FAC Explorer

Audit 406934

FY End
2026-03-31
Total Expended
$2.45M
Findings
1
Programs
1
Organization: Magnolia Heights Housing Corporation (MO)
Year: 2026 Accepted: 2026-07-10
Auditor: FORVIS MAZARS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1223552 2026-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $102,457 Yes 0

Contacts

Name Title Type
C2RGJUGDLNH3 Nathan Mordica Auditee
4173477606 Derek Lee Auditor
No contacts on file

Notes to SEFA

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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Magnolia Heights Housing Corporation – U.S. Department of Housing and Urban Development (HUD) Project No. 084-HD051 (the “Project”) did not have a balance outstanding due to any federal loan programs included in the Project’s basic financial statements at March 31, 2026. The Project’s mortgage note with HUD through the Supportive Housing for Persons with Disabilities Program was recorded as a contribution from HUD due to the terms described in the notes to the financial statements.

Finding Details

Finding 2026-001
Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interest bearing account in a federally insured depository. During the fiscal year the project fund was not in an interest-bearing account. Questioned Costs - None Context – During the fiscal year the project fund was not included in a interest bearing account. Effect – The Organization did not properly comply with the special test and provisions requirements. Cause – The Organization’s internal controls did not properly identify the project fund was not maintained in an interest-bearing account. Identification as a repeat finding – Not a repeat finding. Recommendation – The Organization should move the project fund into an interest-bearing account. Views of Responsible Officials and Planned Corrective Actions – During the 2027 fiscal year management will move the project fund to an interest-bearing account and implement procedures to periodically review the project fund and other HUD accounts for compliance with HUD requirements. This corrective action plan will be monitored by Nathan Mordica, Controller and Michael Jones, Director of Accounting, and is anticipated to be completed by the end of fiscal year 2027, or March 31, 2027.