FAC Explorer

Audit 326868

FY End
2024-07-31
Total Expended
$1.71M
Findings
2
Programs
3
Organization: National Church Residences of Bolivar, Tn D/b/a Pecan Grove (OH)
Year: 2024 Accepted: 2024-10-31
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504315 2024-001 - - M
1080757 2024-001 - - M

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.42M Yes 1
14.195 Section 8 Housing Assistance Payments Program $255,430 - 0
14.191 Multifamily Housing Service Coordinators $33,069 - 0

Contacts

Name Title Type
J367SCZJNND6 Jill Kolb Auditee
6144512151 Kelly Perlman Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Corporation and is presented on the same basis of accounting as the financial statements. The information in this schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the "Uniform Guidance"). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISITING MULTIFAMILY HOUSING PROJECTS (14.155)- Balances outstanding at the end of the audit period were 1380789.

Finding Details

Finding 2024-001
Finding Type Immaterial noncompliance with major program requirements Title and Assistance Listing Number of Federal Program 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 207/223(f)) Finding Resolution Status Resolved Information on Universe and Population Size The Corporation had 8 move outs during the fiscal year. Sample Size Information A sample size of 2 move outs were tested for the year ended July 31, 2024. Identification of Repeat Finding and Finding Reference Number N/A not a repeat finding. Criteria HUD requires the Corporation to refund the security deposit to tenants within 30 days of the move out. Statement of Condition The Corporation failed to refund the security deposit to a tenant within 30 days of their move out date. Cause The Corporation failed to monitor the deposit refund requirements for the security deposits as specified by the regulatory agreement. Effect or Potential Effect The tenant did not receive their security deposit refund until 40 days after their move out. Auditor Noncompliance Code M Security Deposits Recommendation All security deposit refunds should be made within 30 days of the tenant move out. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations Management acknowledged the errors that occurred during the year ended July 31, 2024 and has taken measures to change their process of issuing refunds to reduce the likelihood of late refunds. Response Indicator Agree Completion Date April 9, 2024 Response The security deposit has been refunded and management is currently reviewing internal controls over security deposit refunds to ensure all deposits are refunded timely.
Finding 2024-001
Finding Type Immaterial noncompliance with major program requirements Title and Assistance Listing Number of Federal Program 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 207/223(f)) Finding Resolution Status Resolved Information on Universe and Population Size The Corporation had 8 move outs during the fiscal year. Sample Size Information A sample size of 2 move outs were tested for the year ended July 31, 2024. Identification of Repeat Finding and Finding Reference Number N/A not a repeat finding. Criteria HUD requires the Corporation to refund the security deposit to tenants within 30 days of the move out. Statement of Condition The Corporation failed to refund the security deposit to a tenant within 30 days of their move out date. Cause The Corporation failed to monitor the deposit refund requirements for the security deposits as specified by the regulatory agreement. Effect or Potential Effect The tenant did not receive their security deposit refund until 40 days after their move out. Auditor Noncompliance Code M Security Deposits Recommendation All security deposit refunds should be made within 30 days of the tenant move out. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations Management acknowledged the errors that occurred during the year ended July 31, 2024 and has taken measures to change their process of issuing refunds to reduce the likelihood of late refunds. Response Indicator Agree Completion Date April 9, 2024 Response The security deposit has been refunded and management is currently reviewing internal controls over security deposit refunds to ensure all deposits are refunded timely.