FAC Explorer

Audit 3920

FY End
2023-04-30
Total Expended
$1.50M
Findings
2
Programs
2
Organization: Brownsburg Village, Inc. Dba Lakeview Place Apartments (IN)
Year: 2023 Accepted: 2023-11-21
Auditor: Somerset CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
2282 2023-001 - - M
578724 2023-001 - - M

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.21M Yes 1
14.195 Section 8 Housing Assistance Payments Program $287,471 - 0

Contacts

Name Title Type
CWVGECM5KK57 Trent Paino Auditee
3175131968 Scott A. Thoman Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Brownsburg Village, Inc. d/b/a Lakeview Place Apartments has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal award activity of Brownsburg Village, Inc. d/b/a Lakeview Place Apartments 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 Brownsburg Village, Inc. d/b/a Lakeview Place Apartments, it is not intended to and does not present the financial position, changes in net assets or cash flows of Brownsburg Village, Inc. d/b/a Lakeview Place Apartments.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. Brownsburg Village, Inc. d/b/a Lakeview Place Apartments has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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. Brownsburg Village, Inc. d/b/a Lakeview Place Apartments has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 3 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM 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. Brownsburg Village, Inc. d/b/a Lakeview Place Apartments has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Brownsburg Village, Inc, d/b/a Lakeview Place Apartments has received a U.S. Department of Housing and Urban Development loan under Section 223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Brownsburg Village, Inc. d/b/a Lakeview Place Apartments received no additional loans during the year. The balance of the loan outstanding at April 30, 2023, consists of: $1,161,336.

Finding Details

Finding 2023-001
Criteria: Pursuant to the Regulatory Agreement, the Company should ensure that tenant security deposit liability is fully funded at all times during the year. Statement of Condition: The tenant security deposit liability exceeded the security deposit account by $2,386 as of April 30, 2023. Cause: The Company had a cash shortfall at year end and was unable to fully fund the tenant security deposit liability, as required by the Regulatory Agreement. Effect: The Company was not in compliance with the Regulatory Agreement relative to the required funding of the tenant security deposit liability. Auditor’s Non-Compliance Code: M - Owners must ensure tenant security deposit liability is fully funded by security deposit trust cash account at all times during the year. Amount of Questioned Costs: $0 Reporting Views of Responsible Officials: The Company will make the delinquent deposit subsequent to year end. Context: This was not a sampling audit procedure. Recommendation: Make the required delinquent deposit to the security deposit trust cash account and ensure that the tenant security deposit liability is fully funded by the trust cash account at all times, as required by the Regulatory Agreement. Auditor’s Summary of Auditee’s Comments on the Findings and Recommendations: Auditee agreed with auditor’s findings. Response Indicator: Accepted Completion Date: July 17, 2023 Response: Management deposited $2,386 to the security deposit trust cash account on July 17, 2023. Contact Person: Tim Paino
Finding 2023-001
Criteria: Pursuant to the Regulatory Agreement, the Company should ensure that tenant security deposit liability is fully funded at all times during the year. Statement of Condition: The tenant security deposit liability exceeded the security deposit account by $2,386 as of April 30, 2023. Cause: The Company had a cash shortfall at year end and was unable to fully fund the tenant security deposit liability, as required by the Regulatory Agreement. Effect: The Company was not in compliance with the Regulatory Agreement relative to the required funding of the tenant security deposit liability. Auditor’s Non-Compliance Code: M - Owners must ensure tenant security deposit liability is fully funded by security deposit trust cash account at all times during the year. Amount of Questioned Costs: $0 Reporting Views of Responsible Officials: The Company will make the delinquent deposit subsequent to year end. Context: This was not a sampling audit procedure. Recommendation: Make the required delinquent deposit to the security deposit trust cash account and ensure that the tenant security deposit liability is fully funded by the trust cash account at all times, as required by the Regulatory Agreement. Auditor’s Summary of Auditee’s Comments on the Findings and Recommendations: Auditee agreed with auditor’s findings. Response Indicator: Accepted Completion Date: July 17, 2023 Response: Management deposited $2,386 to the security deposit trust cash account on July 17, 2023. Contact Person: Tim Paino