FAC Explorer

Audit 324633

FY End
2023-12-31
Total Expended
$2.70M
Findings
4
Programs
3
Organization: J.h. Floyd Sunshine Village, Inc. (FL)
Year: 2023 Accepted: 2024-10-14
Auditor: Fogel Klein LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
502645 2023-001 - - N
502646 2023-002 Significant Deficiency - B
1079087 2023-001 - - N
1079088 2023-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.12M Yes 2
14.195 Project-Based Rental Assistance (pbra) $539,360 - 0
14.191 Multifamily Housing Service Coordinators $36,387 - 0

Contacts

Name Title Type
FBZAYFGMK2J1 Moshe Eichler Auditee
8453567773 Joseph Fogel 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 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: J.H. Floyd Sunshine Village, Inc. 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 (the "Schedule") includes the federal grant activity of J.H. Floyd Sunshine Village, Inc. under programs of the federal government for the period January 1, 2023 through December 20, 2023. 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 J.H. Floyd Sunshine Village, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of J.H. Floyd Sunshine Village, Inc.
Title: Note D - Federally Funded and Insured Mortgages Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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: J.H. Floyd Sunshine Village, Inc. has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. J.H. Floyd Sunshine Village, Inc. has received US Department of Housing and Urban Development insured loans pursuant to Section 207/223(f) of the National Housing Act. The mortgage balance at the beginning of the year is included in the federal expenditures presented in the Schedule. There were no additional loans received during the year. The balance of the outstanding federally funded mortgage as of December 20, 2023 is $2,058,766.

Finding Details

Finding 2023-001
Finding 2023-001: Federal Awards Major Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 207/223(f)) (CFDA# 14.155) Residual Receipts Finding Resolution Status: Resolved Questioned Costs: $31,573 Information on Universe and Population Size: Not Applicable Sample Size Information: Not Applicable Noncompliance Information: The Project did not deposit their residual receipts deposit of $31,573 from prior year surplus cash within the required deadline of 90 days after year end. Statement of Condition: The Project did not deposit their required residual receipts deposit of $31,573 within the required deadline. Criteria: Any Surplus Cash in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in a federally insured account within 90 days following the end of the fiscal year. Withdrawals from this account may be made only for project purposes and with the approval of HUD (24 CFR sections 891.400(e) and 891.600(e)). Cause: The project did not have a process in place to ensure residual receipts were deposited within 90 days. Effect or Potential Effect: The surplus cash was not deposited into the residual receipts account within 90 days. Auditor Non-Compliance Code: B - Failure to make required residual receipts deposits Recommendations: The Project should ensure that all required deposits to residual receipts are deposited within 90 days. Reporting Views of Responsible Officials: Management concurs with this finding, agrees with the auditor recommendation, and has made the required residual receipts deposit. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management concured, agreed and deposited the required residual receipts amount. Completion Date: March 28, 2024 Response: Management concurs with this finding, agrees with the auditor recommendation, and has made the required residual receipts deposit. Actions Taken or Planned on the Finding: The funds have been deposited to residual receipts. Contact Person: Moshe Eichler
Finding 2023-002
Finding 2023-002: Federal Awards Major Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 207/223(f)) (CFDA# 14.155): Significant Deficiency Allowable costs/cost principles Finding Resolution Status: Resolved Questioned Costs: $47,837 Information on Universe and Population Size: Not Applicable Sample Size Information: Not Applicable Noncompliance Information: The Project disbursed $47,837 of legal costs that were not operating expenses for the project. Statement of Condition: The Project disbursed $47,837 of legal costs that were not operating expenses for the project. Criteria: The Regulatory Agreement (HUD-92466 version 11/2002, section 13(g)) restricts withdrawal of cash of the Project to payments for reasonable expenses incident to the operation and maintenance of the project. Cause: The Project paid legal fees pertaining to the sale that were billed to the Project prior to the sale and release from the Regulatory Agreement. Effect or Potential Effect: The Project disbursed $47,837 of legal costs that were not operating expenses for the project. Auditor Non-Compliance Code: Z - Other Recommendations: The Project should ensure that expenses pertaining to the sale of the property should be paid from entity non-project accounts. Reporting Views of Responsible Officials: Management concurs with this finding and the current management agent has ensured that $47,837 was reimbursed from entity non-project funds. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management concured and has ensured that $47,837 was reimbursed from entity non-project funds. Completion Date: February 8, 2024 Response: Management concurs with this finding and the current management agent has ensured that $47,837 was reimbursed from entity non-project funds. Actions Taken or Planned on the Finding: The funds were reimbursed from entity non-project funds. Contact Person: Moshe Eichler
Finding 2023-001
Finding 2023-001: Federal Awards Major Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 207/223(f)) (CFDA# 14.155) Residual Receipts Finding Resolution Status: Resolved Questioned Costs: $31,573 Information on Universe and Population Size: Not Applicable Sample Size Information: Not Applicable Noncompliance Information: The Project did not deposit their residual receipts deposit of $31,573 from prior year surplus cash within the required deadline of 90 days after year end. Statement of Condition: The Project did not deposit their required residual receipts deposit of $31,573 within the required deadline. Criteria: Any Surplus Cash in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in a federally insured account within 90 days following the end of the fiscal year. Withdrawals from this account may be made only for project purposes and with the approval of HUD (24 CFR sections 891.400(e) and 891.600(e)). Cause: The project did not have a process in place to ensure residual receipts were deposited within 90 days. Effect or Potential Effect: The surplus cash was not deposited into the residual receipts account within 90 days. Auditor Non-Compliance Code: B - Failure to make required residual receipts deposits Recommendations: The Project should ensure that all required deposits to residual receipts are deposited within 90 days. Reporting Views of Responsible Officials: Management concurs with this finding, agrees with the auditor recommendation, and has made the required residual receipts deposit. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management concured, agreed and deposited the required residual receipts amount. Completion Date: March 28, 2024 Response: Management concurs with this finding, agrees with the auditor recommendation, and has made the required residual receipts deposit. Actions Taken or Planned on the Finding: The funds have been deposited to residual receipts. Contact Person: Moshe Eichler
Finding 2023-002
Finding 2023-002: Federal Awards Major Program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 207/223(f)) (CFDA# 14.155): Significant Deficiency Allowable costs/cost principles Finding Resolution Status: Resolved Questioned Costs: $47,837 Information on Universe and Population Size: Not Applicable Sample Size Information: Not Applicable Noncompliance Information: The Project disbursed $47,837 of legal costs that were not operating expenses for the project. Statement of Condition: The Project disbursed $47,837 of legal costs that were not operating expenses for the project. Criteria: The Regulatory Agreement (HUD-92466 version 11/2002, section 13(g)) restricts withdrawal of cash of the Project to payments for reasonable expenses incident to the operation and maintenance of the project. Cause: The Project paid legal fees pertaining to the sale that were billed to the Project prior to the sale and release from the Regulatory Agreement. Effect or Potential Effect: The Project disbursed $47,837 of legal costs that were not operating expenses for the project. Auditor Non-Compliance Code: Z - Other Recommendations: The Project should ensure that expenses pertaining to the sale of the property should be paid from entity non-project accounts. Reporting Views of Responsible Officials: Management concurs with this finding and the current management agent has ensured that $47,837 was reimbursed from entity non-project funds. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management concured and has ensured that $47,837 was reimbursed from entity non-project funds. Completion Date: February 8, 2024 Response: Management concurs with this finding and the current management agent has ensured that $47,837 was reimbursed from entity non-project funds. Actions Taken or Planned on the Finding: The funds were reimbursed from entity non-project funds. Contact Person: Moshe Eichler