FAC Explorer

Audit 309788

FY End
2023-07-31
Total Expended
$1.74M
Findings
2
Programs
2
Organization: Lima Interfaith Senior Housing Corporation (OH)
Year: 2023 Accepted: 2024-06-25
Auditor: Dauby O'Connor & Zaleski LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401878 2023-001 Material Weakness - A
978320 2023-001 Material Weakness - A

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.42M Yes 1
14.195 Section 8 Housing Assistance Payments Program $322,859 - 0

Contacts

Name Title Type
YPF5K5M36H67 Timothy J. Stolly Auditee
4192316957 Jeremy Wilson Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The schedule of expenditures of federal awards is prepared on the accrual basis of accounting De Minimis Rate Used: N Rate Explanation: The Corporation has elected to not use the 10% de minimis cost rate. Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Assistance Listing No. 14.155) The balance of the HUD Section 207 pursuant to Section 223(f) mortgage loan at July 31, 2023 is $1,338,121.

Finding Details

Finding 2023-001
During the year ended July 31, 2023, the Corporation paid appraisal and other costs totaling $9,750 from the Community's operating cash account in connection with a potential sale of the Community. These expenditures are not considered Reasonable Operating Expenses in accordance with the Regulatory Agreement and Program Obligations. Pursuant to Section 12 of the Regulatory Agreement, Community funds shall be withdrawn only in accordance with the provisions of the Regulatory Agreement for Reasonable Operating Expenses of the Community. Reasonable Operating Expenses means expenses that arise from the operation, maintenance and routine repair of the Community and that primarily benefit the Community (as opposed to Borrower) or as otherwise permitted by Program Obligations. These costs were inadvertently not reimbursed to the Community. As a result, the Corporation was not in compliance with the Regulatory Agreement.
Finding 2023-001
During the year ended July 31, 2023, the Corporation paid appraisal and other costs totaling $9,750 from the Community's operating cash account in connection with a potential sale of the Community. These expenditures are not considered Reasonable Operating Expenses in accordance with the Regulatory Agreement and Program Obligations. Pursuant to Section 12 of the Regulatory Agreement, Community funds shall be withdrawn only in accordance with the provisions of the Regulatory Agreement for Reasonable Operating Expenses of the Community. Reasonable Operating Expenses means expenses that arise from the operation, maintenance and routine repair of the Community and that primarily benefit the Community (as opposed to Borrower) or as otherwise permitted by Program Obligations. These costs were inadvertently not reimbursed to the Community. As a result, the Corporation was not in compliance with the Regulatory Agreement.