FAC Explorer

Audit 297344

FY End
2023-06-30
Total Expended
$1.59M
Findings
2
Programs
2
Organization: Atmore Senior Housing, Inc. (AL)
Year: 2023 Accepted: 2024-03-25
Auditor: Smith Dukes & Buckalew LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
384229 2023-001 Significant Deficiency - N
960671 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.26M Yes 1
14.195 Section 8 Housing Assistance Payments Program $322,626 - 0

Contacts

Name Title Type
XJS4HJY9R7N1 Cindy Fulford Auditee
2513003500 Zachary Wolf Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL LOAN PROGRAMS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Atmore Senior Housing, Inc., HUD Project No. 062-11147, 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Project has not elected to use the 10-percent de minimis cost rate allowed under the Uniform Guidance. The amount of federal expenditures in the accompanying schedule of expenditures of federal awards includes the outstanding balance of a mortgage payable to HUD of $1,263,426 as of July 1, 2022. The balance was $1,231,624 as of June 30, 2023.

Finding Details

Finding 2023-001
FINDINGS-MAJOR FEDERAL AWARDS PROGRAM AUDIT 2023-001: SIGNIFICANT DEFICIENCY Information on the Federal Program: Assistance Listing Number 14.155 – Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Housing Projects. Criteria: The Project is required to deposit a certain amount into the replacement reserve account as determined by HUD. Condition: As of June 30, 2023, Atmore Senior Housing, Inc. reserve for replacement account was underfunded. Cause: Due to management oversight of a change in the deposit requirement, for nine of the twelve months during the year, the amount deposited was less than the amount required by HUD. Effect or Potential Effect: The Project could be deemed by HUD to be in default of its obligations under the Regulatory Agreement. Questioned Costs: N/A. Repeat Finding: No. Recommendation: We recommended that Atmore Senior Housing, Inc. deposit the underfunded amount into the reserve for replacement account and perform more thorough monthly reviews of deposit requirements. Views of Responsible Official: Management of Atmore Senior Housing, Inc. concurs with the audit finding. The Project has made the additional deposits to the reserve for replacement account. Management will thoroughly review all deposits to ensure that the required monthly deposits have been timely made to the replacement reserve account in the amount required by HUD.
Finding 2023-001
FINDINGS-MAJOR FEDERAL AWARDS PROGRAM AUDIT 2023-001: SIGNIFICANT DEFICIENCY Information on the Federal Program: Assistance Listing Number 14.155 – Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Housing Projects. Criteria: The Project is required to deposit a certain amount into the replacement reserve account as determined by HUD. Condition: As of June 30, 2023, Atmore Senior Housing, Inc. reserve for replacement account was underfunded. Cause: Due to management oversight of a change in the deposit requirement, for nine of the twelve months during the year, the amount deposited was less than the amount required by HUD. Effect or Potential Effect: The Project could be deemed by HUD to be in default of its obligations under the Regulatory Agreement. Questioned Costs: N/A. Repeat Finding: No. Recommendation: We recommended that Atmore Senior Housing, Inc. deposit the underfunded amount into the reserve for replacement account and perform more thorough monthly reviews of deposit requirements. Views of Responsible Official: Management of Atmore Senior Housing, Inc. concurs with the audit finding. The Project has made the additional deposits to the reserve for replacement account. Management will thoroughly review all deposits to ensure that the required monthly deposits have been timely made to the replacement reserve account in the amount required by HUD.