FAC Explorer

Audit 410874

FY End
2025-12-31
Total Expended
$1.08M
Findings
2
Programs
2
Organization: Mermentau Elderly Housing Corporation Dba Riverbend Apartments (FL)
Year: 2025 Accepted: 2026-09-11
Auditor: BELLOWS ASSOCIATES P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1229678 2025-001 Material Weakness Yes N
1229679 2025-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY - CAPITAL ADVANCE $1.02M Yes 1
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY - PROJECT RENTAL ASSISTANCE CONTRACT (PRAC) $60,218 Yes 1

Contacts

Name Title Type
XVQCYSB66BZ5 Irene Phillips Auditee
9548359200 Jennifer R Koffman Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal award activity of Mermentau Elderly Housing Corporation, HUD Project No. 064-EE039, 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 Mermentau Elderly Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Mermentau Elderly Housing Corporation.
Mermentau Elderly Housing Corporation has received a HUD capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Mermentau Elderly Housing Corporation received no additional loans during the year. The balance of the capital advance outstanding as of December 31, 2025 was $1,019,600.

Finding Details

Finding 2025-001
FINDING No. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: HUD required cash accounts. Sample Size Information: Escrow account. Identification of Repeat Finding and Finding Reference Number: Yes, 2024-001. Criteria: As required by the regulatory agreement, the Project is required to pay, when due, all taxes, assessments, and other charges. Statement of Condition: The Project is deficient in funding escrow deposits in the amount of $5,562 as required by HUD. Cause: The Project did not properly fund the escrow account based on current period insurance premiums and tax rates. Effect or Potential Effect: The escrow deposits are not sufficient to meet future obligations. Auditor Non-Compliance Code: Z – Other Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should make sufficient monthly deposits to the escrow account. Response Indicator: Agree. Completion Date: 12/31/2026 Response: We are researching the underfunding and will ensure the escrow accounts are fully funded on a monthly basis. New procedures have been implemented to review the deposits each month to ensure amounts are proper.
Finding 2025-002
FINDING No. 2025-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Utility costs. Sample Size Information: Annual utility allowance analysis. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the owner to submit an analysis of utility allowances with supporting documentation, to perform an annual review of tenant utility allowances to determine their reasonableness, and to adjust utility allowances, when deemed appropriate. Statement of Condition: The reasonableness of tenant utility allowances was not assessed by management. Cause: Management did not perform an annual review of tenant utility allowances for the current year. Effect or Potential Effect: Depending on the results of the analysis, the tenants could be receiving the incorrect utility allowance. Auditor Non-Compliance Code: R – Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement procedures to comply with all applicable HUD regulations and ensure the annual utility allowance analysis is performed with supporting documentation retained. Response Indicator: Agree. Completion Date: 12/31/2026 Response: Staff training has been provided to ensure that annual reviews of the tenant utility allowances are performed.