FAC Explorer

Audit 331885

FY End
2023-12-31
Total Expended
$1.33M
Findings
6
Programs
3
Organization: Ministerial Alliance Retirement Center 042-Eh127 (OH)
Year: 2023 Accepted: 2024-12-11
Auditor: Clark Schaefer Hackett & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
513866 2023-001 Material Weakness - A
513867 2023-002 Material Weakness - A
513868 2023-003 Material Weakness - A
1090308 2023-001 Material Weakness - A
1090309 2023-002 Material Weakness - A
1090310 2023-003 Material Weakness - A

Programs

ALN Program Spent Major Findings
14.195 Section 8 Housing Assistance Payments Program $675,856 - 0
14.157 Supportive Housing for the Elderly $622,755 Yes 3
14.191 Multifamily Housing Service Coordinators $31,132 - 0

Contacts

Name Title Type
E31TLJN3BAQ8 Eric Benny Auditee
2165201250 Devesh Kamal Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Family Health Services of Darke County, Inc. and Subsidiary under programs of the federal government for the year ended March 31, 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 Family Health Services of Darke County, Inc. and Subsidiary, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Family Health Services of Darke County, Inc. and Subsidiary. Significant Accounting Policies: (1) 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. (2) Family Health Services of Darke County, Inc. and Subsidiary has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. (3) There were no awards passed through to subrecipients. (4) Pass-through identifying numbers were not available. De Minimis Rate Used: N Rate Explanation: Ministerial Alliance Retirement Center has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The outstanding balance of loan and loan guarantee programs at December 31, 2023 with continuing compliance requirements which are reported as federal expenditures on the accompanying schedule of expenditures of federal awards was $350,728.

Finding Details

Finding 2023-001
Criteria: Project funds must be used for the operation of the project, including required insurance coverage, and to make required deposits to replacement reserve and residual receipts accounts (24 CFR section 891.400(e)). Condition: During 2023, the management company used operating and mortgage escrow funds in the amount of $283,467 for purposes unrelated to the Project. The management company returned $130,000 to the operating cash account during the year. Remaining $144,135 is included in accounts receivable, other and $9,332 is included in prepaid expenses as of December 31, 2023. Questioned Costs: $283,467 Cause: Management company’s oversight of Project funds did not ensure compliance with requirements related to the use of Project funds. Effect: The unauthorized use of Project funds by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement regarding use of project funds. Recommendation: Management should enhance its internal controls to ensure Project funds are only used for Project activities and expenses necessary for the ongoing operation and maintenance of the Project.
Finding 2023-002
Criteria: All disbursements from the replacement reserve account must be approved by HUD (24 CFR section 891.405). Condition: During 2023, the management company without approval from HUD withdrew $186,005 from the replacement reserve account. Funds were used by the management company for purposes unrelated to the Project. Remaining $186,005 is included in accounts receivable, other. Questioned Costs: $186,005 Cause: Management company failed to comply with the replacement reserve disbursement requirement. Effect: The unauthorized withdrawal of funds from the replacement reserve account by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with replacement reserve account.
Finding 2023-003
Criteria: All disbursements from the residual receipts account must be approved by HUD (24 CFR section 891.400(e)). Condition: During 2023, the management company without approval from HUD withdrew $474,005 from the residual receipts account. Funds were used by the management company for purposes unrelated to the Project. Remaining $474,005 is included in accounts receivable, other. Questioned Costs: $474,005 Cause: Management company failed to comply with the residual receipts disbursement requirement. Effect: The unauthorized withdrawal of funds from the residual receipts account by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with residual receipts account.
Finding 2023-001
Criteria: Project funds must be used for the operation of the project, including required insurance coverage, and to make required deposits to replacement reserve and residual receipts accounts (24 CFR section 891.400(e)). Condition: During 2023, the management company used operating and mortgage escrow funds in the amount of $283,467 for purposes unrelated to the Project. The management company returned $130,000 to the operating cash account during the year. Remaining $144,135 is included in accounts receivable, other and $9,332 is included in prepaid expenses as of December 31, 2023. Questioned Costs: $283,467 Cause: Management company’s oversight of Project funds did not ensure compliance with requirements related to the use of Project funds. Effect: The unauthorized use of Project funds by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement regarding use of project funds. Recommendation: Management should enhance its internal controls to ensure Project funds are only used for Project activities and expenses necessary for the ongoing operation and maintenance of the Project.
Finding 2023-002
Criteria: All disbursements from the replacement reserve account must be approved by HUD (24 CFR section 891.405). Condition: During 2023, the management company without approval from HUD withdrew $186,005 from the replacement reserve account. Funds were used by the management company for purposes unrelated to the Project. Remaining $186,005 is included in accounts receivable, other. Questioned Costs: $186,005 Cause: Management company failed to comply with the replacement reserve disbursement requirement. Effect: The unauthorized withdrawal of funds from the replacement reserve account by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with replacement reserve account.
Finding 2023-003
Criteria: All disbursements from the residual receipts account must be approved by HUD (24 CFR section 891.400(e)). Condition: During 2023, the management company without approval from HUD withdrew $474,005 from the residual receipts account. Funds were used by the management company for purposes unrelated to the Project. Remaining $474,005 is included in accounts receivable, other. Questioned Costs: $474,005 Cause: Management company failed to comply with the residual receipts disbursement requirement. Effect: The unauthorized withdrawal of funds from the residual receipts account by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with residual receipts account.