FAC Explorer

Audit 305890

FY End
2023-12-31
Total Expended
$1.10M
Findings
2
Programs
1
Organization: Grand Manor Mutual Housing Association, Inc. (NC)
Year: 2023 Accepted: 2024-05-09
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396241 2023-001 Material Weakness - H
972683 2023-001 Material Weakness - H

Programs

ALN Program Spent Major Findings
14.195 Section 8 Housing Assistance Payments Program $1.10M Yes 1

Contacts

Name Title Type
MNX5CVR1HQW7 Claudina Hruby Auditee
3038638651 Melissa W. Boone 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 OMB Circular A-122, "Cost Principles for Non-Profit Organizations" and the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Grand Manor Mutual Housing Association, 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 (the "Schedule") includes the federal award activity of Grand Manor Mutual Housing Association, Inc., under programs of the federal government for the year ended December 31, 2023. The information in the 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 Grand Manor Mutual Housing Association, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Grand Manor Mutual Housing Association, Inc. For the year ended December 31, 2023, no awards were passed through to subrecipients.
Title: Summary of significant accounting policies 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 OMB Circular A-122, "Cost Principles for Non-Profit Organizations" and the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Grand Manor Mutual Housing Association, Inc. has elected not to use the 10-percent de minimis indirect cost rate 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 OMB Circular A-122, "Cost Principles for Non-Profit Organizations" and the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Finding Details

Finding 2023-001
Criteria The terms of the regulatory agreement require distributions to be limited to available surplus cash computed on an annual or semi-annual basis. Condition During the year ended December 31, 2023, Grand Manor Mutual Housing Association, Inc. distributed $115,000 in excess of surplus cash available for distribution. Cause Procedures were not in place to ensure that distributions of cash were limited to available surplus cash in accordance with HUD regulations. Effect or Potential Effect The payments of $115,000 are unauthorized distributions and therefore considered to be questioned costs. Questioned Costs $115,000 Recommendations 2023-1-a Management should follow its procedures to limit distributions to the surplus cash amount calculated semi-annually and at year end. 2023-1-b Management should immediately reimburse the project's cash account for the unauthorized distribution. Auditor Noncompliance Code: H - Unauthorized distribution of project assets Reporting Views of Responsible Officials Our action plan includes documentation, management approval, and will remedy the problem going forward. Advances are to be recorded in a liability account that does not roll up into the AP module. This will eliminate paying advances in error. The payment is only moved into the AP module, for processing, after we determine we have excess cash and have the appropriate supporting documentation and approval. Surplus cash can only be calculated semi-annually and at year-end. If the calculation reflects excess cash, we must make payment within 90 days.
Finding 2023-001
Criteria The terms of the regulatory agreement require distributions to be limited to available surplus cash computed on an annual or semi-annual basis. Condition During the year ended December 31, 2023, Grand Manor Mutual Housing Association, Inc. distributed $115,000 in excess of surplus cash available for distribution. Cause Procedures were not in place to ensure that distributions of cash were limited to available surplus cash in accordance with HUD regulations. Effect or Potential Effect The payments of $115,000 are unauthorized distributions and therefore considered to be questioned costs. Questioned Costs $115,000 Recommendations 2023-1-a Management should follow its procedures to limit distributions to the surplus cash amount calculated semi-annually and at year end. 2023-1-b Management should immediately reimburse the project's cash account for the unauthorized distribution. Auditor Noncompliance Code: H - Unauthorized distribution of project assets Reporting Views of Responsible Officials Our action plan includes documentation, management approval, and will remedy the problem going forward. Advances are to be recorded in a liability account that does not roll up into the AP module. This will eliminate paying advances in error. The payment is only moved into the AP module, for processing, after we determine we have excess cash and have the appropriate supporting documentation and approval. Surplus cash can only be calculated semi-annually and at year-end. If the calculation reflects excess cash, we must make payment within 90 days.