FAC Explorer

Audit 34511

FY End
2022-08-31
Total Expended
$1.12M
Findings
2
Programs
2
Organization: Campton Methodist Housing Ii, Inc. (KY)
Year: 2022 Accepted: 2022-12-12
Auditor: Comer Nowling and Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
36238 2022-001 - - P
612680 2022-001 - - P

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $874,505 Yes 1
14.195 Section 8 Housing Assistance Payments Program $243,224 - 0

Contacts

Name Title Type
DJ8ELL8M3LN8 Leta Swift Auditee
2702595461 Gregory Nowling Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1 Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal grant activityof Campton Methodist Housing II, Inc. and is presented on the accrual basis of accounting. Theinformation in this schedule is presented in accordance with the requirements of Title 2 U.S.Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards. Therefore, some amounts presented inthis schedule may differ from amounts presented in, or used in the preparation of, the basicfinancial statements.Note 2 Summary of Significant Accounting PoliciesExpenditures reported on the Schedule of Expenditures of Federal Awards are reported on theaccrual basis of accounting. Such expenditures are recognized following the cost principlescontained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certaintypes of expenditures are not allowable or are limited to reimbursement. Pass-through identifyingnumbers are presented where available.Note 3 HUD Section 223(f) Mortgage NoteThe Corporation borrowed $1,164,000 of HUD Section 223(f) funds for use in various housingprojects. The note bears interest at a rate of 5.625% interest. As of August 31, 2022, the notebalance totaled $874,505.Note 4 Indirect Cost RateCampton Methodist Housing II, Inc. has not elected to use the 10% de minimis indirect cost rateas allowed under the Uniform Guidance. 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 EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 874505.

Finding Details

Finding 2022-001
S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program - Section 223(f) Mortgage Note 14.155 S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Resolved S3800-017 Information on Universe Population Size- N/A S3800-018 Sample Size Information - N/A S3800-019 Identification of Repeat Finding and Finding Reference Number - N/A S3800-020 Criteria ? In accordance with the regulatory agreement, the Corporation is required to maintain a segregated tenant security deposit account that, at all times, remains at least equal to or greater than the tenant security deposit liability account. S3800-030 Statement of Condition ? The Corporation?s tenant security deposit account is underfunded by $227 during the year ended August 31, 2022. S3800-032 Cause ? Unknown. S3800-033 Effect or Potential Effect ? The Corporation is in violation of its Regulatory Agreement entered between the Corporation and HUD. S3800-035 Auditor Non-Compliance Code ? M S3800-040 Questioned Costs ? $227 S3800-045 Reporting Views of Responsible Officials ? The Corporation did not maintain a segregated tenant security deposit account that, at all times, remains at least equal to or greater than the tenant security deposit liability account. S3800-050 Context ? The Corporation?s tenant security deposit account is under-funded by $227 during the year ended August 31, 2022. S3800-080 Recommendation ? Management should immediately fully fund the tenant security deposit account to its required amount. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management should immediately fully fund the tenant security deposit account to its required amount. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? October 21, 2022 S3800-150 Response ? Management deposited $250 into the tenant security deposit account on October 21, 2022.
Finding 2022-001
S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program - Section 223(f) Mortgage Note 14.155 S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Resolved S3800-017 Information on Universe Population Size- N/A S3800-018 Sample Size Information - N/A S3800-019 Identification of Repeat Finding and Finding Reference Number - N/A S3800-020 Criteria ? In accordance with the regulatory agreement, the Corporation is required to maintain a segregated tenant security deposit account that, at all times, remains at least equal to or greater than the tenant security deposit liability account. S3800-030 Statement of Condition ? The Corporation?s tenant security deposit account is underfunded by $227 during the year ended August 31, 2022. S3800-032 Cause ? Unknown. S3800-033 Effect or Potential Effect ? The Corporation is in violation of its Regulatory Agreement entered between the Corporation and HUD. S3800-035 Auditor Non-Compliance Code ? M S3800-040 Questioned Costs ? $227 S3800-045 Reporting Views of Responsible Officials ? The Corporation did not maintain a segregated tenant security deposit account that, at all times, remains at least equal to or greater than the tenant security deposit liability account. S3800-050 Context ? The Corporation?s tenant security deposit account is under-funded by $227 during the year ended August 31, 2022. S3800-080 Recommendation ? Management should immediately fully fund the tenant security deposit account to its required amount. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management should immediately fully fund the tenant security deposit account to its required amount. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? October 21, 2022 S3800-150 Response ? Management deposited $250 into the tenant security deposit account on October 21, 2022.