FAC Explorer

Audit 324698

FY End
2023-12-31
Total Expended
$1.29M
Findings
4
Programs
2
Organization: Big Five Ada Housing, Inc. (OK)
Year: 2023 Accepted: 2024-10-15
Auditor: John Flusche CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
502675 2023-001 Significant Deficiency - P
502676 2023-002 Significant Deficiency - P
1079117 2023-001 Significant Deficiency - P
1079118 2023-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.25M Yes 2
14.195 Section 8 Housing Assistance Payments Program $38,960 - 0

Contacts

Name Title Type
UL96BFCEJFN3 Westchester Realty & Management LLC Auditee
4052753855 John Flusche Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year ended December 31, 2023 NOTE A- BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal awards includes the federal activity of BIG 5 ADA HOUSING, INC., HUD Project No. 117-HD029, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the uniform guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the presentation of, the basic financial statements. NOTE B- EXPENDITURES Total federal awards expended include current year accrued Section 8 Project Rental Assistance Contract and Section 811 Capital Advance at inception of the Project. No payments of principal or interest are due under the capital advance as long as the project is made available to low-income persons with disabilities. In addition, after 40 years the mortgage is considered paid in full. De Minimis Rate Used: N Rate Explanation: NOTE C – INDIRECT COST The Project has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Title and CFDA Number of Federal Program: Section 811 Capital Advance CFDA # 14.181 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: The Project is not permitted to withdraw funds from the Replacement Reserve Account without the prior authorization from their HUD representative. Statement of Condition: The Project’s manager withdrew funds that were not approved by HUD using the HUD-9250 Funds Authorization from the Replacement Reserve worksheet. Cause: The Project’s management did not have the funds available to pay contractors for work performed on the property. Management did not submit Form 9250 requesting authorization to withdraw the funds. Effect or Potential Effect: The Project’s Replacement Reserve Account is underfunded by $3,958 from 2023 unauthorized withdraws. Reporting Views of Responsible Officials: The Project’s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Recommendation: The Project’s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Auditor’s Summary of the Auditee’s Comments on the Finding Recommendations: The Project’s management withdrew funds without receiving authorization to withdraw funds from the Replacement Reserve account. Funds should only be withdrawn from the Replacement Reserve account after the HUD-9250 “Funds Authorization” form is signed by the HUD Representative. Response Indicator: Agree Completion Date: 03/12/2024 Response: The Project’s management will fully redeposit the funds into the Replacement Reserve account in 2024 and will not withdraw funds in the future without proper authorization.
Finding 2023-002
Title and CFDA Number of Federal Program: Section 811 Capital Advance CFDA # 14.181 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: The Project is required to maintain a Security Deposit bank account equal to or greater than the Security Deposits Liability. Statement of Condition: The Project’s security deposit bank account is underfunded $2,028. Cause: The Project’s management withdrew funds from the security deposit account to cover operations. Effect or Potential Effect: The Project does not have the necessary funds to cover the security deposit liability. Reporting Views of Responsible Officials: The Project’s management should redeposit the funds into the security account as soon as possible, to bring the account to the correct balance. Recommendation: The Project’s management should redeposit the funds into the security account as soon as possible, to bring the account to the correct balance. Auditor’s Summary of the Auditee’s Comments on the Finding Recommendations: The Project’s management should not withdraw funds from the Security Deposit Bank account at any time for operations. Response Indicator: Agree Completion Date: 03/12/2024 Response: The Project’s management will redeposit the funds into the Security Deposit bank account as soon as possible and will not withdraw funds in the future without proper documentation.
Finding 2023-001
Title and CFDA Number of Federal Program: Section 811 Capital Advance CFDA # 14.181 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: The Project is not permitted to withdraw funds from the Replacement Reserve Account without the prior authorization from their HUD representative. Statement of Condition: The Project’s manager withdrew funds that were not approved by HUD using the HUD-9250 Funds Authorization from the Replacement Reserve worksheet. Cause: The Project’s management did not have the funds available to pay contractors for work performed on the property. Management did not submit Form 9250 requesting authorization to withdraw the funds. Effect or Potential Effect: The Project’s Replacement Reserve Account is underfunded by $3,958 from 2023 unauthorized withdraws. Reporting Views of Responsible Officials: The Project’s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Recommendation: The Project’s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Auditor’s Summary of the Auditee’s Comments on the Finding Recommendations: The Project’s management withdrew funds without receiving authorization to withdraw funds from the Replacement Reserve account. Funds should only be withdrawn from the Replacement Reserve account after the HUD-9250 “Funds Authorization” form is signed by the HUD Representative. Response Indicator: Agree Completion Date: 03/12/2024 Response: The Project’s management will fully redeposit the funds into the Replacement Reserve account in 2024 and will not withdraw funds in the future without proper authorization.
Finding 2023-002
Title and CFDA Number of Federal Program: Section 811 Capital Advance CFDA # 14.181 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: The Project is required to maintain a Security Deposit bank account equal to or greater than the Security Deposits Liability. Statement of Condition: The Project’s security deposit bank account is underfunded $2,028. Cause: The Project’s management withdrew funds from the security deposit account to cover operations. Effect or Potential Effect: The Project does not have the necessary funds to cover the security deposit liability. Reporting Views of Responsible Officials: The Project’s management should redeposit the funds into the security account as soon as possible, to bring the account to the correct balance. Recommendation: The Project’s management should redeposit the funds into the security account as soon as possible, to bring the account to the correct balance. Auditor’s Summary of the Auditee’s Comments on the Finding Recommendations: The Project’s management should not withdraw funds from the Security Deposit Bank account at any time for operations. Response Indicator: Agree Completion Date: 03/12/2024 Response: The Project’s management will redeposit the funds into the Security Deposit bank account as soon as possible and will not withdraw funds in the future without proper documentation.