Audit 358354

FY End

2024-12-31

Total Expended

$1.67M

Findings

4

Programs

2

Organization: Lorna Doone Associates, LLC (UT)

Year: 2024 Accepted: 2025-06-09

Auditor: Wsrp

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
564248	2024-001	Material Weakness	-	N
564249	2024-001	Material Weakness	-	N
1140690	2024-001	Material Weakness	-	N
1140691	2024-001	Material Weakness	-	N

ALN	Program	Spent	Major	Findings
14.138	Mortgage Insurance_rental Housing for the Elderly	$846,548	Yes	1
14.195	Section 8 Housing Assistance Payments Program	$822,056	Yes	1

Contacts

Name	Title	Type
JR4BSX7RZLJ6	Mary Jane Fine	Auditee
8013646117	Tyler Curtis	Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation Accounting Policies: Balances are pulled directly from two GL accounts specifically used to account for the insured financing and the rent subsidy received on an accrual basis. Management is very experienced in these areas, key personnel have not changed in several years and the methods are unchanged from the prior year. De Minimis Rate Used: Y Rate Explanation: de minimis The accompanying schedule of expenditures of federal awards includes the federal grant activity of Lorna Doone Associates, LLC, HUD Project No. 105-94009, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Management has elected to use the 10% de Minimis indirect cost rate for certain costs.

Title: Note 2 – Loans Outstanding Accounting Policies: Balances are pulled directly from two GL accounts specifically used to account for the insured financing and the rent subsidy received on an accrual basis. Management is very experienced in these areas, key personnel have not changed in several years and the methods are unchanged from the prior year. De Minimis Rate Used: Y Rate Explanation: de minimis Lorna Doone Associates, LLC, had the following loan balances outstanding at December 31, 2024: Section 223(f) insured Loan by the Department of Housing and Urban Development in the amount of $846,548. (See Note 3 – Mortgage Payable) The loan balance outstanding is included in the federal expenditures presented in the schedule. Per Title 2 U.S. Code of Federal Awards paragraph 200.502 (Uniform Guidance), for loan guarantee programs the amount of federal awards expended based on the beginning of the period balance of loans from previous years for which the Federal government imposes continuing compliance requirements. So, the amount of federal awards expended for the loan guarantee program listed in this schedule will differ from the balance reflected on the balance sheet by the amount of principal paid during the reporting period. The outstanding loan balance at period end is $785,570.

Finding Details

Finding 2024-001

Management paid funds for a surplus cash loan with the State of Utah when there was no surplus cash available. In accordance with HUD guidelines and requirements, distributions and payments may only be made after the end of any annual or semi-annual fiscal period, and when positive surplus cash is demonstrated. Noncompliance with HUD program guidelines. Management did not follow the established policies or HUD regulations because of the timing of when they believed surplus cash was available. We recommend that management should ensure to make payments only if net positive surplus cash is calculated. Z - Other. Amount of Questioned Costs - $8,183.

Finding 2024-001

Management paid funds for a surplus cash loan with the State of Utah when there was no surplus cash available. In accordance with HUD guidelines and requirements, distributions and payments may only be made after the end of any annual or semi-annual fiscal period, and when positive surplus cash is demonstrated. Noncompliance with HUD program guidelines. Management did not follow the established policies or HUD regulations because of the timing of when they believed surplus cash was available. We recommend that management should ensure to make payments only if net positive surplus cash is calculated. Z - Other. Amount of Questioned Costs - $8,183.

Finding 2024-001

Management paid funds for a surplus cash loan with the State of Utah when there was no surplus cash available. In accordance with HUD guidelines and requirements, distributions and payments may only be made after the end of any annual or semi-annual fiscal period, and when positive surplus cash is demonstrated. Noncompliance with HUD program guidelines. Management did not follow the established policies or HUD regulations because of the timing of when they believed surplus cash was available. We recommend that management should ensure to make payments only if net positive surplus cash is calculated. Z - Other. Amount of Questioned Costs - $8,183.

Finding 2024-001

Management paid funds for a surplus cash loan with the State of Utah when there was no surplus cash available. In accordance with HUD guidelines and requirements, distributions and payments may only be made after the end of any annual or semi-annual fiscal period, and when positive surplus cash is demonstrated. Noncompliance with HUD program guidelines. Management did not follow the established policies or HUD regulations because of the timing of when they believed surplus cash was available. We recommend that management should ensure to make payments only if net positive surplus cash is calculated. Z - Other. Amount of Questioned Costs - $8,183.