FAC Explorer

Audit 306438

FY End
2023-03-31
Total Expended
$1.30M
Findings
4
Programs
2
Organization: Cocaa Seminole Development, Inc. (OK)
Year: 2023 Accepted: 2024-05-16
Auditor: John Flusche CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
397062 2023-001 Significant Deficiency - P
397063 2023-002 Significant Deficiency - P
973504 2023-001 Significant Deficiency - P
973505 2023-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.27M Yes 2
14.195 Section 8 Housing Assistance Payments Program $29,693 - 0

Contacts

Name Title Type
HX5JMNKJN665 Westchester Realty & Management LLC Auditee
4052753855 John Flusche Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year ended March 31, 2023 NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal activity of COCAA SEMINOLE DEVELOPMENT, INC., HUD Project No. 117-EE046, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the uniform guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the presentation of the basic financial statements. NOTE B - EXPENDITURES Total federal awards expended include current year accrued Section 8 Project Rental Assistance Contract and Section 202 Capital Advance at inception of the Project. No payments of principal or interest are due under the capital advance as long as the project is made available to low-income persons with disabilities. In addition, after 40 years the mortgage is considered paid in full. NOTE C – INDIRECT COST The Project has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2023-001
Title and CFDA Number of Federal Program: Section 202 Capital Advance CFDA # 14.181 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: The Project is not permitted to withdraw funds from the Replacement Reserve Account without the prior authorization from their HUD representative. Statement of Condition: The Project’s manager withdrew funds that were not approved by HUD using the HUD-9250 Funds Authorization from the Replacement Reserve worksheet. Cause: The Project’s management did not have the funds available to pay contractors for work performed on the property. Management did not submit Form 9250 requesting authorization to withdraw the funds. Effect or Potential Effect: The Project’s Replacement Reserve Account is underfunded by $26,138 from 2023 unauthorized withdrawals. Reporting Views of Responsible Officials: The Project’s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Recommendation: The Project’s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Auditor’s Summary of the Auditee’s Comments on the Finding Recommendations: The Project’s management withdrew funds without receiving authorization to withdraw funds from the Replacement Reserve account. Funds should only be withdrawn from the Replacement Reserve account after the HUD-9250 “Funds Authorization” form is signed by the HUD Representative. Response Indicator: Agree Completion Date: 06/27/2023 Response: The Project’s management will fully redeposit the funds into the Replacement Reserve account in 2023 and will not withdraw funds in the future without proper authorization.
Finding 2023-002
Title and CFDA Number of Federal Program: Section 202 Capital Advance CFDA # 14.181 Type of Finding: Federal Awards Finding Finding Resolution Status: Resolved Criteria: The Project had unauthorized withdrawals from the Replacement Reserve account paid to a different entity. Statement of Condition: The Project’s manager withdrew funds from the Replacement Reserve account and those funds were transferred to a different entity. Cause: The Projects management withdrew $8,000 from the replacement reserve account and deposited the funds into the account of another entity Managed by the agent. Effect or Potential Effect: The Project’s Replacement Reserve Account is underfunded by $8,000. Reporting Views of Responsible Officials: The Project’s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Recommendation: The Project’s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance, and better controls will be put into place to verify and control any withdraws from properties held at the same banking institution. Auditor’s Summary of the Auditee’s Comments on the Finding Recommendations: The Project’s management withdrew funds without receiving authorization to withdraw funds from the Replacement Reserve account and deposited those funds into a different entity’s bank account. Funds should only be withdrawn from the Replacement Reserve account after the HUD-9250 “Funds Authorization” form is signed by the HUD Representative. Response Indicator: Agree Completion Date: 06/27/2023 Response: The Project’s management will make a deposit from the other entity back into the Project’s replacement reserve account as soon as possible and will put measures into place to make sure all future deposits are deposited into the correct entity.
Finding 2023-001
Title and CFDA Number of Federal Program: Section 202 Capital Advance CFDA # 14.181 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: The Project is not permitted to withdraw funds from the Replacement Reserve Account without the prior authorization from their HUD representative. Statement of Condition: The Project’s manager withdrew funds that were not approved by HUD using the HUD-9250 Funds Authorization from the Replacement Reserve worksheet. Cause: The Project’s management did not have the funds available to pay contractors for work performed on the property. Management did not submit Form 9250 requesting authorization to withdraw the funds. Effect or Potential Effect: The Project’s Replacement Reserve Account is underfunded by $26,138 from 2023 unauthorized withdrawals. Reporting Views of Responsible Officials: The Project’s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Recommendation: The Project’s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Auditor’s Summary of the Auditee’s Comments on the Finding Recommendations: The Project’s management withdrew funds without receiving authorization to withdraw funds from the Replacement Reserve account. Funds should only be withdrawn from the Replacement Reserve account after the HUD-9250 “Funds Authorization” form is signed by the HUD Representative. Response Indicator: Agree Completion Date: 06/27/2023 Response: The Project’s management will fully redeposit the funds into the Replacement Reserve account in 2023 and will not withdraw funds in the future without proper authorization.
Finding 2023-002
Title and CFDA Number of Federal Program: Section 202 Capital Advance CFDA # 14.181 Type of Finding: Federal Awards Finding Finding Resolution Status: Resolved Criteria: The Project had unauthorized withdrawals from the Replacement Reserve account paid to a different entity. Statement of Condition: The Project’s manager withdrew funds from the Replacement Reserve account and those funds were transferred to a different entity. Cause: The Projects management withdrew $8,000 from the replacement reserve account and deposited the funds into the account of another entity Managed by the agent. Effect or Potential Effect: The Project’s Replacement Reserve Account is underfunded by $8,000. Reporting Views of Responsible Officials: The Project’s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Recommendation: The Project’s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance, and better controls will be put into place to verify and control any withdraws from properties held at the same banking institution. Auditor’s Summary of the Auditee’s Comments on the Finding Recommendations: The Project’s management withdrew funds without receiving authorization to withdraw funds from the Replacement Reserve account and deposited those funds into a different entity’s bank account. Funds should only be withdrawn from the Replacement Reserve account after the HUD-9250 “Funds Authorization” form is signed by the HUD Representative. Response Indicator: Agree Completion Date: 06/27/2023 Response: The Project’s management will make a deposit from the other entity back into the Project’s replacement reserve account as soon as possible and will put measures into place to make sure all future deposits are deposited into the correct entity.