbursed the entity the $1,620. They have also contracted with an outside payroll organization to administer payroll.
Finding 2021-001
FINDING# 2021-001 RESIDUAL RECEIPTS DEPOSIT Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Special Test Condition: The Entity failed to make the required surplus cash deposit into the Residual Receipts Account within the required 90 day period after the end of the annual fiscal period within which it was generated. The required surplus cash deposit was $12,516 at December 31, 2019 and $10,633 at December 31, 2020, for a total of $23,149. Criteria: The Regulatory Agreement between the Entity and HUD requires the Entity to establish and maintain a residual receipts account. The agreement requires the owners to deposit surplus cash (residual receipts) into this account within 90 days after the end of the annual fiscal period within which it was generated. Effect: The Entity is in direct violation of the HUD Regulatory Agreement. Cause: This was an oversight by the Management Agent. Recommendation: The management agent should compute an estimate of surplus cash (residual receipts) for the fiscal year upon completion of that period. In the event that surplus cash exists at the completion of the fiscal period, the Management Agent must further ensure that all required deposits are made to the Residual Receipts account within the required time frame and that the balance in that account meets the minimum required balance in accordance with the regulatory agreement between the Entity and HUD. Views of Responsible Officials and Planned Corrective Action: The management agent agrees with the finding and the auditor’s recommendations have been adopted. Surplus cash will be calculated upon the completion of an annual fiscal period. If it is concluded that surplus cash exists at the end of the annual fiscal period, and further determined that the surplus cash was received within that fiscal period, that amount of surplus cash will be deposited into the Residual Receipts Account within ninety days of the close of that fiscal period. The surplus cash deposit for 2019 was paid on January 26, 2022, and the surplus cash deposit for 2020 was paid on May 2, 2022. This finding has been repeated since 2020. Prior year finding #2020-004.
Finding 2021-002
FINDING# 2021-002 LATE AUDIT SUBMISSION Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Other Condition: The project did not file its annual audit within the required time frame. Criteria: HUD requires that audits of its properties be completed within three months of the close of the entity’s fiscal year or within nine months if an Owner Certification is filed. Effect: The entity is in violation of HUD’s audit requirements. Cause: The property did not pay its’ prior year audit fee in a timely manner causing the December 31, 2021 audit to be delayed. Recommendation: We recommend that the property comply with HUD’s audit requirements and ensure that the audit is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management is aware and will comply with this recommendation in the future. This finding has been repeated since 2016. Prior year finding #2020-002.
Finding 2021-003
FINDING# 2021-003 LATE CENSUS BUREAU FILING Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Other Condition: The property did not file its annual data collection form with the Federal Audit Clearing House Census Bureau within the required time frame. Criteria: The Federal Audit Clearing House Census Bureau requires that non-profit organizations, subject to a single audit, file a data collection form within nine months of the organizations fiscal year-end or 30 days after the audit is released, whichever is sooner. Effect: The property is in violation of the Federal Audit Clearing House Census Bureau’s requirements. Cause: The property did not pay its’ prior year audit fee in a timely manner causing the December 31, 2021 audit to be delayed. Recommendation: We recommend that the property comply with all continuing compliance requirements and ensure that the data collection form is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management will comply with this recommendation in the future. This finding has been repeated since 2016. Prior year finding #2020-003.
Finding 2021-004
FINDING #2021-004 OVERPAYMENT OF PAYROLL EXPENSES Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Allowable Costs Condition: The management agent miscalculated payroll tax and health insurance expenses which were then reimbursed by the entity, resulting in an overpayment of $8,791 in payroll taxes and $7,152 of insurance, totaling $15,943. The management agent reimbursed the entity $6,394 on March 29, 2019, and $7,929 on August 4, 2020, resulting in a balance of $1,620 on December 31, 2020. This amount was still due at December 31, 2021. Criteria: The Entity should pay only those expenses that are required and necessary for the operation of the entity. Management should ensure that the proper controls are in place to prevent the payment of unallowable expenses. Effect: The Entity overpaid payroll and insurance expenses in the amount of $15,943. Cause: The management agent miscalculated payroll expenses allocated to the property. Recommendation: We recommend that the management agent reimburse the entity for the overpayment of payroll expenses and implement additional controls to ensure that these fees are properly calculated in the future. Views of Responsible Officials and Planned Corrective Action: The management agent reimbursed the entity the $1,620. They have also contracted with an outside payroll organization to administer payroll.
Finding 2021-001
FINDING# 2021-001 RESIDUAL RECEIPTS DEPOSIT Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Special Test Condition: The Entity failed to make the required surplus cash deposit into the Residual Receipts Account within the required 90 day period after the end of the annual fiscal period within which it was generated. The required surplus cash deposit was $12,516 at December 31, 2019 and $10,633 at December 31, 2020, for a total of $23,149. Criteria: The Regulatory Agreement between the Entity and HUD requires the Entity to establish and maintain a residual receipts account. The agreement requires the owners to deposit surplus cash (residual receipts) into this account within 90 days after the end of the annual fiscal period within which it was generated. Effect: The Entity is in direct violation of the HUD Regulatory Agreement. Cause: This was an oversight by the Management Agent. Recommendation: The management agent should compute an estimate of surplus cash (residual receipts) for the fiscal year upon completion of that period. In the event that surplus cash exists at the completion of the fiscal period, the Management Agent must further ensure that all required deposits are made to the Residual Receipts account within the required time frame and that the balance in that account meets the minimum required balance in accordance with the regulatory agreement between the Entity and HUD. Views of Responsible Officials and Planned Corrective Action: The management agent agrees with the finding and the auditor’s recommendations have been adopted. Surplus cash will be calculated upon the completion of an annual fiscal period. If it is concluded that surplus cash exists at the end of the annual fiscal period, and further determined that the surplus cash was received within that fiscal period, that amount of surplus cash will be deposited into the Residual Receipts Account within ninety days of the close of that fiscal period. The surplus cash deposit for 2019 was paid on January 26, 2022, and the surplus cash deposit for 2020 was paid on May 2, 2022. This finding has been repeated since 2020. Prior year finding #2020-004.
Finding 2021-002
FINDING# 2021-002 LATE AUDIT SUBMISSION Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Other Condition: The project did not file its annual audit within the required time frame. Criteria: HUD requires that audits of its properties be completed within three months of the close of the entity’s fiscal year or within nine months if an Owner Certification is filed. Effect: The entity is in violation of HUD’s audit requirements. Cause: The property did not pay its’ prior year audit fee in a timely manner causing the December 31, 2021 audit to be delayed. Recommendation: We recommend that the property comply with HUD’s audit requirements and ensure that the audit is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management is aware and will comply with this recommendation in the future. This finding has been repeated since 2016. Prior year finding #2020-002.
Finding 2021-003
FINDING# 2021-003 LATE CENSUS BUREAU FILING Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Other Condition: The property did not file its annual data collection form with the Federal Audit Clearing House Census Bureau within the required time frame. Criteria: The Federal Audit Clearing House Census Bureau requires that non-profit organizations, subject to a single audit, file a data collection form within nine months of the organizations fiscal year-end or 30 days after the audit is released, whichever is sooner. Effect: The property is in violation of the Federal Audit Clearing House Census Bureau’s requirements. Cause: The property did not pay its’ prior year audit fee in a timely manner causing the December 31, 2021 audit to be delayed. Recommendation: We recommend that the property comply with all continuing compliance requirements and ensure that the data collection form is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management will comply with this recommendation in the future. This finding has been repeated since 2016. Prior year finding #2020-003.
Finding 2021-004
FINDING #2021-004 OVERPAYMENT OF PAYROLL EXPENSES Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Allowable Costs Condition: The management agent miscalculated payroll tax and health insurance expenses which were then reimbursed by the entity, resulting in an overpayment of $8,791 in payroll taxes and $7,152 of insurance, totaling $15,943. The management agent reimbursed the entity $6,394 on March 29, 2019, and $7,929 on August 4, 2020, resulting in a balance of $1,620 on December 31, 2020. This amount was still due at December 31, 2021. Criteria: The Entity should pay only those expenses that are required and necessary for the operation of the entity. Management should ensure that the proper controls are in place to prevent the payment of unallowable expenses. Effect: The Entity overpaid payroll and insurance expenses in the amount of $15,943. Cause: The management agent miscalculated payroll expenses allocated to the property. Recommendation: We recommend that the management agent reimburse the entity for the overpayment of payroll expenses and implement additional controls to ensure that these fees are properly calculated in the future. Views of Responsible Officials and Planned Corrective Action: The management agent reimbursed the entity the $1,620. They have also contracted with an outside payroll organization to administer payroll.
Finding 2021-001
FINDING# 2021-001 RESIDUAL RECEIPTS DEPOSIT Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Special Test Condition: The Entity failed to make the required surplus cash deposit into the Residual Receipts Account within the required 90 day period after the end of the annual fiscal period within which it was generated. The required surplus cash deposit was $12,516 at December 31, 2019 and $10,633 at December 31, 2020, for a total of $23,149. Criteria: The Regulatory Agreement between the Entity and HUD requires the Entity to establish and maintain a residual receipts account. The agreement requires the owners to deposit surplus cash (residual receipts) into this account within 90 days after the end of the annual fiscal period within which it was generated. Effect: The Entity is in direct violation of the HUD Regulatory Agreement. Cause: This was an oversight by the Management Agent. Recommendation: The management agent should compute an estimate of surplus cash (residual receipts) for the fiscal year upon completion of that period. In the event that surplus cash exists at the completion of the fiscal period, the Management Agent must further ensure that all required deposits are made to the Residual Receipts account within the required time frame and that the balance in that account meets the minimum required balance in accordance with the regulatory agreement between the Entity and HUD. Views of Responsible Officials and Planned Corrective Action: The management agent agrees with the finding and the auditor’s recommendations have been adopted. Surplus cash will be calculated upon the completion of an annual fiscal period. If it is concluded that surplus cash exists at the end of the annual fiscal period, and further determined that the surplus cash was received within that fiscal period, that amount of surplus cash will be deposited into the Residual Receipts Account within ninety days of the close of that fiscal period. The surplus cash deposit for 2019 was paid on January 26, 2022, and the surplus cash deposit for 2020 was paid on May 2, 2022. This finding has been repeated since 2020. Prior year finding #2020-004.
Finding 2021-002
FINDING# 2021-002 LATE AUDIT SUBMISSION Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Other Condition: The project did not file its annual audit within the required time frame. Criteria: HUD requires that audits of its properties be completed within three months of the close of the entity’s fiscal year or within nine months if an Owner Certification is filed. Effect: The entity is in violation of HUD’s audit requirements. Cause: The property did not pay its’ prior year audit fee in a timely manner causing the December 31, 2021 audit to be delayed. Recommendation: We recommend that the property comply with HUD’s audit requirements and ensure that the audit is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management is aware and will comply with this recommendation in the future. This finding has been repeated since 2016. Prior year finding #2020-002.
Finding 2021-003
FINDING# 2021-003 LATE CENSUS BUREAU FILING Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Other Condition: The property did not file its annual data collection form with the Federal Audit Clearing House Census Bureau within the required time frame. Criteria: The Federal Audit Clearing House Census Bureau requires that non-profit organizations, subject to a single audit, file a data collection form within nine months of the organizations fiscal year-end or 30 days after the audit is released, whichever is sooner. Effect: The property is in violation of the Federal Audit Clearing House Census Bureau’s requirements. Cause: The property did not pay its’ prior year audit fee in a timely manner causing the December 31, 2021 audit to be delayed. Recommendation: We recommend that the property comply with all continuing compliance requirements and ensure that the data collection form is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management will comply with this recommendation in the future. This finding has been repeated since 2016. Prior year finding #2020-003.
Finding 2021-004
FINDING #2021-004 OVERPAYMENT OF PAYROLL EXPENSES Program: The Federal Programs are Section 811 Capital Advance (Assistance Listing 14.181) and Section 8 Housing Assistance Payments (Assistance Listing 14.195) issued by the U.S. Department of Housing and Urban Development. Type of Finding: Allowable Costs Condition: The management agent miscalculated payroll tax and health insurance expenses which were then reimbursed by the entity, resulting in an overpayment of $8,791 in payroll taxes and $7,152 of insurance, totaling $15,943. The management agent reimbursed the entity $6,394 on March 29, 2019, and $7,929 on August 4, 2020, resulting in a balance of $1,620 on December 31, 2020. This amount was still due at December 31, 2021. Criteria: The Entity should pay only those expenses that are required and necessary for the operation of the entity. Management should ensure that the proper controls are in place to prevent the payment of unallowable expenses. Effect: The Entity overpaid payroll and insurance expenses in the amount of $15,943. Cause: The management agent miscalculated payroll expenses allocated to the property. Recommendation: We recommend that the management agent reimburse the entity for the overpayment of payroll expenses and implement additional controls to ensure that these fees are properly calculated in the future. Views of Responsible Officials and Planned Corrective Action: The management agent reimbursed the entity the $1,620. They have also contracted with an outside payroll organization to administer payroll.