Audit 46805

FY End

2022-06-30

Total Expended

$7.54M

Findings

2

Programs

2

Organization: Montbello Voa Elderly Housing, Inc. (montbello Manor) (LA)

Year: 2022 Accepted: 2022-12-26

Auditor: Maddox & Associates Apc

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
48803	2022-001	-	-	LN
625245	2022-001	-	-	LN

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$6.50M	Yes	1
14.239	Home Investment Partnerships Program	$1.04M	Yes	0

Contacts

Name	Title	Type
NZ3BLHAJKH95	Vanessa Tran	Auditee
7033415000	Jeff Maddox	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances 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. The Project has not elected 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. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 6205400. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 1039781.

Finding Details

Finding 2022-001

Finding Reference Number: 2022-001 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: Disbursements from the replacement reserve must be used for the approved purpose. Statement of Condition: The Project received $18,936 in replacement reserve funds to perform boiler system repairs. The project expended $5,500 for this purpose. Subsequently, the Project received additional funds from the replacement reserve to replace the same boiler system. As a result, the difference of $13,436 should be returned to the replacement reserve. Cause: The Project elected to replace the system instead of repair, but did not return replacement reserve funds for the repair back to the replacement reserve account. Effect or Potential Effect: Replacement reserve is deficient. Auditor Non-Compliance Code: Z Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management agrees with the finding. The unexpended funds will be returned to the replacement reserve in the amount of $13,436. Context: The Project received $18,936 in replacement reserve funds to perform boiler system repairs. The project expended $5,500 for this purpose. Subsequently, the Project received additional funds from the replacement reserve to replace the same boiler system. As a result, the difference of $13,436 should be returned to the replacement reserve. Recommendation: The funds released but unexpended should be returned to the replacement reserve account. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The unexpended funds will be returned to the replacement reserve in the amount of $13,436. Response Indicator: Agree Completion Date: August 12, 2022 Response: Management agrees with the finding. The unexpended funds will be returned to the replacement reserve in the amount of $13,436.

Finding 2022-001

Finding Reference Number: 2022-001 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: Disbursements from the replacement reserve must be used for the approved purpose. Statement of Condition: The Project received $18,936 in replacement reserve funds to perform boiler system repairs. The project expended $5,500 for this purpose. Subsequently, the Project received additional funds from the replacement reserve to replace the same boiler system. As a result, the difference of $13,436 should be returned to the replacement reserve. Cause: The Project elected to replace the system instead of repair, but did not return replacement reserve funds for the repair back to the replacement reserve account. Effect or Potential Effect: Replacement reserve is deficient. Auditor Non-Compliance Code: Z Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management agrees with the finding. The unexpended funds will be returned to the replacement reserve in the amount of $13,436. Context: The Project received $18,936 in replacement reserve funds to perform boiler system repairs. The project expended $5,500 for this purpose. Subsequently, the Project received additional funds from the replacement reserve to replace the same boiler system. As a result, the difference of $13,436 should be returned to the replacement reserve. Recommendation: The funds released but unexpended should be returned to the replacement reserve account. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The unexpended funds will be returned to the replacement reserve in the amount of $13,436. Response Indicator: Agree Completion Date: August 12, 2022 Response: Management agrees with the finding. The unexpended funds will be returned to the replacement reserve in the amount of $13,436.