Audit 33606

FY End
2022-06-30
Total Expended
$1.28M
Findings
4
Programs
2
Organization: Nlh6 (NM)
Year: 2022 Accepted: 2022-12-11
Auditor: Palmer & CO PA

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
41581 2022-001 - - N
41582 2022-001 - - N
618023 2022-001 - - N
618024 2022-001 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.22M Yes 1
14.195 Section 8 Housing Assistance Payments Program $64,551 - 1

Contacts

Name Title Type
L9F3DN1MKAC1 Bobby Griffith Auditee
5053256515 Margi Palmer Auditor
No contacts on file

Notes to SEFA

Title: Note C - Insurance Coverage Accounting Policies: Note A - Basis of PresentationThe accompanying schedule of expenditures of federal awards includes both the rentassistance payments for the year ended June 30, 2022 and the outstandingcapital advance under the program at June 30, 2022, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with therequirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Because the schedule presents only a selected portion of the operationsof NLH 6, it is not intended to and does not present the financial position, changes in net assets, or cash flows of NLH 6.Note B - Summary of Significant Accounting PrinciplesExpenditures reported on the Schedule are reported on the accrual basis ofaccounting. Such expenditures are recognized following the cost principles required byTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Property liability and rent revenue loss insurance policies in effect during the year satisfy the minimum coverage requirements per the Capital Advance.

Finding Details

Finding 2022-001 ? Special Tests and Provisions ? Reserve for Replacement Federal program information: Title: Section 811 Capital Advance CFDA Number: 14.181 Resolution Status: Resolved Information on Universe Population Size: Population size is the total amount in the Reserve for Replacement account at year-end, June 30, 2022. Sample Size Information: Reserve for Replacement ending balance at June 30, 2022. Identification of Repeat Finding and Finding Reference Number: This is a new finding. Criteria: Total cash of $3,552 was required to be deposited into the Reserve for Replacement account by June 30, 2022. Statement of Condition: As of June 30, 2022, the Reserve for Replacement only had $1,480 deposited during the year. Cause: Management did not meet the annual funding requirement for the Reserve for Replacement account. Effect or Potential Effect: The project was not in compliance with the Capital Advance and current HUD regulations, the project?s Reserve for Replacement was under-funded for the current year by $2,072. Auditor Non-Compliance Code: N Questioned Cost: $2,072 Reporting Views of Responsible Officials: Management agrees with the Reserve for Replacement calculations and is aware of the current deposit required to the Reserve for Replacement. Recommendation: Management should implement internal controls to make any required deposits before the year-end deadline. Auditor?s Summary of Auditee?s Comments on the Findings and Recommendations: Management transferred $1,776 on 9/20/2022 but still owes $296 to the Reserve for Replacement account as of September 23, 2022 due to insufficient funds. This finding is therefore, unresolved. Completion Date: n/a Response: Management transferred $1,776 on 9/20/2022 bust still owes $296 to the Reserve for Replacement account as of September 23, 2022 due to insufficient funds. The rest of the funds will be transferred as soon as cash flow allows.
Finding 2022-001 ? Special Tests and Provisions ? Reserve for Replacement Federal program information: Title: Section 811 Capital Advance CFDA Number: 14.181 Resolution Status: Resolved Information on Universe Population Size: Population size is the total amount in the Reserve for Replacement account at year-end, June 30, 2022. Sample Size Information: Reserve for Replacement ending balance at June 30, 2022. Identification of Repeat Finding and Finding Reference Number: This is a new finding. Criteria: Total cash of $3,552 was required to be deposited into the Reserve for Replacement account by June 30, 2022. Statement of Condition: As of June 30, 2022, the Reserve for Replacement only had $1,480 deposited during the year. Cause: Management did not meet the annual funding requirement for the Reserve for Replacement account. Effect or Potential Effect: The project was not in compliance with the Capital Advance and current HUD regulations, the project?s Reserve for Replacement was under-funded for the current year by $2,072. Auditor Non-Compliance Code: N Questioned Cost: $2,072 Reporting Views of Responsible Officials: Management agrees with the Reserve for Replacement calculations and is aware of the current deposit required to the Reserve for Replacement. Recommendation: Management should implement internal controls to make any required deposits before the year-end deadline. Auditor?s Summary of Auditee?s Comments on the Findings and Recommendations: Management transferred $1,776 on 9/20/2022 but still owes $296 to the Reserve for Replacement account as of September 23, 2022 due to insufficient funds. This finding is therefore, unresolved. Completion Date: n/a Response: Management transferred $1,776 on 9/20/2022 bust still owes $296 to the Reserve for Replacement account as of September 23, 2022 due to insufficient funds. The rest of the funds will be transferred as soon as cash flow allows.
Finding 2022-001 ? Special Tests and Provisions ? Reserve for Replacement Federal program information: Title: Section 811 Capital Advance CFDA Number: 14.181 Resolution Status: Resolved Information on Universe Population Size: Population size is the total amount in the Reserve for Replacement account at year-end, June 30, 2022. Sample Size Information: Reserve for Replacement ending balance at June 30, 2022. Identification of Repeat Finding and Finding Reference Number: This is a new finding. Criteria: Total cash of $3,552 was required to be deposited into the Reserve for Replacement account by June 30, 2022. Statement of Condition: As of June 30, 2022, the Reserve for Replacement only had $1,480 deposited during the year. Cause: Management did not meet the annual funding requirement for the Reserve for Replacement account. Effect or Potential Effect: The project was not in compliance with the Capital Advance and current HUD regulations, the project?s Reserve for Replacement was under-funded for the current year by $2,072. Auditor Non-Compliance Code: N Questioned Cost: $2,072 Reporting Views of Responsible Officials: Management agrees with the Reserve for Replacement calculations and is aware of the current deposit required to the Reserve for Replacement. Recommendation: Management should implement internal controls to make any required deposits before the year-end deadline. Auditor?s Summary of Auditee?s Comments on the Findings and Recommendations: Management transferred $1,776 on 9/20/2022 but still owes $296 to the Reserve for Replacement account as of September 23, 2022 due to insufficient funds. This finding is therefore, unresolved. Completion Date: n/a Response: Management transferred $1,776 on 9/20/2022 bust still owes $296 to the Reserve for Replacement account as of September 23, 2022 due to insufficient funds. The rest of the funds will be transferred as soon as cash flow allows.
Finding 2022-001 ? Special Tests and Provisions ? Reserve for Replacement Federal program information: Title: Section 811 Capital Advance CFDA Number: 14.181 Resolution Status: Resolved Information on Universe Population Size: Population size is the total amount in the Reserve for Replacement account at year-end, June 30, 2022. Sample Size Information: Reserve for Replacement ending balance at June 30, 2022. Identification of Repeat Finding and Finding Reference Number: This is a new finding. Criteria: Total cash of $3,552 was required to be deposited into the Reserve for Replacement account by June 30, 2022. Statement of Condition: As of June 30, 2022, the Reserve for Replacement only had $1,480 deposited during the year. Cause: Management did not meet the annual funding requirement for the Reserve for Replacement account. Effect or Potential Effect: The project was not in compliance with the Capital Advance and current HUD regulations, the project?s Reserve for Replacement was under-funded for the current year by $2,072. Auditor Non-Compliance Code: N Questioned Cost: $2,072 Reporting Views of Responsible Officials: Management agrees with the Reserve for Replacement calculations and is aware of the current deposit required to the Reserve for Replacement. Recommendation: Management should implement internal controls to make any required deposits before the year-end deadline. Auditor?s Summary of Auditee?s Comments on the Findings and Recommendations: Management transferred $1,776 on 9/20/2022 but still owes $296 to the Reserve for Replacement account as of September 23, 2022 due to insufficient funds. This finding is therefore, unresolved. Completion Date: n/a Response: Management transferred $1,776 on 9/20/2022 bust still owes $296 to the Reserve for Replacement account as of September 23, 2022 due to insufficient funds. The rest of the funds will be transferred as soon as cash flow allows.