FAC Explorer

Audit 330246

FY End
2023-12-31
Total Expended
$3.42M
Findings
6
Programs
3
Organization: Ardmore Village Housing Corporation (OK)
Year: 2023 Accepted: 2024-11-30
Auditor: Gray Blodgett & Company PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
512468 2023-003 Material Weakness - L
512469 2023-004 Material Weakness - L
512470 2023-005 Material Weakness - B
1088910 2023-003 Material Weakness - L
1088911 2023-004 Material Weakness - L
1088912 2023-005 Material Weakness - B

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.69M Yes 3
14.195 Project-Based Rental Assistance (pbra) $682,086 - 0
14.191 Multifamily Housing Service Coordinators $41,950 - 0

Contacts

Name Title Type
M5S8F8U8CZL7 Thomas Gorman Auditee
9183332244 Ross H Roye Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of the Corporation and is presented on the accrual basis of accounting. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de mini mis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of the Corporation and is presented on the accrual basis of accounting. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of the Corporation and is presented on the accrual basis of accounting. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de mini mis 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 the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected not to use the 10-percent de mini mis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE C – U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of the Corporation and is presented on the accrual basis of accounting. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de mini mis indirect cost rate allowed under the Uniform Guidance. The Corporation receives mortgage insurance under Section 223(f) of the National Housing Act which was added by Section 311(a) of the Housing and Community Development Act of 1974. The balance of the loan outstanding at the beginning of the year is included in the schedule of expenditures of federal awards.

Finding Details

Finding 2023-003
#2023-003 – Assistance Listing Number 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, U.S. Department of Housing and Urban Development Material Weakness in Internal Control and Failure to Comply with Federal Requirements of Contracts. Criteria: The audited financial statements are required to be submitted to the PIH-REAC online system within 90 days of year end according to the Uniform Financial Reporting Standards (UFRS) for not-for-profit multifamily program participants, HUD Audit Guide 2000.04 Chapter §3.3 and the Uniform Guidance – 2 CFR §200.514(d)(1). Statement of Condition: The audited financial statements were not submitted into the PIH-REAC online system within 90 days of year end. The Corporation’s management did not engage an auditor until April 4, 2024. Cause: Corporation experienced turnover in the Executive Director and other positions near year end. This turnover caused the books not to be closed in a timely manner and the books were not closed accurately. This contributed to the late submission of the financial statements into the PIH-REAC system. Effect: Corporation was not in compliance with the regulatory agreement. Recommendation: Management should close the books after year-end in a timely manner. Management should also engage an auditor before the end of the year to ensure the submission of financial data into the PIH-REAC system within ninety (90) days following year-end. Questioned costs: None.
Finding 2023-004
#2023-004 – Assistance Listing Number 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, U.S. Department of Housing and Urban Development Material Weakness in Internal Control and Failure to Comply with Federal Requirements of Contracts. Criteria: Uniform Guidance – 2 CFR §200.512 requires “the audit be completed and the data collection form described in paragraph (b) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period.” Statement of Condition: The data collection form and audited financial statements were not submitted to the Federal Audit Clearinghouse system by the earlier of thirty (30) after the audit was complete or nine (9) months after the year end. Cause: Management’s lack of knowledge of HUD and Uniform Guidance requirements. Management did not engage the auditor until April 7, 2024. This was after the due date of the REAC submission. Auditors were not provided all requested documentation by requested dates. Auditors were not able to schedule fieldwork until after the Federal Audit Clearinghouse due date. Effect: Corporation was not in compliance with 2 CFR §200.512. Recommendation: Management should close the books after year-end in a timely manner. Management should then submit that financial data into the Federal Audit Clearinghouse system within 90 days following year-end. Questioned costs: None.
Finding 2023-005
#2023-005 – Assistance Listing Number 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, U.S. Department of Housing and Urban Development Material Weakness in Internal Control and Failure to Comply with Federal Requirements of Contracts. Criteria: The Uniform Guidance – 2 CFR §200.508(b) and 2 CFR §200.508(d) – state: “The auditee must: …(b) Prepare appropriate financial statements, including the schedule of Federal awards in accordance with §200.510…(d) Provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by this part.” Statement of Condition: Management was unable to provide written internal controls over financial statement preparation, operations and federal awards. Cause: Management’s lack of knowledge of the Code of Federal Regulations. Effect: Corporation was not in compliance with 2 CFR §200. This contributed to the general ledger being incomplete and inaccurate. Recommendation: Management should establish written internal controls that document the controls over financial statement preparation, operations and federal awards. Questioned costs: None.
Finding 2023-003
#2023-003 – Assistance Listing Number 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, U.S. Department of Housing and Urban Development Material Weakness in Internal Control and Failure to Comply with Federal Requirements of Contracts. Criteria: The audited financial statements are required to be submitted to the PIH-REAC online system within 90 days of year end according to the Uniform Financial Reporting Standards (UFRS) for not-for-profit multifamily program participants, HUD Audit Guide 2000.04 Chapter §3.3 and the Uniform Guidance – 2 CFR §200.514(d)(1). Statement of Condition: The audited financial statements were not submitted into the PIH-REAC online system within 90 days of year end. The Corporation’s management did not engage an auditor until April 4, 2024. Cause: Corporation experienced turnover in the Executive Director and other positions near year end. This turnover caused the books not to be closed in a timely manner and the books were not closed accurately. This contributed to the late submission of the financial statements into the PIH-REAC system. Effect: Corporation was not in compliance with the regulatory agreement. Recommendation: Management should close the books after year-end in a timely manner. Management should also engage an auditor before the end of the year to ensure the submission of financial data into the PIH-REAC system within ninety (90) days following year-end. Questioned costs: None.
Finding 2023-004
#2023-004 – Assistance Listing Number 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, U.S. Department of Housing and Urban Development Material Weakness in Internal Control and Failure to Comply with Federal Requirements of Contracts. Criteria: Uniform Guidance – 2 CFR §200.512 requires “the audit be completed and the data collection form described in paragraph (b) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period.” Statement of Condition: The data collection form and audited financial statements were not submitted to the Federal Audit Clearinghouse system by the earlier of thirty (30) after the audit was complete or nine (9) months after the year end. Cause: Management’s lack of knowledge of HUD and Uniform Guidance requirements. Management did not engage the auditor until April 7, 2024. This was after the due date of the REAC submission. Auditors were not provided all requested documentation by requested dates. Auditors were not able to schedule fieldwork until after the Federal Audit Clearinghouse due date. Effect: Corporation was not in compliance with 2 CFR §200.512. Recommendation: Management should close the books after year-end in a timely manner. Management should then submit that financial data into the Federal Audit Clearinghouse system within 90 days following year-end. Questioned costs: None.
Finding 2023-005
#2023-005 – Assistance Listing Number 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, U.S. Department of Housing and Urban Development Material Weakness in Internal Control and Failure to Comply with Federal Requirements of Contracts. Criteria: The Uniform Guidance – 2 CFR §200.508(b) and 2 CFR §200.508(d) – state: “The auditee must: …(b) Prepare appropriate financial statements, including the schedule of Federal awards in accordance with §200.510…(d) Provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by this part.” Statement of Condition: Management was unable to provide written internal controls over financial statement preparation, operations and federal awards. Cause: Management’s lack of knowledge of the Code of Federal Regulations. Effect: Corporation was not in compliance with 2 CFR §200. This contributed to the general ledger being incomplete and inaccurate. Recommendation: Management should establish written internal controls that document the controls over financial statement preparation, operations and federal awards. Questioned costs: None.