Audit 321370

FY End
2023-12-31
Total Expended
$5.58M
Findings
26
Programs
2
Organization: Margaret Ford Manor, Ltd. (IL)
Year: 2023 Accepted: 2024-09-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
498648 2023-001 Material Weakness - L
498649 2023-001 Material Weakness - L
498650 2023-001 Material Weakness - L
498651 2023-002 Material Weakness - B
498652 2023-003 Material Weakness - E
498653 2023-003 Material Weakness - E
498654 2023-003 Material Weakness - E
498655 2023-004 Material Weakness - E
498656 2023-004 Material Weakness - E
498657 2023-004 Material Weakness - E
498658 2023-005 Material Weakness - E
498659 2023-005 Material Weakness - E
498660 2023-005 Material Weakness - E
1075090 2023-001 Material Weakness - L
1075091 2023-001 Material Weakness - L
1075092 2023-001 Material Weakness - L
1075093 2023-002 Material Weakness - B
1075094 2023-003 Material Weakness - E
1075095 2023-003 Material Weakness - E
1075096 2023-003 Material Weakness - E
1075097 2023-004 Material Weakness - E
1075098 2023-004 Material Weakness - E
1075099 2023-004 Material Weakness - E
1075100 2023-005 Material Weakness - E
1075101 2023-005 Material Weakness - E
1075102 2023-005 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $4.74M Yes 5
14.195 Section 8 Housing Assistance Payments Program $106,297 Yes 4

Contacts

Name Title Type
NMJ9B8JDKE99 Takisha Artis Auditee
8158069990 Reginald Keith Mannie Auditor
No contacts on file

Notes to SEFA

Title: U.S. Department of Housing and Urban Development Loan Program Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Margaret Ford Manor, Ltd. HUD Project No. 071-EE114, 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Margaret Ford Manor, Ltd, it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Margaret Ford Manor, Ltd. De Minimis Rate Used: N Rate Explanation: Margaret Ford Manor, Ltd. has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. The Corporation received a Capital Advance on December 1, 1998 in the amount of $4,744,400 under Federal Assistance Listing Number 14.157, which requires the compliance with tenant eligibility restrictions for 40 years.
Title: U.S. Department of Housing and Urban Development Excess Income Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Margaret Ford Manor, Ltd. HUD Project No. 071-EE114, 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Margaret Ford Manor, Ltd, it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Margaret Ford Manor, Ltd. De Minimis Rate Used: N Rate Explanation: Margaret Ford Manor, Ltd. has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. During the fiscal year of 2021, the Project received excess income in the amount of $106,297 from Housing Assistance Payments and is recorded as Due to HUS-Excess Income.

Finding Details

As a result of our audit, we proposed nineteen (19) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments were material to the financial statements. Adjustments were necessary for basis areas such as prepaid insurance, replacement reserve, fixed assets, accumulated depreciation, accrued wages and payroll taxes, capital lease obligation, accrued expenses, note payable-insurance premium finance, mortgage payable, revenue, and expenses.
As a result of our audit, we proposed nineteen (19) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments were material to the financial statements. Adjustments were necessary for basis areas such as prepaid insurance, replacement reserve, fixed assets, accumulated depreciation, accrued wages and payroll taxes, capital lease obligation, accrued expenses, note payable-insurance premium finance, mortgage payable, revenue, and expenses.
As a result of our audit, we proposed nineteen (19) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments were material to the financial statements. Adjustments were necessary for basis areas such as prepaid insurance, replacement reserve, fixed assets, accumulated depreciation, accrued wages and payroll taxes, capital lease obligation, accrued expenses, note payable-insurance premium finance, mortgage payable, revenue, and expenses.
During our testing of cash disbursements, we noted the following: 1.      The prior year's vendor’s invoices were recorded in the current year's books and records. Five (five) exceptions were noted. 2.      No approval on the vendor’s invoice. Nineteen (19) exceptions were noted.
The Enterprise Income Verifications (EIV) were not obtained after 90 days from the date of move-in from the following tenants:
The Enterprise Income Verifications (EIV) were not obtained after 90 days from the date of move-in from the following tenants:
The Enterprise Income Verifications (EIV) were not obtained after 90 days from the date of move-in from the following tenants:
During our Testing of Eligibility, we noted that the tenants’ utility allowance effective date of the annual gross rent approved by HUD was not properly stated on the lease and Form-HUD 50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures as follows:
During our Testing of Eligibility, we noted that the tenants’ utility allowance effective date of the annual gross rent approved by HUD was not properly stated on the lease and Form-HUD 50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures as follows:
During our Testing of Eligibility, we noted that the tenants’ utility allowance effective date of the annual gross rent approved by HUD was not properly stated on the lease and Form-HUD 50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures as follows:
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 Move-Outs, the following tenant’s security deposit was not refunded within 30 days after the move-out date:
As a result of our audit, we proposed nineteen (19) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments were material to the financial statements. Adjustments were necessary for basis areas such as prepaid insurance, replacement reserve, fixed assets, accumulated depreciation, accrued wages and payroll taxes, capital lease obligation, accrued expenses, note payable-insurance premium finance, mortgage payable, revenue, and expenses.
As a result of our audit, we proposed nineteen (19) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments were material to the financial statements. Adjustments were necessary for basis areas such as prepaid insurance, replacement reserve, fixed assets, accumulated depreciation, accrued wages and payroll taxes, capital lease obligation, accrued expenses, note payable-insurance premium finance, mortgage payable, revenue, and expenses.
As a result of our audit, we proposed nineteen (19) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments were material to the financial statements. Adjustments were necessary for basis areas such as prepaid insurance, replacement reserve, fixed assets, accumulated depreciation, accrued wages and payroll taxes, capital lease obligation, accrued expenses, note payable-insurance premium finance, mortgage payable, revenue, and expenses.
During our testing of cash disbursements, we noted the following: 1.      The prior year's vendor’s invoices were recorded in the current year's books and records. Five (five) exceptions were noted. 2.      No approval on the vendor’s invoice. Nineteen (19) exceptions were noted.
The Enterprise Income Verifications (EIV) were not obtained after 90 days from the date of move-in from the following tenants:
The Enterprise Income Verifications (EIV) were not obtained after 90 days from the date of move-in from the following tenants:
The Enterprise Income Verifications (EIV) were not obtained after 90 days from the date of move-in from the following tenants:
During our Testing of Eligibility, we noted that the tenants’ utility allowance effective date of the annual gross rent approved by HUD was not properly stated on the lease and Form-HUD 50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures as follows:
During our Testing of Eligibility, we noted that the tenants’ utility allowance effective date of the annual gross rent approved by HUD was not properly stated on the lease and Form-HUD 50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures as follows:
During our Testing of Eligibility, we noted that the tenants’ utility allowance effective date of the annual gross rent approved by HUD was not properly stated on the lease and Form-HUD 50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures as follows:
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 Move-Outs, the following tenant’s security deposit was not refunded within 30 days after the move-out date: