Audit 352648

FY End
2024-03-31
Total Expended
$2.11M
Findings
2
Programs
2
Year: 2024 Accepted: 2025-04-04

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
554037 2024-001 - - N
1130479 2024-001 - - N

Contacts

Name Title Type
QT4MWYB31JD7 Kyle Lyskawa Auditee
3154241821 Maria Snyder Auditor
No contacts on file

Notes to SEFA

Title: A Accounting Policies: Note B - Summary of Significant 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Ludden Housing Development Fund Company, Inc. 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: The auditee did not use the de minimis cost rate. Note A - Basis Of Presentation: The accompanying schedule of expenditures of federal awards includes the federal award activity of Ludden Housing Development Fund Company, Inc., Project No. 014-11194, and 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 Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Ludden Housing Development Fund Company, Inc., it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Ludden Housing Development Fund Company, Inc.
Title: B Accounting Policies: Note B - Summary of Significant 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Ludden Housing Development Fund Company, Inc. 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: The auditee did not use the de minimis cost rate. Note B - Summary of Significant 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Ludden Housing Development Fund Company, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: C Accounting Policies: Note B - Summary of Significant 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Ludden Housing Development Fund Company, Inc. 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: The auditee did not use the de minimis cost rate. Note C - U.S Department of Housing and Urban Development Loan Program: Ludden Housing Development Fund Co., Inc. has refinanced a U.S. Department of Housing and Urban Development insured loan under Section 207/223(f) of the National Housing Act on September 26, 2012. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Ludden Housing Development Fund Co., Inc. received no additional loans during the year. The balance of the loan outstanding at March 31, 2024 consists of the following: ALN: 14.155; Program Name: Mortgage Insurance - Multifamily Housing Projects [Section 207/223(f)]; Outstanding Balance at March 31, 2024: $1,729,122.

Finding Details

Finding No. 2024-001: Mortgage Insurance-Multifamily Housing Projects, Section 207/223(f); ALN 14.155 a. Statement of condition: the required deposit of surplus cash of $1,592 as of March 31, 2024 to the residual receipts reserve account was not made within the required 60 days following the statement of financial position date. b. Criteria: Bishop Ludden Apartments is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the project’s fiscal year-end. c. Effect of condition: the project is not in compliance with the HUD regulatory agreement as it relates to the management of the residual receipts reserve. d. Cause of condition: Bishop Ludden Apartment’s $1,592 deposit due will be paid as soon as possible. e. Recommendation: Bishop Ludden Apartments should deposit the required funds in the future into the residual receipts reserve account within the 60-day requirement. f. Views of responsible officials and planned corrective actions: Bishop Ludden Apartments agrees with the finding and the auditor’s recommendations have been adopted.
Finding No. 2024-001: Mortgage Insurance-Multifamily Housing Projects, Section 207/223(f); ALN 14.155 a. Statement of condition: the required deposit of surplus cash of $1,592 as of March 31, 2024 to the residual receipts reserve account was not made within the required 60 days following the statement of financial position date. b. Criteria: Bishop Ludden Apartments is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the project’s fiscal year-end. c. Effect of condition: the project is not in compliance with the HUD regulatory agreement as it relates to the management of the residual receipts reserve. d. Cause of condition: Bishop Ludden Apartment’s $1,592 deposit due will be paid as soon as possible. e. Recommendation: Bishop Ludden Apartments should deposit the required funds in the future into the residual receipts reserve account within the 60-day requirement. f. Views of responsible officials and planned corrective actions: Bishop Ludden Apartments agrees with the finding and the auditor’s recommendations have been adopted.