FAC Explorer

Audit 35325

FY End
2022-12-31
Total Expended
$6.13M
Findings
4
Programs
2
Organization: Mt. Zion Housing Authority of Hammond, INC 073 11344 Dba Pleasant View (IN)
Year: 2022 Accepted: 2023-10-01
Auditor: McM CPAS & Advisors LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38579 2022-001 - - N
38580 2022-001 - - N
615021 2022-001 - - N
615022 2022-001 - - N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $4.82M Yes 1
14.195 Section 8 Housing Assistance Payments Program $1.31M Yes 1

Contacts

Name Title Type
Z7LSAE7PM9R1 Kathleen Taylor Auditee
3179211950 Rebekah Payne Auditor
No contacts on file

Notes to SEFA

Title: Department of Housing and Urban Development Loan Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Mt. Zion Housing Authority of Hammond, Inc. d/b/a Pleasant View has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of the loan outstanding at December 31, 2022 was $4,624,214.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Mt. Zion Housing Authority of Hammond, Inc. d/b/a Pleasant View has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal awards activity of Mt. Zion Housing Authority of Hammond, Inc. d/b/a Pleasant View, HUD Project No. 073-11344-REFI, under programs of the federal government for the year ended December 31, 2022. 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). Because the Schedule presents only a selected portion of the operations of Mt. Zion Housing Authority of Hammond, Inc. d/b/a Pleasant View, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Mt. Zion Housing Authority of Hammond, Inc. d/b/a Pleasant View.

Finding Details

Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Questioned Costs: $141,592 Information on Universe and Population Size: The population consists of the deposit due to the residual receipts reserve. Sample Size Information: Sampling does not apply. All deposits were tested; 100 percent of the population was tested. Noncompliance Information: During the year ended December 31, 2022, the Project did not make the required deposit to the residual receipts reserve within 90 days after year-end. Condition: The Project did not make the required deposit to the residual receipts reserve timely. Criteria: HUD regulations require the required deposit to the residual receipts reserve be made within 90 days of year-end. Cause: Management had originally intended to request approval from HUD to waive the required residual receipts deposit. Management ultimately decided not to make this request of HUD and inadvertently missed making the deposit due to turnover in the accounting department. Effect or Potential Effect: The residual receipts reserve was underfunded. Recommendations: The Project should deposit the required amount of $141,592 into the residual receipts reserve. Management Comments: Management agrees with the finding and recommendations. The required deposit in the amount of $141,592 was deposited into the residual receipts reserve on March 31, 2023. Auditor Non-compliance Code: B - Failure to make required Residual Receipts deposit. Status: Cleared
Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Questioned Costs: $141,592 Information on Universe and Population Size: The population consists of the deposit due to the residual receipts reserve. Sample Size Information: Sampling does not apply. All deposits were tested; 100 percent of the population was tested. Noncompliance Information: During the year ended December 31, 2022, the Project did not make the required deposit to the residual receipts reserve within 90 days after year-end. Condition: The Project did not make the required deposit to the residual receipts reserve timely. Criteria: HUD regulations require the required deposit to the residual receipts reserve be made within 90 days of year-end. Cause: Management had originally intended to request approval from HUD to waive the required residual receipts deposit. Management ultimately decided not to make this request of HUD and inadvertently missed making the deposit due to turnover in the accounting department. Effect or Potential Effect: The residual receipts reserve was underfunded. Recommendations: The Project should deposit the required amount of $141,592 into the residual receipts reserve. Management Comments: Management agrees with the finding and recommendations. The required deposit in the amount of $141,592 was deposited into the residual receipts reserve on March 31, 2023. Auditor Non-compliance Code: B - Failure to make required Residual Receipts deposit. Status: Cleared
Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Questioned Costs: $141,592 Information on Universe and Population Size: The population consists of the deposit due to the residual receipts reserve. Sample Size Information: Sampling does not apply. All deposits were tested; 100 percent of the population was tested. Noncompliance Information: During the year ended December 31, 2022, the Project did not make the required deposit to the residual receipts reserve within 90 days after year-end. Condition: The Project did not make the required deposit to the residual receipts reserve timely. Criteria: HUD regulations require the required deposit to the residual receipts reserve be made within 90 days of year-end. Cause: Management had originally intended to request approval from HUD to waive the required residual receipts deposit. Management ultimately decided not to make this request of HUD and inadvertently missed making the deposit due to turnover in the accounting department. Effect or Potential Effect: The residual receipts reserve was underfunded. Recommendations: The Project should deposit the required amount of $141,592 into the residual receipts reserve. Management Comments: Management agrees with the finding and recommendations. The required deposit in the amount of $141,592 was deposited into the residual receipts reserve on March 31, 2023. Auditor Non-compliance Code: B - Failure to make required Residual Receipts deposit. Status: Cleared
Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Questioned Costs: $141,592 Information on Universe and Population Size: The population consists of the deposit due to the residual receipts reserve. Sample Size Information: Sampling does not apply. All deposits were tested; 100 percent of the population was tested. Noncompliance Information: During the year ended December 31, 2022, the Project did not make the required deposit to the residual receipts reserve within 90 days after year-end. Condition: The Project did not make the required deposit to the residual receipts reserve timely. Criteria: HUD regulations require the required deposit to the residual receipts reserve be made within 90 days of year-end. Cause: Management had originally intended to request approval from HUD to waive the required residual receipts deposit. Management ultimately decided not to make this request of HUD and inadvertently missed making the deposit due to turnover in the accounting department. Effect or Potential Effect: The residual receipts reserve was underfunded. Recommendations: The Project should deposit the required amount of $141,592 into the residual receipts reserve. Management Comments: Management agrees with the finding and recommendations. The required deposit in the amount of $141,592 was deposited into the residual receipts reserve on March 31, 2023. Auditor Non-compliance Code: B - Failure to make required Residual Receipts deposit. Status: Cleared