As a result of our audit, we proposed twelve (12) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments proposed were material to the financial statements. Adjustments were necessary for basis areas cash, accumulated depreciation, accounts payable, accrued wages payable, accrued payroll taxes, PPP loans, net assets, revenue, and expenses.
As a result of our audit, we proposed twelve (12) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments proposed were material to the financial statements. Adjustments were necessary for basis areas cash, accumulated depreciation, accounts payable, accrued wages payable, accrued payroll taxes, PPP loans, net assets, revenue, and expenses.
The Project did not make the required monthly deposit to the replacement reserve account. Only 10 deposits were made during 2022. The replacement reserve account is unfunded by $22,456.
The Project did not make the required monthly deposit to the replacement reserve account. Only 10 deposits were made during 2022. The replacement reserve account is unfunded by $22,456.
For the procurement of small purchases over $10,000, the Management Agent did not obtain price or rate quotations from an adequate number of qualified sources for the following procurements per the Uniform Guidance:
During our testing of cash disbursements, we noted the following: 1. Timesheet provided does not show hours worked. 2 (two) exceptions were noted
2. No approval on vendor’s invoice. 1 (one) exceptions were noted.
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in from the following tenants:
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in from the following tenants:
During our testing of Tenant Move-in, we noted that prorate of tenant rent was not performed for the following:
During our testing of Tenant Move-in, we noted that prorate of tenant rent was not performed for the following:
During our Testing of Move-Outs, the following tenant’s security deposit was not refunded within 30 days after the move-out date:
During our Testing of Move-Outs, the following tenant’s security deposit was not refunded within 30 days after the move-out date:
During our testing of Tenant Eligibility for Thomas, Sondra, Unit# 408, and Move-In Date 7/01/2022, the following noted:1. The citizenship declaration was not obtained.
2. Per Form 50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility & Rent Procedures, no income verification was performed per Section D Income Information.
During our testing of Tenant Eligibility for Thomas, Sondra, Unit# 408, and Move-In Date 7/01/2022, the following noted:1. The citizenship declaration was not obtained.
2. Per Form 50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility & Rent Procedures, no income verification was performed per Section D Income Information.
Per examination of insurance coverage, we noted that the Project does not have Workers Compensation and Employer Liability Insurance coverage for its employees for the period 1/01/2022 through 12/31/2022.
The Corporation entered into Paycheck Protection Program Loans (‘PPP”) for $49,775 through Cross River Bank. The PPP Loan has been charged off by the Lender and purchased by the SBA, The Corporation is still liable for the PPP Loan. Due to the PPP loan not being approved by HUD, payment of principal and interest of the PPP cannot be paid with current Project funds. Therefore, a PPP loan is an Unauthorized Acquisition of Liabilities.
In the prior years, the Corporation owes the project $18,561 for overpayment of management fee-$9,626 and other advances-$8,935. Per audit compliance procedures, the Due to Owner was not approved by HUD and is considered a finding.
As a result of our audit, we proposed twelve (12) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments proposed were material to the financial statements. Adjustments were necessary for basis areas cash, accumulated depreciation, accounts payable, accrued wages payable, accrued payroll taxes, PPP loans, net assets, revenue, and expenses.
As a result of our audit, we proposed twelve (12) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments proposed were material to the financial statements. Adjustments were necessary for basis areas cash, accumulated depreciation, accounts payable, accrued wages payable, accrued payroll taxes, PPP loans, net assets, revenue, and expenses.
The Project did not make the required monthly deposit to the replacement reserve account. Only 10 deposits were made during 2022. The replacement reserve account is unfunded by $22,456.
The Project did not make the required monthly deposit to the replacement reserve account. Only 10 deposits were made during 2022. The replacement reserve account is unfunded by $22,456.
For the procurement of small purchases over $10,000, the Management Agent did not obtain price or rate quotations from an adequate number of qualified sources for the following procurements per the Uniform Guidance:
During our testing of cash disbursements, we noted the following: 1. Timesheet provided does not show hours worked. 2 (two) exceptions were noted
2. No approval on vendor’s invoice. 1 (one) exceptions were noted.
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in from the following tenants:
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in from the following tenants:
During our testing of Tenant Move-in, we noted that prorate of tenant rent was not performed for the following:
During our testing of Tenant Move-in, we noted that prorate of tenant rent was not performed for the following:
During our Testing of Move-Outs, the following tenant’s security deposit was not refunded within 30 days after the move-out date:
During our Testing of Move-Outs, the following tenant’s security deposit was not refunded within 30 days after the move-out date:
During our testing of Tenant Eligibility for Thomas, Sondra, Unit# 408, and Move-In Date 7/01/2022, the following noted:1. The citizenship declaration was not obtained.
2. Per Form 50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility & Rent Procedures, no income verification was performed per Section D Income Information.
During our testing of Tenant Eligibility for Thomas, Sondra, Unit# 408, and Move-In Date 7/01/2022, the following noted:1. The citizenship declaration was not obtained.
2. Per Form 50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility & Rent Procedures, no income verification was performed per Section D Income Information.
Per examination of insurance coverage, we noted that the Project does not have Workers Compensation and Employer Liability Insurance coverage for its employees for the period 1/01/2022 through 12/31/2022.
The Corporation entered into Paycheck Protection Program Loans (‘PPP”) for $49,775 through Cross River Bank. The PPP Loan has been charged off by the Lender and purchased by the SBA, The Corporation is still liable for the PPP Loan. Due to the PPP loan not being approved by HUD, payment of principal and interest of the PPP cannot be paid with current Project funds. Therefore, a PPP loan is an Unauthorized Acquisition of Liabilities.
In the prior years, the Corporation owes the project $18,561 for overpayment of management fee-$9,626 and other advances-$8,935. Per audit compliance procedures, the Due to Owner was not approved by HUD and is considered a finding.