FAC Explorer

Audit 320274

FY End
2023-12-31
Total Expended
$1.78M
Findings
6
Programs
2
Organization: Canaan Manor Dayton (LA)
Year: 2023 Accepted: 2024-09-20
Auditor: Wharton CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
497535 2023-001 Significant Deficiency - N
497536 2023-002 Significant Deficiency Yes N
497537 2023-003 Significant Deficiency - L
1073977 2023-001 Significant Deficiency - N
1073978 2023-002 Significant Deficiency Yes N
1073979 2023-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.65M Yes 3
14.195 Section 8 Housing Assistance Payments Program $132,450 - 0

Contacts

Name Title Type
J1LQVU9M4N83 Willie Gable Auditee
5045245471 Brendel Wharton Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Summary of Significant Accounting Policies Accounting Policies: Basis of Presentation - This schedule includes the activity of NBC-USA Housing, Inc., Canaan Manor Dayton 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Indirect Cost Rate –Canaan Manor Dayton did not use the de minimis cost rate. Loan/Loan Guarantee Outstanding Balance - Supportive Housing for the Persons with Disabilities – Capital Advance - The balance outstanding at the end of the audit period was $1,645,300. De Minimis Rate Used: N Rate Explanation: Canaan Manor Dayton did not use the de minimis cost rate. Basis of Presentation - This schedule includes the activity of NBC-USA Housing, Inc., Canaan Manor Dayton 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Indirect Cost Rate –Canaan Manor Dayton did not use the de minimis cost rate. Loan/Loan Guarantee Outstanding Balance - Supportive Housing for the Persons with Disabilities – Capital Advance - The balance outstanding at the end of the audit period was $1,645,300.

Finding Details

Finding 2023-001
2023-1 Excess Residual Receipts Condition: The Project did not prepare a HUD 9250 to remit excess residual receipts, nor did it mail a check or transmit a wire of those funds. Criteria: According to the Consolidated Appropriations Act, 2017, owners subject to a Section 202 or 811 Project Rental Assistance Contract (PRAC) are required to remit any excess balance in a Residual Receipts account, greater than $250 per unit, to HUD’s Accounting Center upon termination or renewal of the PRAC contract. Cause: The cause is undeterminable. Effect: Residual receipts balance is $17,507 as of December 31, 2023. The allowable balance is $5,250 ($250 X 21 units), resulting in excess residual receipts of $12,257. Recommendation: I recommend the Property prepare the HUD 9250 requesting to remit excess funds to HUD.
Finding 2023-002
2023-2 Reserve for Replacement Deposits Not Made or Not Made Timely 2023-2 Reserve for Replacement Deposits Not Made Timely or Not At All Condition: The Project did not make the required deposits into the bank account on a monthly basis. There were 11 deposits made during the 2023 year. Criteria: According to the Regulatory Agreement, “mortgagor will establish and maintain a reserve fund for replacements in a separate account in a bank…Concurrently with the effective commencement of rental assistance payments under the Project Rental Assistance Contract, the Mortgagor will deposit an amount…per month unless a different date or amount is approved in writing by HUD”. Cause: The cause is undeterminable. Effect: The Project is not in compliance with the Regulatory Agreement. The cash balance was overstated by $1,076 related to deposits that were never made to this account. The balance was corrected during the audit. Recommendation: I recommend the Property make required monthly deposits according to the Regulatory Agreement.
Finding 2023-003
2023-3 Late HUD Financial Reporting Condition: The owner did not meet the HUD financial reporting requirement. Criteria: According to HUD’s Uniform Financial Reporting Standards rule, annually, an owner is required to submit a financial statement, prepared in accordance with generally accepted accounting principles (GAAP), in the electronic format specified by HUD. The unaudited financial statement is due three months after the owner’s fiscal year end and the audited financial statement is due nine months after its fiscal year-end (24 CFR section 5.801). The financial statement must include the financial activities of this program. Cause: The cause is undeterminable. Effect: The Project is not compliant with HUD program requirements. Recommendation: I recommend the owner meet HUD program requirements.
Finding 2023-001
2023-1 Excess Residual Receipts Condition: The Project did not prepare a HUD 9250 to remit excess residual receipts, nor did it mail a check or transmit a wire of those funds. Criteria: According to the Consolidated Appropriations Act, 2017, owners subject to a Section 202 or 811 Project Rental Assistance Contract (PRAC) are required to remit any excess balance in a Residual Receipts account, greater than $250 per unit, to HUD’s Accounting Center upon termination or renewal of the PRAC contract. Cause: The cause is undeterminable. Effect: Residual receipts balance is $17,507 as of December 31, 2023. The allowable balance is $5,250 ($250 X 21 units), resulting in excess residual receipts of $12,257. Recommendation: I recommend the Property prepare the HUD 9250 requesting to remit excess funds to HUD.
Finding 2023-002
2023-2 Reserve for Replacement Deposits Not Made or Not Made Timely 2023-2 Reserve for Replacement Deposits Not Made Timely or Not At All Condition: The Project did not make the required deposits into the bank account on a monthly basis. There were 11 deposits made during the 2023 year. Criteria: According to the Regulatory Agreement, “mortgagor will establish and maintain a reserve fund for replacements in a separate account in a bank…Concurrently with the effective commencement of rental assistance payments under the Project Rental Assistance Contract, the Mortgagor will deposit an amount…per month unless a different date or amount is approved in writing by HUD”. Cause: The cause is undeterminable. Effect: The Project is not in compliance with the Regulatory Agreement. The cash balance was overstated by $1,076 related to deposits that were never made to this account. The balance was corrected during the audit. Recommendation: I recommend the Property make required monthly deposits according to the Regulatory Agreement.
Finding 2023-003
2023-3 Late HUD Financial Reporting Condition: The owner did not meet the HUD financial reporting requirement. Criteria: According to HUD’s Uniform Financial Reporting Standards rule, annually, an owner is required to submit a financial statement, prepared in accordance with generally accepted accounting principles (GAAP), in the electronic format specified by HUD. The unaudited financial statement is due three months after the owner’s fiscal year end and the audited financial statement is due nine months after its fiscal year-end (24 CFR section 5.801). The financial statement must include the financial activities of this program. Cause: The cause is undeterminable. Effect: The Project is not compliant with HUD program requirements. Recommendation: I recommend the owner meet HUD program requirements.