FAC Explorer

Audit 335548

FY End
2023-12-31
Total Expended
$2.51M
Findings
2
Programs
2
Organization: Brockwood Community Association 054-11142 (NC)
Year: 2023 Accepted: 2025-01-02
Auditor: Bernard Robinson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
517511 2023-001 Significant Deficiency - E
1093953 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.10M Yes 1
14.195 Section 8 Housing Assistance Payments Program $409,180 - 0

Contacts

Name Title Type
N8TWKKDPZSJ3 Claudia Keene Auditee
7047711696 Erica Vernon Auditor
No contacts on file

Notes to SEFA

Title: 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. Brockwood Community Association has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Brockwood Community Association has elected not 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 award activity of Brockwood Community Association, under programs of the federal government for the year ended December 31, 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 Brockwood Community Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Brockwood Community Association.
Title: LOAN OUTSTANDING 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. Brockwood Community Association has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Brockwood Community Association has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Brockwood Community Association had the following loan balance, related to federal awards, outstanding as of December 31, 2023: Program Title: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Section 223(f)/207 - Insured Loan; Assistance Listing Number: 14.155; Amount Outstanding: $2,057,077.

Finding Details

Finding 2023-001
Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Statement of Condition: During the year ending December 31, 2023, the Organization did not obtain the required signature of a tenant on the HUD-50059 at recertification. Criteria: HUD Handbook 4530.3 REV-1 CHG-3, Chapter 7 section 3 states that signature of the head, co-head, spouse and all other adult members of the household on the HUD-50059 are required prior to submitting to the Contract Administrator or HUD. Effect: Noncompliance with HUD regulations and potential errors in rental assistance. Cause: Management oversight. Context: Of the seven tenant files tested for eligibility compliance, one of the files did not have the signature of the tenant on the HUD-50059 prior to submitting to HUD/TRACs. Questioned Costs: $0 Recommendation: We recommend that the management ensure the required household members sign the HUD-50059 prior to submitting to HUD. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding and obtained the required signatures on the HUD-50059. Management will ensure that all required signatures are obtained on all Form HUD-50059's prior to submitting to HUD going forward.
Finding 2023-001
Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Statement of Condition: During the year ending December 31, 2023, the Organization did not obtain the required signature of a tenant on the HUD-50059 at recertification. Criteria: HUD Handbook 4530.3 REV-1 CHG-3, Chapter 7 section 3 states that signature of the head, co-head, spouse and all other adult members of the household on the HUD-50059 are required prior to submitting to the Contract Administrator or HUD. Effect: Noncompliance with HUD regulations and potential errors in rental assistance. Cause: Management oversight. Context: Of the seven tenant files tested for eligibility compliance, one of the files did not have the signature of the tenant on the HUD-50059 prior to submitting to HUD/TRACs. Questioned Costs: $0 Recommendation: We recommend that the management ensure the required household members sign the HUD-50059 prior to submitting to HUD. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding and obtained the required signatures on the HUD-50059. Management will ensure that all required signatures are obtained on all Form HUD-50059's prior to submitting to HUD going forward.