FAC Explorer

Audit 315230

FY End
2024-03-31
Total Expended
$6.12M
Findings
2
Programs
2
Organization: Presidio Gate Apartments 121-Eh 132-Np-Wah-L8 (CA)
Year: 2024 Accepted: 2024-07-16
Auditor: Forvis Mazars LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
478606 2024-001 Significant Deficiency - L
1055048 2024-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $4.69M Yes 1
14.195 Section 8 Housing Assistance Payments Program $1.44M - 0

Contacts

Name Title Type
VLSPLVJLTZZ4 Joseph Miller Auditee
6267867007 Becky Robins Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant and loan activity of the Project under programs of the federal government for the year ended March 31, 2024. 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 the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The project has elected to not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant and loan activity of the Project under programs of the federal government for the year ended March 31, 2024. 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 the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project.
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant and loan activity of the Project under programs of the federal government for the year ended March 31, 2024. 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 the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The project has elected to not use the de minimis cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant and loan activity of the Project under programs of the federal government for the year ended March 31, 2024. 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 the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The project has elected to not use the de minimis cost rate. The Project did not provide any federal awards to subrecipients during the year ended March 31, 2024.
Title: Indirect Costs Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant and loan activity of the Project under programs of the federal government for the year ended March 31, 2024. 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 the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The project has elected to not use the de minimis cost rate. The Project has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Loan Balance Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant and loan activity of the Project under programs of the federal government for the year ended March 31, 2024. 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 the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The project has elected to not use the de minimis cost rate. The federal loan program is administered directly by the Project, and balances and transactions relating to this program are included in the Project’s basic financial statements. Loans outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at March 31, 2024 was $4,563,557.

Finding Details

Finding 2024-001
Federal Program – Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects – HUD Project No. 121-11155 Assistance Listing Number 14.155 Housing and Urban Development Program Year 2023–2024 Criteria or Specific Requirement – Federal Financial Reporting Condition – The Project failed to file the required audited financial statements to HUD via the Real Estate Assessment Center (REAC) portal within 90 days, as required under the Regulatory Agreement. The Project is responsible for submitting the audited financial statements and supplementary information on time, reporting all required information on its reports, and establishing internal controls to ensure such reports are submitted within federal requirements. Questioned Costs – N/A Context – The Project did not submit the required audited financial statements in accordance with the 90-day deadline under the Regulatory Agreement for its mortgage payable. The audited financial statements were not issued until 11 days after the requirement. Effect – The Project was not compliant with the 90-day audit deadline under the Regulatory Agreement for its mortgage payable. Cause – Due to staffing turnover and other changes at the Project, the audited financial statements were not submitted timely as certain items were still being completed as a part of the audit process. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The Project should ensure the design and appropriate operating effectiveness of controls surrounding the annual financial statement audit to ensure they are reported and submitted within the required time frame. Views of Responsible Officials and Planned Corrective Actions – Management has moved the accounting responsibility for the Project to an established team and will ensure that the required annual audit report is issued and filed with REAC within the 90-day deadline in the future.
Finding 2024-001
Federal Program – Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects – HUD Project No. 121-11155 Assistance Listing Number 14.155 Housing and Urban Development Program Year 2023–2024 Criteria or Specific Requirement – Federal Financial Reporting Condition – The Project failed to file the required audited financial statements to HUD via the Real Estate Assessment Center (REAC) portal within 90 days, as required under the Regulatory Agreement. The Project is responsible for submitting the audited financial statements and supplementary information on time, reporting all required information on its reports, and establishing internal controls to ensure such reports are submitted within federal requirements. Questioned Costs – N/A Context – The Project did not submit the required audited financial statements in accordance with the 90-day deadline under the Regulatory Agreement for its mortgage payable. The audited financial statements were not issued until 11 days after the requirement. Effect – The Project was not compliant with the 90-day audit deadline under the Regulatory Agreement for its mortgage payable. Cause – Due to staffing turnover and other changes at the Project, the audited financial statements were not submitted timely as certain items were still being completed as a part of the audit process. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The Project should ensure the design and appropriate operating effectiveness of controls surrounding the annual financial statement audit to ensure they are reported and submitted within the required time frame. Views of Responsible Officials and Planned Corrective Actions – Management has moved the accounting responsibility for the Project to an established team and will ensure that the required annual audit report is issued and filed with REAC within the 90-day deadline in the future.