FAC Explorer

Audit 323052

FY End
2023-12-31
Total Expended
$1.45M
Findings
6
Programs
2
Organization: Liberty Terrace Apartments (IN)
Year: 2023 Accepted: 2024-09-30
Auditor: Dauby O'Connor & Zaleski LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
500271 2023-001 Significant Deficiency - P
500272 2023-002 Significant Deficiency - P
500273 2023-003 Significant Deficiency - P
1076713 2023-001 Significant Deficiency - P
1076714 2023-002 Significant Deficiency - P
1076715 2023-003 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.134 Mortgage Insurance Rental Housing $1.14M Yes 3
14.195 Project-Based Rental Assistance (pbra) $310,168 - 0

Contacts

Name Title Type
ZN34KNFH9MN8 Danny Henderson Auditee
8127741570 Jacob Buehler Auditor
No contacts on file

Notes to SEFA

Title: Note 3 Accounting Policies: The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Corporation has elected to not use the 10% de minimis cost rate. The balance of the HUD Section 207 pursuant to Section 223(a)(7) mortgage note payable at December 31, 2023 is $1,136,832.

Finding Details

Finding 2023-001
Finding reference number: #2023-001 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) Auditor non-compliance code: J – Unauthorized management fees Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $10,483 Statement of condition of #2023-001 (CFDA No. 14.134): The Corporation did not obtain a HUD approved management certification (HUD Form 9839-B) for the new management agent effective beginning September 1, 2023. Criteria: The Regulatory Agreement requires the Property to have a HUD approved management certification (HUD Form 9839-B) in order to manage the Property. Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Cause: The Corporation has not received HUD's approval of the management certification. Recommendation: The management certification should be submitted to HUD for retroactive approval for the period beginning September 1, 2023. Completion date: Outstanding Reporting response: The Corporation concurs with the recommendation and will submit the management certification to HUD for approval retroactively.
Finding 2023-002
Finding reference number: #2023-002 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) Auditor non-compliance code: Z - Other Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $-0- Statement of condition of #2023-002 (CFDA No. 14.134): The Agent did not complete a management entity profile (HUD Form 9832) upon the change in management agents effective beginning September 1, 2023. Criteria: HUD Handbook 4381.5 requires the Agent to have a management entity profile (HUD Form 9832). Effect or potential effect: The Agent is not in compliance with HUD Handbook 4381.5. Cause: The Agent has not completed a management entity profile. Recommendation: The management entity profile should be completed for the period beginning September 1, 2023. Completion date: Outstanding Reporting response: The Agent concurs with the recommendation and will complete the management entity profile.
Finding 2023-003
Finding reference number: #2023-003 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) Auditor non-compliance code: Z - Other Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $-0- Statement of condition of #2023-003 (CFDA No. 14.134): The Corporation did not complete an affirmative fair housing marketing plan (HUD Form 935.2A) for the new management agent effective beginning September 1, 2023. Criteria: HUD Handbook 8025.1 requires the Corporation to have an affirmative fair housing marketing plan (HUD Form 935.2A). Effect or potential effect: The Corporation is not in compliance with HUD Handbook 8025.1. Cause: The Corporation has not completed an affirmative fair housing marketing plan. Recommendation: The affirmative fair housing marketing plan should be completed for the period beginning September 1, 2023 and submitted to HUD for approval. Completion date: Outstanding Reporting response: The Corporation concurs with the recommendation and will complete the affirmative fair housing marketing plan and submit to HUD for approval.
Finding 2023-001
Finding reference number: #2023-001 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) Auditor non-compliance code: J – Unauthorized management fees Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $10,483 Statement of condition of #2023-001 (CFDA No. 14.134): The Corporation did not obtain a HUD approved management certification (HUD Form 9839-B) for the new management agent effective beginning September 1, 2023. Criteria: The Regulatory Agreement requires the Property to have a HUD approved management certification (HUD Form 9839-B) in order to manage the Property. Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Cause: The Corporation has not received HUD's approval of the management certification. Recommendation: The management certification should be submitted to HUD for retroactive approval for the period beginning September 1, 2023. Completion date: Outstanding Reporting response: The Corporation concurs with the recommendation and will submit the management certification to HUD for approval retroactively.
Finding 2023-002
Finding reference number: #2023-002 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) Auditor non-compliance code: Z - Other Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $-0- Statement of condition of #2023-002 (CFDA No. 14.134): The Agent did not complete a management entity profile (HUD Form 9832) upon the change in management agents effective beginning September 1, 2023. Criteria: HUD Handbook 4381.5 requires the Agent to have a management entity profile (HUD Form 9832). Effect or potential effect: The Agent is not in compliance with HUD Handbook 4381.5. Cause: The Agent has not completed a management entity profile. Recommendation: The management entity profile should be completed for the period beginning September 1, 2023. Completion date: Outstanding Reporting response: The Agent concurs with the recommendation and will complete the management entity profile.
Finding 2023-003
Finding reference number: #2023-003 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) Auditor non-compliance code: Z - Other Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $-0- Statement of condition of #2023-003 (CFDA No. 14.134): The Corporation did not complete an affirmative fair housing marketing plan (HUD Form 935.2A) for the new management agent effective beginning September 1, 2023. Criteria: HUD Handbook 8025.1 requires the Corporation to have an affirmative fair housing marketing plan (HUD Form 935.2A). Effect or potential effect: The Corporation is not in compliance with HUD Handbook 8025.1. Cause: The Corporation has not completed an affirmative fair housing marketing plan. Recommendation: The affirmative fair housing marketing plan should be completed for the period beginning September 1, 2023 and submitted to HUD for approval. Completion date: Outstanding Reporting response: The Corporation concurs with the recommendation and will complete the affirmative fair housing marketing plan and submit to HUD for approval.