FAC Explorer

Audit 303286

FY End
2023-12-31
Total Expended
$2.73M
Findings
2
Programs
2
Organization: Rainbow Plaza, INC (CA)
Year: 2023 Accepted: 2024-04-11
Auditor: Robert Stephenson An Accountancy Corporation

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
392960 2023-001 - - P
969402 2023-001 - - P

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.38M Yes 1
14.195 Section 8 Housing Assistance Payments Program $348,142 - 0

Contacts

Name Title Type
L78LLADU3TY8 Steve Burger Auditee
7075845123 Robert Stephenson Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Accounting Policies: Accrual basis of accounting in accordance with the requirements of Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Instead the Project has a HUD approved management agreement allowing a per unit per month fee to cover administrative fees. The information on this schedule is prepared on the accrual basis of accounting in accordance with the requirements of the Uniform Guidance.
Title: Note 2 Accounting Policies: Accrual basis of accounting in accordance with the requirements of Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Instead the Project has a HUD approved management agreement allowing a per unit per month fee to cover administrative fees. The balance of the loan at December 31, 2023 is $2,352,933.
Title: Note 3 Accounting Policies: Accrual basis of accounting in accordance with the requirements of Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Instead the Project has a HUD approved management agreement allowing a per unit per month fee to cover administrative fees. The Project did not elect to use the ten (10) percent de minimis indirect cost rate as covered in Section 200.414 of the Uniform Guidance for Federal Awards. Instead of electing a ten (10) percent de minimis indirect cost rate, the Project has a HUD approved management agreement allowing a per unit per month fee to cover administrative fees as set forth in the agreement.

Finding Details

Finding 2023-001
Noncompliance Code P - Other Matters Condition Prior year financial statements were not filed in a timely manner. Criteria The HUD regulatory agreement requires annual submission of the financial statements within 90 days of the project’s fiscal year end. Effect None. Cause California was declared a federal disaster area due to the heavy rains in December 2022, and the Internal Revenue Service extended all due dates to October 15th, 2023 for income tax purposes. These events created significant disruptions in the timely completion of the 2022 financial statement audit. However, HUD refused to grant our request for an extension. The financial statements were submitted on May 2, 2023. Recommendation None required. Auditee Response Rainbow Plaza, Inc. confirms that corrective action has been completed.
Finding 2023-001
Noncompliance Code P - Other Matters Condition Prior year financial statements were not filed in a timely manner. Criteria The HUD regulatory agreement requires annual submission of the financial statements within 90 days of the project’s fiscal year end. Effect None. Cause California was declared a federal disaster area due to the heavy rains in December 2022, and the Internal Revenue Service extended all due dates to October 15th, 2023 for income tax purposes. These events created significant disruptions in the timely completion of the 2022 financial statement audit. However, HUD refused to grant our request for an extension. The financial statements were submitted on May 2, 2023. Recommendation None required. Auditee Response Rainbow Plaza, Inc. confirms that corrective action has been completed.