FAC Explorer

Audit 353626

FY End
2024-12-31
Total Expended
$1.07M
Findings
4
Programs
2
Organization: Old Middleton Road Apartments, Inc. 075-Hd082-Cmi (WI)
Year: 2024 Accepted: 2025-04-14
Auditor: Wipfli LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555084 2024-001 Significant Deficiency - N
555085 2024-001 Significant Deficiency - N
1131526 2024-001 Significant Deficiency - N
1131527 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $280,000 - 0
14.181 Supportive Housing for Persons with Disabilities $60,964 Yes 1

Contacts

Name Title Type
D8AEDCJ5FW59 Kelly Johnson Auditee
6086922716 Stephanie Cavadeas Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation 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. Pass-through entity identifying numbers are presented where available. The Project did not have any awards to subrecipients during the year. De Minimis Rate Used: N Rate Explanation: N/A The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Old Middleton Road Apartments, Inc. under programs of the federal government for the year ended December 31, 2024. 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, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of Old Middleton Road Apartments, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Old Middleton Road Apartments, Inc.
Title: Capital Advance 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. Pass-through entity identifying numbers are presented where available. The Project did not have any awards to subrecipients during the year. De Minimis Rate Used: N Rate Explanation: N/A The balance of the capital advance from the Department of Housing and Urban Development at December 31, 2024 was $730,400. The balance of the Home Investment Partnership Program loan at December 31, 2024 was $280,000.
Title: 10% De Minimis 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. Pass-through entity identifying numbers are presented where available. The Project did not have any awards to subrecipients during the year. De Minimis Rate Used: N Rate Explanation: N/A Old Middleton Road Apartments, Inc. did not elect to use the 10% de minimis cost rate.

Finding Details

Finding 2024-001
2024-001 - Special Tests and Provisions - Replacement Reserve Funding Agency: United States Department of Housing and Urban Development Title: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Questioned Costs: None How Questioned Costs Were Computed: N/A Criteria or Specific Requirement: Old Middleton Road Apartments, Inc. (the "Project") was required to establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. An amount as required by the Department of Housing and Urban Development (HUD) will be deposited monthly in the reserve fund. All disbursements from the reserve must be approved by HUD. Condition: During our audit procedures we noted that the Project’s monthly deposits for 2024 were less than the amount required by HUD. Additionally, there was a withdrawal from the replacement reserve for which the Project was not able to provide HUD approval support. Context: The Project had turnover in their residential department during 2024, which resulted in reorganization of job responsibilities. Cause: Due to the turnover, the Project failed to properly oversee and manage the activity of the replacement reserve account. Effect: Without proper oversight and management of the replacement reserve account, the Project did not ensure it was complying with requirements of the program.. Auditor's Recommendation: Wipfli recommends that the Project closely reviews the replacement reserve activity in comparison to HUD requirements to ensure that they are in compliance with the requirements. View of Responsible Official: We agree with the finding and are committed to a corrective action.
Finding 2024-001
2024-001 - Special Tests and Provisions - Replacement Reserve Funding Agency: United States Department of Housing and Urban Development Title: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Questioned Costs: None How Questioned Costs Were Computed: N/A Criteria or Specific Requirement: Old Middleton Road Apartments, Inc. (the "Project") was required to establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. An amount as required by the Department of Housing and Urban Development (HUD) will be deposited monthly in the reserve fund. All disbursements from the reserve must be approved by HUD. Condition: During our audit procedures we noted that the Project’s monthly deposits for 2024 were less than the amount required by HUD. Additionally, there was a withdrawal from the replacement reserve for which the Project was not able to provide HUD approval support. Context: The Project had turnover in their residential department during 2024, which resulted in reorganization of job responsibilities. Cause: Due to the turnover, the Project failed to properly oversee and manage the activity of the replacement reserve account. Effect: Without proper oversight and management of the replacement reserve account, the Project did not ensure it was complying with requirements of the program.. Auditor's Recommendation: Wipfli recommends that the Project closely reviews the replacement reserve activity in comparison to HUD requirements to ensure that they are in compliance with the requirements. View of Responsible Official: We agree with the finding and are committed to a corrective action.
Finding 2024-001
2024-001 - Special Tests and Provisions - Replacement Reserve Funding Agency: United States Department of Housing and Urban Development Title: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Questioned Costs: None How Questioned Costs Were Computed: N/A Criteria or Specific Requirement: Old Middleton Road Apartments, Inc. (the "Project") was required to establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. An amount as required by the Department of Housing and Urban Development (HUD) will be deposited monthly in the reserve fund. All disbursements from the reserve must be approved by HUD. Condition: During our audit procedures we noted that the Project’s monthly deposits for 2024 were less than the amount required by HUD. Additionally, there was a withdrawal from the replacement reserve for which the Project was not able to provide HUD approval support. Context: The Project had turnover in their residential department during 2024, which resulted in reorganization of job responsibilities. Cause: Due to the turnover, the Project failed to properly oversee and manage the activity of the replacement reserve account. Effect: Without proper oversight and management of the replacement reserve account, the Project did not ensure it was complying with requirements of the program.. Auditor's Recommendation: Wipfli recommends that the Project closely reviews the replacement reserve activity in comparison to HUD requirements to ensure that they are in compliance with the requirements. View of Responsible Official: We agree with the finding and are committed to a corrective action.
Finding 2024-001
2024-001 - Special Tests and Provisions - Replacement Reserve Funding Agency: United States Department of Housing and Urban Development Title: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Questioned Costs: None How Questioned Costs Were Computed: N/A Criteria or Specific Requirement: Old Middleton Road Apartments, Inc. (the "Project") was required to establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. An amount as required by the Department of Housing and Urban Development (HUD) will be deposited monthly in the reserve fund. All disbursements from the reserve must be approved by HUD. Condition: During our audit procedures we noted that the Project’s monthly deposits for 2024 were less than the amount required by HUD. Additionally, there was a withdrawal from the replacement reserve for which the Project was not able to provide HUD approval support. Context: The Project had turnover in their residential department during 2024, which resulted in reorganization of job responsibilities. Cause: Due to the turnover, the Project failed to properly oversee and manage the activity of the replacement reserve account. Effect: Without proper oversight and management of the replacement reserve account, the Project did not ensure it was complying with requirements of the program.. Auditor's Recommendation: Wipfli recommends that the Project closely reviews the replacement reserve activity in comparison to HUD requirements to ensure that they are in compliance with the requirements. View of Responsible Official: We agree with the finding and are committed to a corrective action.