Audit 369152

FY End
2024-12-31
Total Expended
$2.18M
Findings
1
Programs
2
Organization: Delta Partners Manor II (MS)
Year: 2024 Accepted: 2025-09-30

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1156786 2024-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.07M Yes 1
14.195 Section 8 Housing Assistance Payments Program $105,709 Yes 0

Contacts

Name Title Type
NW6ZDZNA9VY7 Scott Russell Auditee
6018562362 Joey Fletcher Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Project 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 the Project, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Project.
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. The Project has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Project has received a U. S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The direct loan balance at the beginning of the year is included in the federal expenditures presented in the Schedule. The Project received no additional loans during the year. The balance of the direct loan outstanding as of June 30, 2024, consists of HUD section 202 capital advance, CFDA 14.157, balance at December 31, 2024, of $2,069,727.

Finding Details

Section 202 Capital Advance (CFDA #14.157) Type of Finding: Significant Deficiency/Noncompliance Criteria: The Regulatory Agreement requires the Project to make all required deposits to the replacement reserve account. Condition: The Project did not make all the required deposits in the current year. Cause: The Project’s controls over replacement reserve were not working properly. Effect or Potential Effect: Failure to make required deposits in noncompliance that could, at the discretion of HUD, result in the capital advance being called due, which would require the Project to reimburse HUD for the advance and pay interest. Perspective Information: The Project did not make all the required replacement reserve payments into the replacement reserve account. This is not a systemic issue that cannot be rectified. Recommendations: The Project should make the additional payment to meet the requirement and should implement a process to ensure that all required payments have been made to the replacement reserve account to ensure compliance with their Regulatory Agreement. Views of Responsible Officials: Management concurs with the finding. Management will make an additional deposits to meet requirements and implement controls to ensure that all required deposits are made.