FAC Explorer

Audit 305928

FY End
2023-09-30
Total Expended
$2.46M
Findings
2
Programs
3
Organization: McKee Manor Apartments, Inc. (KY)
Year: 2023 Accepted: 2024-05-09
Auditor: Hicks & Associates CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396260 2023-001 - - N
972702 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.04M Yes 1
14.195 Section 8 Housing Assistance Payments Program $420,950 - 0
93.568 Low-Income Home Energy Assistance $2,076 - 0

Contacts

Name Title Type
WUCQJ11YCXT8 Jean Peyton Auditee
8592253334 David Hicks Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal assistance activity of McKee Manor Apartments, Inc., HUD Project No. 083-11150, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. The Project has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Section 223(f) Mortgage Insurance for Refinance of Existing Multifamily Projects loan balance as of September 30, 2023 was $1,959,748. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
FEDERAL AWARD FINDINGS: 2023-001 Replacement Reserve Withdrawal CONDITION: Disbursements from HUD approved withdrawal were not made for the approved purpose. CRITERIA: Disbursements from Replacement Reserve must be for only HUD approved purposes. EFFECT: The Project is not in compliance with award requirements. CONTEXT: Audit procedures for the year ended September 30, 2023 revealed there were withdrawals made from the Replacement Reserve totaling $10,806 for the year ended September 30, 2022 that were not used for HUD approved purposes. CAUSE: The original items were ordered and subsequently had malfunctions that needed to be repaired or replaced. As a result, the Project used the funds for other purposes and had not returned the funds back to the Replacement Reserve as of September 30, 2023. RECOMMENDATION: The Project has not had any prior compliance issues with the Replacement Reserve. However, we recommend that the Project monitor their spending of Replacement Reserve withdrawals closely and only use the funds for the HUD approved purposes. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: Management acknowledges and agrees with the finding. The Project paid back the approved monies withdrawn from the Replacement Reserve on April 19, 2024. Management concludes that additional corrective action is not necessary and does not expect this situation to arise again in the future.
Finding 2023-001
FEDERAL AWARD FINDINGS: 2023-001 Replacement Reserve Withdrawal CONDITION: Disbursements from HUD approved withdrawal were not made for the approved purpose. CRITERIA: Disbursements from Replacement Reserve must be for only HUD approved purposes. EFFECT: The Project is not in compliance with award requirements. CONTEXT: Audit procedures for the year ended September 30, 2023 revealed there were withdrawals made from the Replacement Reserve totaling $10,806 for the year ended September 30, 2022 that were not used for HUD approved purposes. CAUSE: The original items were ordered and subsequently had malfunctions that needed to be repaired or replaced. As a result, the Project used the funds for other purposes and had not returned the funds back to the Replacement Reserve as of September 30, 2023. RECOMMENDATION: The Project has not had any prior compliance issues with the Replacement Reserve. However, we recommend that the Project monitor their spending of Replacement Reserve withdrawals closely and only use the funds for the HUD approved purposes. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: Management acknowledges and agrees with the finding. The Project paid back the approved monies withdrawn from the Replacement Reserve on April 19, 2024. Management concludes that additional corrective action is not necessary and does not expect this situation to arise again in the future.