Audit 47766

FY End
2022-03-31
Total Expended
$1.70M
Findings
2
Programs
2
Year: 2022 Accepted: 2022-11-15
Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
51064 2022-001 - - N
627506 2022-001 - - N

Contacts

Name Title Type
D3CKU2LJ9NA8 Kyle Lyskawa Auditee
3154241821 Bettina Lipphardt Auditor
No contacts on file

Notes to SEFA

Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT MORTGAGE INSURANCE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Cicero Housing Development Fund Company, Inc. (Sacred Heart Apartments), FHA Project No. 014-11192, 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 Sacred Heart Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sacred Heart Apartments. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Sacred Heart Apartments has received a U.S. Department of Housing and Urban Development insured loan under Section 207/223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Sacred Heart Apartments received no additional loans during the year. The balance of the loan outstanding as of March 31, 2022 consists of: See Corrective Action Plan for chart/table
Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Cicero Housing Development Fund Company, Inc. (Sacred Heart Apartments), FHA Project No. 014-11192, 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 Sacred Heart Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sacred Heart Apartments. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Sacred Heart Apartments did not pass any federal funds to subrecipients for the year ended March 31, 2022.

Finding Details

Finding 2022-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Criteria: The HUD Handbook requires owners to perform and document inspections of each unit on at least an annual basis. Condition: Unit inspections were not performed during the year. Context: We reviewed 4 tenant files for documentation of unit inspections. Cause: Sacred Heart Apartments did not ensure unit inspections continued through COVID. Effect: The tenant?s unit may not be in a decent, safe, and sanitary condition. Recommendation: We recommend that Sacred Heart Apartments resume unit inspections and ensure those inspections are properly documented in the tenant files. Views of management and planned corrective action: Sacred Heart Apartments has resumed unit inspections and will ensure those inspections are properly documented in the tenant files.
Finding 2022-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Criteria: The HUD Handbook requires owners to perform and document inspections of each unit on at least an annual basis. Condition: Unit inspections were not performed during the year. Context: We reviewed 4 tenant files for documentation of unit inspections. Cause: Sacred Heart Apartments did not ensure unit inspections continued through COVID. Effect: The tenant?s unit may not be in a decent, safe, and sanitary condition. Recommendation: We recommend that Sacred Heart Apartments resume unit inspections and ensure those inspections are properly documented in the tenant files. Views of management and planned corrective action: Sacred Heart Apartments has resumed unit inspections and will ensure those inspections are properly documented in the tenant files.