FAC Explorer

Audit 41231

FY End
2022-12-31
Total Expended
$2.33M
Findings
4
Programs
2
Organization: Capitol Commons (LA)
Year: 2022 Accepted: 2023-09-24
Auditor: Wharton CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
51299 2022-001 Significant Deficiency Yes N
51300 2022-002 Significant Deficiency - N
627741 2022-001 Significant Deficiency Yes N
627742 2022-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $2.10M Yes 2
14.195 Section 8 Housing Assistance Payments Program $224,924 - 0

Contacts

Name Title Type
GS94XR53H8K4 Dr. Willie Gable Auditee
5045245471 Brendel Wharton Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1 Summary of Significant Accounting PoliciesBasis of Presentation - This schedule includes the activity of NBC Housing, Inc. Twenty-Four, CapitolCommons and is presented on the accrual basis of accounting. The information in this schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance).Indirect Cost Rate Capitol Commons did not use the de minimis cost rate.Loan/Loan Guarantee Outstanding Balance - Supportive Housing for Persons with Disabilities CapitalAdvance - The balance outstanding at the end of the audit period was $2,100,800. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 2100800.

Finding Details

Finding 2022-001
2022-1 Excess Residual Receipts Condition: The Project did not prepare a HUD 9250 to remit excess residual receipts, nor did it mail a check or transmit a wire of those funds. Criteria: According to the Consolidated Appropriations Act, 2017, owners subject to a Section 202 or 811 Project Rental Assistance Contract (PRAC) are required to remit any excess balance in a Residual Receipts account, greater than $250 per unit, to HUD?s Accounting Center upon termination or renewal of the PRAC contract. Effect: Residual receipts balance is $598,546 as of December 31, 2022. The allowable balance is $10,000 ($250 X 40 units), resulting in excess residual receipts. Recommendation: I recommend the Property prepare the HUD 9250 requesting to remit excess funds to HUD.
Finding 2022-002
2022-2 No Bids Provided Condition: Management failed to provide bids for procured services that exceeded $10,000 or more. Criteria: According to the HUD Management Agent Handbook 4381.5 Section 6.5 Contracting Guidelines when an owner/agent is contracting for goods or services involving project income, an agent is expected to solicit written cost estimates from at least three contractors for any contract, ongoing supply or service which is expected to exceed $10,000 per year. Cause: Management decided to utilize the contractor referred by the insurance company without regard to the HUD Management Agent Handbook guidelines. Effect: The Project procured services that did not comply with HUD regulations. Recommendation: I recommend management comply with all HUD rules and regulations regarding procurement.
Finding 2022-001
2022-1 Excess Residual Receipts Condition: The Project did not prepare a HUD 9250 to remit excess residual receipts, nor did it mail a check or transmit a wire of those funds. Criteria: According to the Consolidated Appropriations Act, 2017, owners subject to a Section 202 or 811 Project Rental Assistance Contract (PRAC) are required to remit any excess balance in a Residual Receipts account, greater than $250 per unit, to HUD?s Accounting Center upon termination or renewal of the PRAC contract. Effect: Residual receipts balance is $598,546 as of December 31, 2022. The allowable balance is $10,000 ($250 X 40 units), resulting in excess residual receipts. Recommendation: I recommend the Property prepare the HUD 9250 requesting to remit excess funds to HUD.
Finding 2022-002
2022-2 No Bids Provided Condition: Management failed to provide bids for procured services that exceeded $10,000 or more. Criteria: According to the HUD Management Agent Handbook 4381.5 Section 6.5 Contracting Guidelines when an owner/agent is contracting for goods or services involving project income, an agent is expected to solicit written cost estimates from at least three contractors for any contract, ongoing supply or service which is expected to exceed $10,000 per year. Cause: Management decided to utilize the contractor referred by the insurance company without regard to the HUD Management Agent Handbook guidelines. Effect: The Project procured services that did not comply with HUD regulations. Recommendation: I recommend management comply with all HUD rules and regulations regarding procurement.