FAC Explorer

Audit 41372

FY End
2022-12-31
Total Expended
$760,929
Findings
2
Programs
2
Organization: True Love Manor (LA)
Year: 2022 Accepted: 2023-09-24
Auditor: Wharton CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
47600 2022-001 Material Weakness Yes N
624042 2022-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $593,156 Yes 1
14.195 Section 8 Housing Assistance Payments Program $167,773 - 0

Contacts

Name Title Type
JGC4HGHXKKR5 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. Ten, True Love Manorand is presented on the accrual basis of accounting. The information in this schedule is presented inaccordance 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 True Love Manor did not use the de minimis cost rate.Loan/Loan Guarantee Outstanding Balance - Supportive Housing for the Elderly - Mortgage Payable -The balance outstanding at the end of the audit period was $593,156. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 593156.

Finding Details

Finding 2022-001
2022?1 Reserve for Replacement Monthly Deposits Not Made Condition: Management failed to make the required monthly deposit into the reserve for replacement bank account from January 2020 through December 2022. Criteria: According to the Regulatory Agreement, ?mortgagor will establish and maintain a reserve fund for replacements in a separate account in a bank?Concurrently with the effective commencement of rental assistance payments under the Housing Assistance Payment Contract, the Mortgagor will deposit an amount?per month unless a different date or amount is approved in writing by HUD?. Cause: Per management, the Property does not have enough operating funds to make the required deposit and requested a suspension from HUD but was denied. Effect: The reserve for replacement account is underfunded by $41,472, related to deposits that were never made to this account. A memo entry reflecting the outstanding payments due to the account was made during the audit. Recommendation: I recommend management adhere to the Regulatory Agreement as it relates to required monthly deposits into the reserve for replacement account.
Finding 2022-001
2022?1 Reserve for Replacement Monthly Deposits Not Made Condition: Management failed to make the required monthly deposit into the reserve for replacement bank account from January 2020 through December 2022. Criteria: According to the Regulatory Agreement, ?mortgagor will establish and maintain a reserve fund for replacements in a separate account in a bank?Concurrently with the effective commencement of rental assistance payments under the Housing Assistance Payment Contract, the Mortgagor will deposit an amount?per month unless a different date or amount is approved in writing by HUD?. Cause: Per management, the Property does not have enough operating funds to make the required deposit and requested a suspension from HUD but was denied. Effect: The reserve for replacement account is underfunded by $41,472, related to deposits that were never made to this account. A memo entry reflecting the outstanding payments due to the account was made during the audit. Recommendation: I recommend management adhere to the Regulatory Agreement as it relates to required monthly deposits into the reserve for replacement account.