FAC Explorer

Audit 317049

FY End
2022-12-31
Total Expended
$4.07M
Findings
4
Programs
2
Organization: Cda Midway Plaisance Association (IL)
Year: 2022 Accepted: 2024-08-12
Auditor: Morrison & Morrison

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
480942 2022-001 - - C
480943 2022-002 Significant Deficiency - J
1057384 2022-001 - - C
1057385 2022-002 Significant Deficiency - J

Programs

ALN Program Spent Major Findings
14.157 Section 202 Capital Advance $3.62M Yes 0
14.182 Project Rental Assistance Contract $452,767 - 2

Contacts

Name Title Type
NY1QK9LLHK55 Christine Oliver Auditee
6307896709 Terry Calderone Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of CDA Midway Plaisance Association and is presented on the accrual basis of accounting. The information in this 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 Award (Uniform Guidance). Because the schedule presents only a selected portion of the operations of CDA Midway Plaisance Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of CDA Midway Plaisance Association. De Minimis Rate Used: N Rate Explanation: The auditee is a 100% Section Housing Project SECTION 202 CAPITAL ADVANCE (14.157) - Balances outstanding at the end of the audit period were 3618800.

Finding Details

Finding 2022-001
Finding #22-01 Replacement Reserve Condition: Monthly deposits to the Replacement Reserve were not made from September-December 2022 unit after year end. 4 monthly deposits of $3,000 totaling $12,000 for 2022 were not paid to the replacement reserve in 2022. Criteria: The Project is required to fund the Replacement Reserve per the regulatory agreement. Effect: Under funding of the Replacement Reserve. Cause: Management believes the approved suspension of the Replacement Reserve for the prior October 1, 2022 through September 30, 2023 would be continued for another year. Recommendation: Obtain an additional one year suspension or continue funding the Replacement Reserve. Auditor's Summary of the Auditees Comments on Findings and Recommendation Date: Deposit all past due Replacement Reserve required deposits if HUD approval of suspension is not received. Completion Date: Resolved Response: Management deposited the Replacement Reserve funding in February 2023. Response: Management deposited the Replacement Reserve funding in February 2023.
Finding 2022-002
Finding #22-02 PRAC collections Condition: The Project has not received any PRAC receipts in 2022 or subsequent to year end for years 2021 and 2022. Criteria: The Project requires monthly submission in order to sustain a going concern. Effect: The Project has to obtain Project advances to sustain operations. Questioned Costs: $885,216 Cause: Management and HUD oversight in overseeing PRAC monthly submissions. Recommendation: Work with HUD officials to process PRAC receipts. Auditor’s Summary of the Auditees Comments on Findings and Recommendation Date: Management is working with HUD’s Debbie Gray, Darletta Baugh and TRACS consultants to process the vouchers in the HUD TRACS system. The renewed PRAC contract was received by HUD’s Lucille Ellison, HUD funding specialist on August 10, 2023. Completion Date: 8/23/2023 Response: Management is working with HUD’s Darletta Baugh - the Project manager for the processing of submissions now that the contract is renewed through September 2023.
Finding 2022-001
Finding #22-01 Replacement Reserve Condition: Monthly deposits to the Replacement Reserve were not made from September-December 2022 unit after year end. 4 monthly deposits of $3,000 totaling $12,000 for 2022 were not paid to the replacement reserve in 2022. Criteria: The Project is required to fund the Replacement Reserve per the regulatory agreement. Effect: Under funding of the Replacement Reserve. Cause: Management believes the approved suspension of the Replacement Reserve for the prior October 1, 2022 through September 30, 2023 would be continued for another year. Recommendation: Obtain an additional one year suspension or continue funding the Replacement Reserve. Auditor's Summary of the Auditees Comments on Findings and Recommendation Date: Deposit all past due Replacement Reserve required deposits if HUD approval of suspension is not received. Completion Date: Resolved Response: Management deposited the Replacement Reserve funding in February 2023. Response: Management deposited the Replacement Reserve funding in February 2023.
Finding 2022-002
Finding #22-02 PRAC collections Condition: The Project has not received any PRAC receipts in 2022 or subsequent to year end for years 2021 and 2022. Criteria: The Project requires monthly submission in order to sustain a going concern. Effect: The Project has to obtain Project advances to sustain operations. Questioned Costs: $885,216 Cause: Management and HUD oversight in overseeing PRAC monthly submissions. Recommendation: Work with HUD officials to process PRAC receipts. Auditor’s Summary of the Auditees Comments on Findings and Recommendation Date: Management is working with HUD’s Debbie Gray, Darletta Baugh and TRACS consultants to process the vouchers in the HUD TRACS system. The renewed PRAC contract was received by HUD’s Lucille Ellison, HUD funding specialist on August 10, 2023. Completion Date: 8/23/2023 Response: Management is working with HUD’s Darletta Baugh - the Project manager for the processing of submissions now that the contract is renewed through September 2023.