Audit 324579

FY End
2024-06-30
Total Expended
$5.74M
Findings
2
Programs
2
Organization: Meds Apartments (IL)
Year: 2024 Accepted: 2024-10-12
Auditor: Cohnreznick LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
502570 2024-001 Significant Deficiency Yes L
1079012 2024-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
14.134 Mortgage Insurance Rental Housing $4.41M Yes 0
14.850 Public Housing Operating Fund $1.33M Yes 1

Contacts

Name Title Type
F7K2L8PNNNF5 Brian Nawrocki Auditee
3128425500 Doug Gonzalez Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: MEDS Apartments, has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of MEDS Apartments, HUD Project No. 071-11280, under programs of the federal government for the year ended June 30, 2024. 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 MEDS Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of MEDS Apartments For the year ended June 30, 2024, no awards were passed through to subrecipients.
Title: Note 2 - 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, as applicable the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: MEDS Apartments, has not elected 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, as applicable the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 - Indirect cost rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: MEDS Apartments, has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. MEDS Apartments, has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4 - U.S. Department of Housing and Urban Development loan program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: MEDS Apartments, has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. MEDS Apartments, has received a mortgage note guaranteed by the Federal Housing Administration. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. MEDS Apartments received no additional loans during the year. The balance of the loan outstanding June 30, 2024 consists of: Federal Assisted Listing Number Program Name Outstanding Balance at June 30, 2024 14.134 Section 223(f) - Mortgage insurance - Rental Housing $ 4,276,580

Finding Details

Federal Award Findings and Questioned Costs Department of Housing and Urban Development Finding No. 2024-001; Section 207/223(f) Mortgage Insurance, Assistance Listing 14.134 Criteria Uniform Guidance and Federal Audit Clearinghouse requirements require that non-federal entities transmit their annual reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit period. Condition The annual reporting package for the year ended June 30, 2023 has not been submitted to the Federal Audit Clearinghouse within the required time frame. Cause Procedures in place were not adequate to ensure the timely submission of the reporting package. Effect or Potential Effect Noncompliance with Uniform Guidance and Federal Audit Clearinghouse requirements. Questioned Costs N/A Context N/A Identification as a Repeat Finding Finding 2023-001 Recommendation Annual reporting packages should be submitted to the Federal Audit Clearinghouse no later than March 31st of the subsequent year. Auditor Noncompliance Code: Section 207/223(f) Mortgage Insurance Finding Resolution Status: Resolved - Reviewed the Federal Audit Clearinghouse website, the annual report package was submitted and approved on June 10, 2024. Views of Responsible Officials MEDS Apartments agrees with the finding and the auditor's recommendation have been adopted. The Corporation has implemented procedures to ensure the timely completion and submission of the annual reporting package.
Federal Award Findings and Questioned Costs Department of Housing and Urban Development Finding No. 2024-001; Section 207/223(f) Mortgage Insurance, Assistance Listing 14.134 Criteria Uniform Guidance and Federal Audit Clearinghouse requirements require that non-federal entities transmit their annual reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit period. Condition The annual reporting package for the year ended June 30, 2023 has not been submitted to the Federal Audit Clearinghouse within the required time frame. Cause Procedures in place were not adequate to ensure the timely submission of the reporting package. Effect or Potential Effect Noncompliance with Uniform Guidance and Federal Audit Clearinghouse requirements. Questioned Costs N/A Context N/A Identification as a Repeat Finding Finding 2023-001 Recommendation Annual reporting packages should be submitted to the Federal Audit Clearinghouse no later than March 31st of the subsequent year. Auditor Noncompliance Code: Section 207/223(f) Mortgage Insurance Finding Resolution Status: Resolved - Reviewed the Federal Audit Clearinghouse website, the annual report package was submitted and approved on June 10, 2024. Views of Responsible Officials MEDS Apartments agrees with the finding and the auditor's recommendation have been adopted. The Corporation has implemented procedures to ensure the timely completion and submission of the annual reporting package.