Audit 323552

FY End
2023-12-31
Total Expended
$9.78M
Findings
2
Programs
2

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
501491 2023-001 - Yes N
1077933 2023-001 - Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $9.30M Yes 1
14.195 Section 8 Housing Assistance Payments Program $486,254 Yes 0

Contacts

Name Title Type
Z3S9EKWL8FG6 Peggie Waddell Auditee
7329252608 Leonora Galleros Auditor
No contacts on file

Notes to SEFA

Title: GENERAL Accounting Policies: The accompanying schedule of expenditures of federal awards has been prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedules may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Project did not elect to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards presents the activity of all federal awards Robert H. Moore Housing Development Fund Corporation (the “Project”). The Project is described in the notes to the Project’s financial statements. All federal awards received directly consolidated from federal or state agencies, as well as federal awards passed through other government agencies, is included on the Schedule for Expenditures of Federal Awards.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards has been prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedules may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Project did not elect to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards has been prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedules may differ from amounts presented in or used in the preparation of the basic financial statements.
Title: HUD CAPITAL ADVANCE PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards has been prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedules may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Project did not elect to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. The Project’s total HUD Capital Advance of $9,298,400 is recognized as net assets with donor restrictions as of December 31, 2023 in the Project’s statement of financial position. The capital advance was used to finance the construction and development of the Project’s buildings. There was no loan activity for 2023. The total advance is included as federal expenditures in the schedule.
Title: DE MINIMIS INDIRECT COST Accounting Policies: The accompanying schedule of expenditures of federal awards has been prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedules may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Project did not elect to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. The Project did not elect to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

2023-001 Reserve for Replacement Assistance Listing #14.157 Supportive Housing for the Elderly - Section 202 Criteria Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition As of December 31, 2023, required deposits for 21 months amounting to $93,156 were not deposited to the replacement reserve account. Cause The Project’s cash flow deficiencies resulted in noncompliance with the reserve requirement. Effect Required replacement reserve was not complied with during fiscal year 2023. Questioned Cost None. Context A cumulative 21 months of monthly deposits were not made during the year. Recommendation We recommend that the Project regularly monitors deposits in the reserve for replacement to ensure that it complies with the requirements of 24 CFR sections 891.405 and 891.605 or request waiver due to cash flow issues. View of Responsible Official and Planned Corrective Action Subsequently, on August 2024, the shortfall in the reserve for replacement was funded.
2023-001 Reserve for Replacement Assistance Listing #14.157 Supportive Housing for the Elderly - Section 202 Criteria Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition As of December 31, 2023, required deposits for 21 months amounting to $93,156 were not deposited to the replacement reserve account. Cause The Project’s cash flow deficiencies resulted in noncompliance with the reserve requirement. Effect Required replacement reserve was not complied with during fiscal year 2023. Questioned Cost None. Context A cumulative 21 months of monthly deposits were not made during the year. Recommendation We recommend that the Project regularly monitors deposits in the reserve for replacement to ensure that it complies with the requirements of 24 CFR sections 891.405 and 891.605 or request waiver due to cash flow issues. View of Responsible Official and Planned Corrective Action Subsequently, on August 2024, the shortfall in the reserve for replacement was funded.