Audit 49987

FY End

2022-07-31

Total Expended

$885,652

Findings

2

Programs

3

Organization: Enon Toland Apartments (PA)

Year: 2022 Accepted: 2023-02-17

Auditor: Kmwcpa LLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
50018	2022-001	-	Yes	P
626460	2022-001	-	Yes	P

ALN	Program	Spent	Major	Findings
14.155	Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects	$491,305	-	0
14.871	Section 8 Housing Choice Vouchers	$372,530	Yes	1
14.157	Supportive Housing for the Elderly	$21,817	-	0

Contacts

Name	Title	Type
JRX9LB12FQ69	G. Anthony Moore	Auditee
2158439823	Kimberly M. Wolford, CPA	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A-BASIS OF PRESENTATION The above schedule of expenditures of federal awards includes the federal award activity of Enon-Toland Apartments, FHA Project No. 034-44808, 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 of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of July 31, 2022, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Enon-Toland Apartments.NOTE B-SUMMARY OF SIGNIFICANT 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. Enon-Toland Apartments has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 491305.

Title: NOTE C-U.S. DEPARTMENT OF HOUSING AND URBAN DEVLEOPMENT LOAN PROGRAM Accounting Policies: NOTE A-BASIS OF PRESENTATION The above schedule of expenditures of federal awards includes the federal award activity of Enon-Toland Apartments, FHA Project No. 034-44808, 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 of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of July 31, 2022, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Enon-Toland Apartments.NOTE B-SUMMARY OF SIGNIFICANT 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. Enon-Toland Apartments has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Enon-Toland Apartments has received a U.S. Department of Housing and Urban Development direct loan under a Mortgage Restructuring Note under the Multifamily Assisted Housing Reform and Affordability Program. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Enon-Toland Apartments received no additional loans during the year. The balance of the loan outstanding at July 31, 2022 consists of:CFDA NumberProgram NameOutstanding Balance at July 31, 202214.155Multifamily Assisted Housing Reform and Affordability $491,305

Finding Details

Finding 2022-001

2022-001: Tenant Security Deposits Condition: Current year testing noted that the security deposit account was still not being used and as a result the prior year findings have not been cleared. During the current year two tenants that the Project reported as having security deposits did not have them deposited into the security deposit account and one security deposit should have been refunded and was still in the account. Criteria: The Project is using tenants? security deposits for operations, not properly managing the individual interest-bearing accounts and not accounting for the money appropriately. Cause: The Project does not have the minimum deposit to cover potential damages or unpaid rent separated, and has money in the account but not properly documented in accordance with procedures as noted. Effect: Not in compliance with tenants? lease agreements as approved by HUD. Recommendation: Procedures should be in place and followed to ensure that the proper security deposit is documented, collected and deposited into the separately held interest bearing account upon move in and properly distributed upon move out. Management?s response: We concur with the findings and expect the accounting and project staff to review the list and make the necessary corrections.

Finding 2022-001

2022-001: Tenant Security Deposits Condition: Current year testing noted that the security deposit account was still not being used and as a result the prior year findings have not been cleared. During the current year two tenants that the Project reported as having security deposits did not have them deposited into the security deposit account and one security deposit should have been refunded and was still in the account. Criteria: The Project is using tenants? security deposits for operations, not properly managing the individual interest-bearing accounts and not accounting for the money appropriately. Cause: The Project does not have the minimum deposit to cover potential damages or unpaid rent separated, and has money in the account but not properly documented in accordance with procedures as noted. Effect: Not in compliance with tenants? lease agreements as approved by HUD. Recommendation: Procedures should be in place and followed to ensure that the proper security deposit is documented, collected and deposited into the separately held interest bearing account upon move in and properly distributed upon move out. Management?s response: We concur with the findings and expect the accounting and project staff to review the list and make the necessary corrections.