FAC Explorer

Audit 354353

FY End
2024-12-31
Total Expended
$6.42M
Findings
2
Programs
1
Organization: Andrew Kim House, Inc. (MD)
Year: 2024 Accepted: 2025-04-23
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555715 2024-001 Significant Deficiency - N
1132157 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $6.42M Yes 1

Contacts

Name Title Type
URNHCBT3NNV7 Sarah O'Rielly Auditee
3014936000 Russell Phillips Auditor
No contacts on file

Notes to SEFA

Title: U.S. Department of Housing and Urban Development Capital Advance program Accounting Policies: The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of Andrew Kim House, Inc., HUD Project No.: 000-EE052-WAH, 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 Andrew Kim House, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Andrew Kim House, Inc. For the year ended December 31, 2024, no awards were passed through to subrecipients. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Andrew Kim House, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The balance shown on the Schedule of expenditures of federal awards relating to the capital advance consists of $5,643,700 expended in prior years. Section 202 capital advances need not be repaid as long as the owner continues to make the housing available to the low-income elderly for at least 40 years.

Finding Details

Finding 2024-001
Criteria Residual receipts reserve deposits should be made within 90 days of year end in accordance with the HUD regulatory agreement. Condition During the year ended December 31, 2024, management did not make the required residual receipts reserve deposit in the amount of $253,054 within 90 days of year end, as required by HUD. The residual receipts amount of $153,054 was deposited on April 22, 2024. Subsequent to year-end, the residual receipts amount of $100,000 was deposited on February 5, 2025. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect Andrew Kim is not in compliance with the requirements of the regulatory agreement. Questioned Costs: None Context Isolated instance which was not part of a statistical sample. Identification as a Repeat Finding Not a repeat finding. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits Finding Resolution Status: Resolved Views of Responsible Officials Management agrees that prior management agent did not deposit full amount of residual receipts within the prescribed time frame. Current management will follow HUD guidelines that require deposit within 90 days of year end.
Finding 2024-001
Criteria Residual receipts reserve deposits should be made within 90 days of year end in accordance with the HUD regulatory agreement. Condition During the year ended December 31, 2024, management did not make the required residual receipts reserve deposit in the amount of $253,054 within 90 days of year end, as required by HUD. The residual receipts amount of $153,054 was deposited on April 22, 2024. Subsequent to year-end, the residual receipts amount of $100,000 was deposited on February 5, 2025. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect Andrew Kim is not in compliance with the requirements of the regulatory agreement. Questioned Costs: None Context Isolated instance which was not part of a statistical sample. Identification as a Repeat Finding Not a repeat finding. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits Finding Resolution Status: Resolved Views of Responsible Officials Management agrees that prior management agent did not deposit full amount of residual receipts within the prescribed time frame. Current management will follow HUD guidelines that require deposit within 90 days of year end.