FAC Explorer

Audit 308500

FY End
2023-06-30
Total Expended
$5.72M
Findings
4
Programs
2
Organization: Meds Apartments (IL)
Year: 2023 Accepted: 2024-06-10
Auditor: Haran & Associates LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
400508 2023-001 - - P
400509 2023-002 - - C
976950 2023-001 - - P
976951 2023-002 - - C

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $4.50M Yes 2
14.850 Public and Indian Housing $1.22M Yes 0

Contacts

Name Title Type
F7K2L8PNNNF5 Brian Nawrocki Auditee
3128425500 Greg Neistat Auditor
No contacts on file

Notes to SEFA

Title: SCOPE OF AUDIT PURSUANT TO THE UNIFORM GUIDANCE Accounting Policies: For purposes of the schedule of expenditures of federal awards, federal awards include all grants, contracts, loans, and loan guarantee agreements entered into directly between the Corporation and agencies and departments of the federal government. For the year ended June 30, 2023, the Corporation had no expenditures in the form of noncash assistance. The accompanying schedule of expenditures of federal awards is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Corporation did not use the de minimis cost rate. All federal grant actitivies of MEDS Apartments are included in the scope of the U.S. Office of Management and Budget (OMB) Uniform Guidance audit. Under Government Auditing Standards and U.S. Department of Housing and Urban Development (HUD) Regulatoins, the Corporation's Section 223(f) direct loan and its Housing Assistance Payment Contract (Section 8) are both considered major programs.
Title: MORTGAGE NOTE PAYABLE Accounting Policies: For purposes of the schedule of expenditures of federal awards, federal awards include all grants, contracts, loans, and loan guarantee agreements entered into directly between the Corporation and agencies and departments of the federal government. For the year ended June 30, 2023, the Corporation had no expenditures in the form of noncash assistance. The accompanying schedule of expenditures of federal awards is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Corporation did not use the de minimis cost rate. The remaining principal balance of the mortgage loan guaranteed by The Federal Housing Administration is reflected at its respective balance at July 1, 2022 in the accompanying schedule of expenditures of federal awards. The outstanding principal balance at June 30, 2023 amounted to $4,410,382.

Finding Details

Finding 2023-001
Statement of Condition: The annual reporting package for the year ended June 30, 2022 has not been submitted to the Federal Audit Clearinghouse within the required time frame. Criteria: Uniform Guidance and Federal Audit Clearinghouse requirements require that non-federal entities transmit their annual reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Effect or Potential Effect: Noncompliance with Uniform Guidance and Federal Audit Clearinghouse requirements. Cause: Procedures in place were not adequate to ensure the timely submission of the reporting package. Recommendation: Annual reporting packages should be submitted to the Federal Audit Clearinghouse no later than March 31st of the subsequent year. Reporting Views of Responsible Official: We concur with Finding 2023-1. The Corporation has implemented procedures to ensure the timely completion and submission of the annual reporting package. Status: Open
Finding 2023-002
Statement of Condition: The required deposit to the residual receipts account was not made within 90 days after year end. Based on the June 30, 2022 surplus cash calculation, a deposit of $13,422 should have been made by September 30, 2022. The deposit was not made until December 13, 2022. Criteria: The Regulatory Agreement requires all surplus cash from the prior year audit to be deposited to the residual receipts account within 90 days after year end. Effect or Potential Effect: Noncompliance with the Regulatory Agreement. Cause: Procedures in place were not adequate to ensure the timely deposit of the required surplus cash to the residual receipts account. Recommendation: Surplus cash (if any) should be deposited to the residual receipts account before September 30th. Reporting Views of Responsible Official: We concur with Finding 2023-2. The Corporation has implemented procedures to ensure the timely deposit of surplus cash to the residual receipts account. Status: Closed.
Finding 2023-001
Statement of Condition: The annual reporting package for the year ended June 30, 2022 has not been submitted to the Federal Audit Clearinghouse within the required time frame. Criteria: Uniform Guidance and Federal Audit Clearinghouse requirements require that non-federal entities transmit their annual reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Effect or Potential Effect: Noncompliance with Uniform Guidance and Federal Audit Clearinghouse requirements. Cause: Procedures in place were not adequate to ensure the timely submission of the reporting package. Recommendation: Annual reporting packages should be submitted to the Federal Audit Clearinghouse no later than March 31st of the subsequent year. Reporting Views of Responsible Official: We concur with Finding 2023-1. The Corporation has implemented procedures to ensure the timely completion and submission of the annual reporting package. Status: Open
Finding 2023-002
Statement of Condition: The required deposit to the residual receipts account was not made within 90 days after year end. Based on the June 30, 2022 surplus cash calculation, a deposit of $13,422 should have been made by September 30, 2022. The deposit was not made until December 13, 2022. Criteria: The Regulatory Agreement requires all surplus cash from the prior year audit to be deposited to the residual receipts account within 90 days after year end. Effect or Potential Effect: Noncompliance with the Regulatory Agreement. Cause: Procedures in place were not adequate to ensure the timely deposit of the required surplus cash to the residual receipts account. Recommendation: Surplus cash (if any) should be deposited to the residual receipts account before September 30th. Reporting Views of Responsible Official: We concur with Finding 2023-2. The Corporation has implemented procedures to ensure the timely deposit of surplus cash to the residual receipts account. Status: Closed.