FAC Explorer

Audit 320969

FY End
2023-12-31
Total Expended
$4.43M
Findings
4
Programs
2
Organization: Mt. Sinai Manor (LA)
Year: 2023 Accepted: 2024-09-25
Auditor: Wharton CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498203 2023-001 Significant Deficiency - N
498204 2023-002 Significant Deficiency - L
1074645 2023-001 Significant Deficiency - N
1074646 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $4.16M Yes 2
14.195 Section 8 Housing Assistance Payments Program $275,429 - 0

Contacts

Name Title Type
LXCAM96ZD4M7 Willie Gable Auditee
5045245471 Brendel Wharton Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Summary of Significant Accounting Policies Accounting Policies: Note 1 – Summary of Significant Accounting Policies Basis of Presentation - This schedule includes the activity of NBC Housing, Inc., Mt. Sinai Manor 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 – Mt. Sinai did not use the de minimis cost rate. Loan/Loan Guarantee Outstanding Balance - Supportive Housing for the Elderly – Capital Advance - The balance outstanding at the end of the audit period was $4,158,200. De Minimis Rate Used: N Rate Explanation: ML Gabriel did not use the de minimis cost rate. Basis of Presentation - This schedule includes the activity of NBC Housing, Inc., Mt. Sinai Manor 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 – Mt. Sinai did not use the de minimis cost rate. Loan/Loan Guarantee Outstanding Balance - Supportive Housing for the Elderly – Capital Advance - The balance outstanding at the end of the audit period was $4,158,200.

Finding Details

Finding 2023-001
Condition: The Project did not make the required deposits into the bank account on a monthly basis. 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 understated by $1,936. The balance was corrected during the audit. Recommendation: I recommend the Property make required monthly deposits according to the Regulatory Agreement.
Finding 2023-002
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
Condition: The Project did not make the required deposits into the bank account on a monthly basis. 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 understated by $1,936. The balance was corrected during the audit. Recommendation: I recommend the Property make required monthly deposits according to the Regulatory Agreement.
Finding 2023-002
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.