Audit 345478

FY End
2024-12-31
Total Expended
$1.50M
Findings
8
Programs
1
Year: 2024 Accepted: 2025-03-11

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
526553 2024-001 - Yes N
526554 2024-002 - Yes C
526555 2024-001 - Yes N
526556 2024-002 - Yes C
1102995 2024-001 - Yes N
1102996 2024-002 - Yes C
1102997 2024-001 - Yes N
1102998 2024-002 - Yes C

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $84,522 Yes 2

Contacts

Name Title Type
EH3AVZBMME89 David Kimmel Auditee
3154372178 Robert Williams, CPA Auditor
No contacts on file

Notes to SEFA

Title: CAPITAL ADVANCE Accounting Policies: The information 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent that such costs are included in the Federal financial reports used as the source for the data presented. The de minimis election allows the Company to allocate 10% of indirect costs to grants with periods ending on or before September 30, 2024 and 15% of indirect costs to grants with periods after September 30, 2024. The Company does not use the de minimis election. The amount of $1,414,800 reported for Assistance Listing Number 14.157 in expenditures relate to U.S. Department of Housing and Urban Development - Supportive Housing for the Elderly - Section 202 Capital Advance Program. The ending balance of the capital advance is $1,414,800 at December 31, 2024.

Finding Details

(2024-001) Reserve for Replacements Condition - The reserve for replacements account is underfunded by $6,000 for the year ended December 31, 2024. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Company is required to deposit $3,000 in a reserve for replacements account on a monthly basis. Effect - The Company was not in compliance with the above HUD regulations. Cause - The reserve for replacements account was not adequately funded during the year ended December 31, 2022 and the underfunded amount of $6,000 has yet to be deposited. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat of finding 2023-001 from the prior year. Recommendation - We recommend that the delinquent deposit totaling $6,000 for the year ended December 31, 2024 be deposited into the reserve for replacements account as soon as possible. Management’s Reply -Finding 2024-001 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: Management will take action to deposit the underfunded amount of $6,000 into the reserve for replacements account in February 2025.
(2024-002) Residual Receipts Condition - The surplus cash for the year ended December 31, 2022 in the amount of $11,218 was not deposited into the residual receipts account during the years ended December 31, 2023 and 2024. Criteria - Non-profit owners and owners of limited distribution projects shall establish a residual receipts account and make deposits into the account within 90 days after the close of the fiscal year in accordance with compliance requirements associated with Assistance Listing Number 14,157 - Supportive Housing for the Elderly. Effect - The Company is not in compliance with the above HUD regulations. Cause - Surplus cash was not deposited into the residual receipts account. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat of finding 2023-002 from the prior year. Recommendation - We recommend that the surplus cash in the amount of $11,218 be deposited in to the residual receipts account as soon as possible. Management’s Reply - Finding 2024-002 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: Management will take action to deposit the underfunded amount of $11,218 into the residual account in February 2025.
(2024-001) Reserve for Replacements Condition - The reserve for replacements account is underfunded by $6,000 for the year ended December 31, 2024. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Company is required to deposit $3,000 in a reserve for replacements account on a monthly basis. Effect - The Company was not in compliance with the above HUD regulations. Cause - The reserve for replacements account was not adequately funded during the year ended December 31, 2022 and the underfunded amount of $6,000 has yet to be deposited. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat of finding 2023-001 from the prior year. Recommendation - We recommend that the delinquent deposit totaling $6,000 for the year ended December 31, 2024 be deposited into the reserve for replacements account as soon as possible. Management’s Reply -Finding 2024-001 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: Management will take action to deposit the underfunded amount of $6,000 into the reserve for replacements account in February 2025.
(2024-002) Residual Receipts Condition - The surplus cash for the year ended December 31, 2022 in the amount of $11,218 was not deposited into the residual receipts account during the years ended December 31, 2023 and 2024. Criteria - Non-profit owners and owners of limited distribution projects shall establish a residual receipts account and make deposits into the account within 90 days after the close of the fiscal year in accordance with compliance requirements associated with Assistance Listing Number 14,157 - Supportive Housing for the Elderly. Effect - The Company is not in compliance with the above HUD regulations. Cause - Surplus cash was not deposited into the residual receipts account. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat of finding 2023-002 from the prior year. Recommendation - We recommend that the surplus cash in the amount of $11,218 be deposited in to the residual receipts account as soon as possible. Management’s Reply - Finding 2024-002 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: Management will take action to deposit the underfunded amount of $11,218 into the residual account in February 2025.
(2024-001) Reserve for Replacements Condition - The reserve for replacements account is underfunded by $6,000 for the year ended December 31, 2024. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Company is required to deposit $3,000 in a reserve for replacements account on a monthly basis. Effect - The Company was not in compliance with the above HUD regulations. Cause - The reserve for replacements account was not adequately funded during the year ended December 31, 2022 and the underfunded amount of $6,000 has yet to be deposited. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat of finding 2023-001 from the prior year. Recommendation - We recommend that the delinquent deposit totaling $6,000 for the year ended December 31, 2024 be deposited into the reserve for replacements account as soon as possible. Management’s Reply -Finding 2024-001 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: Management will take action to deposit the underfunded amount of $6,000 into the reserve for replacements account in February 2025.
(2024-002) Residual Receipts Condition - The surplus cash for the year ended December 31, 2022 in the amount of $11,218 was not deposited into the residual receipts account during the years ended December 31, 2023 and 2024. Criteria - Non-profit owners and owners of limited distribution projects shall establish a residual receipts account and make deposits into the account within 90 days after the close of the fiscal year in accordance with compliance requirements associated with Assistance Listing Number 14,157 - Supportive Housing for the Elderly. Effect - The Company is not in compliance with the above HUD regulations. Cause - Surplus cash was not deposited into the residual receipts account. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat of finding 2023-002 from the prior year. Recommendation - We recommend that the surplus cash in the amount of $11,218 be deposited in to the residual receipts account as soon as possible. Management’s Reply - Finding 2024-002 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: Management will take action to deposit the underfunded amount of $11,218 into the residual account in February 2025.
(2024-001) Reserve for Replacements Condition - The reserve for replacements account is underfunded by $6,000 for the year ended December 31, 2024. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Company is required to deposit $3,000 in a reserve for replacements account on a monthly basis. Effect - The Company was not in compliance with the above HUD regulations. Cause - The reserve for replacements account was not adequately funded during the year ended December 31, 2022 and the underfunded amount of $6,000 has yet to be deposited. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat of finding 2023-001 from the prior year. Recommendation - We recommend that the delinquent deposit totaling $6,000 for the year ended December 31, 2024 be deposited into the reserve for replacements account as soon as possible. Management’s Reply -Finding 2024-001 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: Management will take action to deposit the underfunded amount of $6,000 into the reserve for replacements account in February 2025.
(2024-002) Residual Receipts Condition - The surplus cash for the year ended December 31, 2022 in the amount of $11,218 was not deposited into the residual receipts account during the years ended December 31, 2023 and 2024. Criteria - Non-profit owners and owners of limited distribution projects shall establish a residual receipts account and make deposits into the account within 90 days after the close of the fiscal year in accordance with compliance requirements associated with Assistance Listing Number 14,157 - Supportive Housing for the Elderly. Effect - The Company is not in compliance with the above HUD regulations. Cause - Surplus cash was not deposited into the residual receipts account. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat of finding 2023-002 from the prior year. Recommendation - We recommend that the surplus cash in the amount of $11,218 be deposited in to the residual receipts account as soon as possible. Management’s Reply - Finding 2024-002 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: Management will take action to deposit the underfunded amount of $11,218 into the residual account in February 2025.