FAC Explorer

Audit 362385

FY End
2024-11-14
Total Expended
$4.99M
Findings
10
Programs
2
Organization: Central Manor Apartments, Inc. (FL)
Year: 2024 Accepted: 2025-07-16
Auditor: Bolerjack Halsema Bowling & White PA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
571470 2024-001 - - N
571471 2024-002 - - A
571472 2024-003 - - N
571473 2024-004 - - N
571474 2024-005 - - N
1147912 2024-001 - - N
1147913 2024-002 - - A
1147914 2024-003 - - N
1147915 2024-004 - - N
1147916 2024-005 - - N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.58M Yes 5
14.195 Project-Based Rental Assistance (pbra) $1.41M Yes 0

Contacts

Name Title Type
EYG3MEKB6JV3 Rex Snyder Auditee
2059331020 Eva Bowling Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – BASIS OF PRESENTATION 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Central Manor Apartments, Inc., (FHA/Contract No. 067-11125) 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 minimum cost rate. The accompanying schedule of expenditures of federal awards includes the federal award activity of Central Manor Apartments, Inc., (FHA/Contract No. 067-11125) 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, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Central Manor Apartments, Inc., (FHA/Contract No. 067-11125), it is not intended to and does not present the financial position, changes in net assets, or cash flows of Central Manor Apartments, Inc., (FHA/Contract No. 067-11125).
Title: NOTE C – U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT INSURED LOAN 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Central Manor Apartments, Inc., (FHA/Contract No. 067-11125) 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 minimum cost rate. Central Manor Apartments, Inc., (FHA/Contract No. 067-11125) has received a U.S. Department of Housing and Urban Development insured loan under Section 223(f) of the National Housing Act. The loan balance outstanding at the end of the year is included in the federal expenditures presented in the Schedule. Central Manor Apartments, Inc., (FHA/Contract No. 067-11125) received no additional loans during the year. The balance of the loan outstanding at November 14, 2024 consists of: Federal Assistance Listing Number: 14.155; Program Name: Section 223(f) Loan; Outstanding Balance at December 31, 2024: $3,582,356.

Finding Details

Finding 2024-001
Finding 2024-001: Unauthorized Reserves Withdrawal: Condition: A withdrawal was made from a reserve for replacements account without proper authorization from HUD. Criteria: Withdrawals from the reserve for replacements account must be properly authorized by HUD. Effect: Potential noncompliance with HUD agreement provisions. Cause: A portion of the reserve for replacements balance was held in a certificate of deposit. In March 2024, the certificate of deposit matured and the funds were deposited into a money market account. A check for legal fees was written from this account. Recommendation: The Project needs to determine if these funds must be submitted to the new owner. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. Questioned costs: $12,913
Finding 2024-002
Finding 2024-002: Unallowed Expenditures: Condition: Expenditures were made for costs which were not Project-related operating expenses. Criteria: Project funds may be used only for expenses that are reasonable and necessary to the operation of the Project as provided for in the Regulatory Agreement between HUD and the Project owner. Effect: Potential noncompliance with HUD agreement provisions. Cause: Legal expenses related to the sale of the Project by the Board were paid with Project funds. Recommendation: Consult with HUD to determine the corrective action. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. Questioned costs: $25,825
Finding 2024-003
Finding 2024-003: Required Reserves Deposit Shortage: Condition: There was a shortage in the total required deposits into the replacements reserve account. Criteria: Deposits are required to be made in accordance with the required deposit schedule provided by HUD. Effect: Potential noncompliance with HUD agreement provisions. Cause: Monthly deposits were not increased when the required monthly deposit amount was changed effective July 1, 2024. Recommendation: The Project needs to determine if these funds must be submitted to the new owner. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. Questioned costs: $788
Finding 2024-004
Finding 2024-004: Uninsured Banking Account Balance: Condition: At November 14, 2024, the Project had deposits which exceeded the Federal Deposit Insurance Corporation’s (FDIC) coverage. Criteria: Certain provisions of the HUD agreement. Effect: Potential noncompliance with HUD agreement provisions. Cause: Certain financial institution’s banking accounts exceeded the Federal Deposit Insurance Corporation’s (FDIC) coverage. Recommendation: The Project needs to monitor its banking account balances to ensure compliance. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. Questioned costs: $27,000
Finding 2024-005
Finding 2024-005: Residual Receipts Deposit: Condition: At November 14, 2024, the Project had a calculated annual surplus which has not been deposited into the residual receipts account. Criteria: The calculated annual surplus is required to be deposited into the residual receipts account. Effect: Potential noncompliance with HUD agreement provisions. Cause: A deposit into the residual receipts account has not been made. Recommendation: The Project needs to determine if these funds must be submitted to the new owner. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. Questioned costs: $54,839
Finding 2024-001
Finding 2024-001: Unauthorized Reserves Withdrawal: Condition: A withdrawal was made from a reserve for replacements account without proper authorization from HUD. Criteria: Withdrawals from the reserve for replacements account must be properly authorized by HUD. Effect: Potential noncompliance with HUD agreement provisions. Cause: A portion of the reserve for replacements balance was held in a certificate of deposit. In March 2024, the certificate of deposit matured and the funds were deposited into a money market account. A check for legal fees was written from this account. Recommendation: The Project needs to determine if these funds must be submitted to the new owner. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. Questioned costs: $12,913
Finding 2024-002
Finding 2024-002: Unallowed Expenditures: Condition: Expenditures were made for costs which were not Project-related operating expenses. Criteria: Project funds may be used only for expenses that are reasonable and necessary to the operation of the Project as provided for in the Regulatory Agreement between HUD and the Project owner. Effect: Potential noncompliance with HUD agreement provisions. Cause: Legal expenses related to the sale of the Project by the Board were paid with Project funds. Recommendation: Consult with HUD to determine the corrective action. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. Questioned costs: $25,825
Finding 2024-003
Finding 2024-003: Required Reserves Deposit Shortage: Condition: There was a shortage in the total required deposits into the replacements reserve account. Criteria: Deposits are required to be made in accordance with the required deposit schedule provided by HUD. Effect: Potential noncompliance with HUD agreement provisions. Cause: Monthly deposits were not increased when the required monthly deposit amount was changed effective July 1, 2024. Recommendation: The Project needs to determine if these funds must be submitted to the new owner. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. Questioned costs: $788
Finding 2024-004
Finding 2024-004: Uninsured Banking Account Balance: Condition: At November 14, 2024, the Project had deposits which exceeded the Federal Deposit Insurance Corporation’s (FDIC) coverage. Criteria: Certain provisions of the HUD agreement. Effect: Potential noncompliance with HUD agreement provisions. Cause: Certain financial institution’s banking accounts exceeded the Federal Deposit Insurance Corporation’s (FDIC) coverage. Recommendation: The Project needs to monitor its banking account balances to ensure compliance. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. Questioned costs: $27,000
Finding 2024-005
Finding 2024-005: Residual Receipts Deposit: Condition: At November 14, 2024, the Project had a calculated annual surplus which has not been deposited into the residual receipts account. Criteria: The calculated annual surplus is required to be deposited into the residual receipts account. Effect: Potential noncompliance with HUD agreement provisions. Cause: A deposit into the residual receipts account has not been made. Recommendation: The Project needs to determine if these funds must be submitted to the new owner. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. Questioned costs: $54,839