Audit 321429

FY End
2024-06-30
Total Expended
$5.66M
Findings
4
Programs
2
Year: 2024 Accepted: 2024-09-26
Auditor: Snd Partners LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
498748 2024-001 - Yes N
498749 2024-001 - Yes N
1075190 2024-001 - Yes N
1075191 2024-001 - Yes N

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $978,000 Yes 0
14.157 Supportive Housing for the Elderly $175,996 Yes 1

Contacts

Name Title Type
DG3JAJNA2NU3 Marizza Bautista-Ong Auditee
4158646432 Roza Chan Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principals contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Mission Housing Development Property IV, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Mission Housing Development Property IV, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Mission Housing Development Property IV, Inc., HUD Project No. 121-EE031-NP, 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 Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Mission Housing Development Property IV, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Mission Housing Development Property IV, Inc.
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principals contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Mission Housing Development Property IV, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Mission Housing Development Property IV, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principals contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Mission Housing Development Property IV, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE C – LOAN PROGRAM BALANCES OUTSTANDING Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principals contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Mission Housing Development Property IV, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Mission Housing Development Property IV, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Loan balances outstanding as of June 30, 2024 are as follows: Supportive Housing for the Elderly Capital Advance Mortgage $4,508,500 Community Development Block Grant Program Loan $ 978,000

Finding Details

Finding # 2024-001 Federal Grantor: AL# / Program : Type of Finding: Finding Resolution Information on Universe Population Size: Sample size: Criteria: Statement of Condition: Cause: Effect or Potential Effect: Auditor Non-Compliance Code: Questioned Costs: $ - Reporting Views of Responsible Officials: Context: Recommendation: Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Response Indicator: Completion Date: Response: We recommend the Project make the required deposit to the reserve for replacement account or request HUD approval to waive deposits until cash flow improves. Reserve for replacement is underfunded by $26,376. Project is not in compliance with HUD compliance requirements. N - Replacement Reserve Deposits N/A 6/30/2025 Mission Housing and Property Management are actively working on the Budget Based Rent Increase (BBRI) and project to submit before the due date of February 2025 for next FY. This will increase cash flow and allow the project to make the required monthly reserve deposits, as well as the past due reserve deposit amount. Previously, the project was unable to obtain a waiver of deposits due to not submitting the BBRI. When the BBRI is obtained, we have the option to submit a waiver for replacement deposits if needed. Project did not make payments due to cash flow issues. In Process Project is required to make monthly deposits in the amount of $2,198 to the reserve for replacement as required by HUD. U.S. Department of Housing and Urban Development 14.157- Supportive Housing for the Elderly under Section 202 Federal Award Finding Agrees Project is required to make monthly deposits to the reserve for replacements of $2,198. Tests were performed on the twelve required monthly deposits. Mission Housing and Property Management are actively working on the Budget Based Rent Increase (BBRI) and project to submit before the due date of February 2025 for next FY. This will increase cash flow and allow the project to make the required monthly reserve deposits, as well as the past due reserve deposit amount. Previously, the project was unable to obtain a waiver of deposits due to not submitting the BBRI. When the BBRI is obtained, we have the option to submit a waiver for replacement deposits if needed. Mission Housing and Property Management are actively rent increase to increase cash flow and allow the project to make the required monthly reserve deposits and have the option to submit a waiver for replacement deposits if needed.
Finding # 2024-001 Federal Grantor: AL# / Program : Type of Finding: Finding Resolution Information on Universe Population Size: Sample size: Criteria: Statement of Condition: Cause: Effect or Potential Effect: Auditor Non-Compliance Code: Questioned Costs: $ - Reporting Views of Responsible Officials: Context: Recommendation: Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Response Indicator: Completion Date: Response: We recommend the Project make the required deposit to the reserve for replacement account or request HUD approval to waive deposits until cash flow improves. Reserve for replacement is underfunded by $26,376. Project is not in compliance with HUD compliance requirements. N - Replacement Reserve Deposits N/A 6/30/2025 Mission Housing and Property Management are actively working on the Budget Based Rent Increase (BBRI) and project to submit before the due date of February 2025 for next FY. This will increase cash flow and allow the project to make the required monthly reserve deposits, as well as the past due reserve deposit amount. Previously, the project was unable to obtain a waiver of deposits due to not submitting the BBRI. When the BBRI is obtained, we have the option to submit a waiver for replacement deposits if needed. Project did not make payments due to cash flow issues. In Process Project is required to make monthly deposits in the amount of $2,198 to the reserve for replacement as required by HUD. U.S. Department of Housing and Urban Development 14.157- Supportive Housing for the Elderly under Section 202 Federal Award Finding Agrees Project is required to make monthly deposits to the reserve for replacements of $2,198. Tests were performed on the twelve required monthly deposits. Mission Housing and Property Management are actively working on the Budget Based Rent Increase (BBRI) and project to submit before the due date of February 2025 for next FY. This will increase cash flow and allow the project to make the required monthly reserve deposits, as well as the past due reserve deposit amount. Previously, the project was unable to obtain a waiver of deposits due to not submitting the BBRI. When the BBRI is obtained, we have the option to submit a waiver for replacement deposits if needed. Mission Housing and Property Management are actively rent increase to increase cash flow and allow the project to make the required monthly reserve deposits and have the option to submit a waiver for replacement deposits if needed.
Finding # 2024-001 Federal Grantor: AL# / Program : Type of Finding: Finding Resolution Information on Universe Population Size: Sample size: Criteria: Statement of Condition: Cause: Effect or Potential Effect: Auditor Non-Compliance Code: Questioned Costs: $ - Reporting Views of Responsible Officials: Context: Recommendation: Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Response Indicator: Completion Date: Response: We recommend the Project make the required deposit to the reserve for replacement account or request HUD approval to waive deposits until cash flow improves. Reserve for replacement is underfunded by $26,376. Project is not in compliance with HUD compliance requirements. N - Replacement Reserve Deposits N/A 6/30/2025 Mission Housing and Property Management are actively working on the Budget Based Rent Increase (BBRI) and project to submit before the due date of February 2025 for next FY. This will increase cash flow and allow the project to make the required monthly reserve deposits, as well as the past due reserve deposit amount. Previously, the project was unable to obtain a waiver of deposits due to not submitting the BBRI. When the BBRI is obtained, we have the option to submit a waiver for replacement deposits if needed. Project did not make payments due to cash flow issues. In Process Project is required to make monthly deposits in the amount of $2,198 to the reserve for replacement as required by HUD. U.S. Department of Housing and Urban Development 14.157- Supportive Housing for the Elderly under Section 202 Federal Award Finding Agrees Project is required to make monthly deposits to the reserve for replacements of $2,198. Tests were performed on the twelve required monthly deposits. Mission Housing and Property Management are actively working on the Budget Based Rent Increase (BBRI) and project to submit before the due date of February 2025 for next FY. This will increase cash flow and allow the project to make the required monthly reserve deposits, as well as the past due reserve deposit amount. Previously, the project was unable to obtain a waiver of deposits due to not submitting the BBRI. When the BBRI is obtained, we have the option to submit a waiver for replacement deposits if needed. Mission Housing and Property Management are actively rent increase to increase cash flow and allow the project to make the required monthly reserve deposits and have the option to submit a waiver for replacement deposits if needed.
Finding # 2024-001 Federal Grantor: AL# / Program : Type of Finding: Finding Resolution Information on Universe Population Size: Sample size: Criteria: Statement of Condition: Cause: Effect or Potential Effect: Auditor Non-Compliance Code: Questioned Costs: $ - Reporting Views of Responsible Officials: Context: Recommendation: Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Response Indicator: Completion Date: Response: We recommend the Project make the required deposit to the reserve for replacement account or request HUD approval to waive deposits until cash flow improves. Reserve for replacement is underfunded by $26,376. Project is not in compliance with HUD compliance requirements. N - Replacement Reserve Deposits N/A 6/30/2025 Mission Housing and Property Management are actively working on the Budget Based Rent Increase (BBRI) and project to submit before the due date of February 2025 for next FY. This will increase cash flow and allow the project to make the required monthly reserve deposits, as well as the past due reserve deposit amount. Previously, the project was unable to obtain a waiver of deposits due to not submitting the BBRI. When the BBRI is obtained, we have the option to submit a waiver for replacement deposits if needed. Project did not make payments due to cash flow issues. In Process Project is required to make monthly deposits in the amount of $2,198 to the reserve for replacement as required by HUD. U.S. Department of Housing and Urban Development 14.157- Supportive Housing for the Elderly under Section 202 Federal Award Finding Agrees Project is required to make monthly deposits to the reserve for replacements of $2,198. Tests were performed on the twelve required monthly deposits. Mission Housing and Property Management are actively working on the Budget Based Rent Increase (BBRI) and project to submit before the due date of February 2025 for next FY. This will increase cash flow and allow the project to make the required monthly reserve deposits, as well as the past due reserve deposit amount. Previously, the project was unable to obtain a waiver of deposits due to not submitting the BBRI. When the BBRI is obtained, we have the option to submit a waiver for replacement deposits if needed. Mission Housing and Property Management are actively rent increase to increase cash flow and allow the project to make the required monthly reserve deposits and have the option to submit a waiver for replacement deposits if needed.