FAC Explorer

Audit 51605

FY End
2022-06-30
Total Expended
$1.00M
Findings
4
Programs
1
Organization: Dequincy Elderly Housing Corporation (LA)
Year: 2022 Accepted: 2022-11-14
Auditor: Maddox & Associates Apc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50772 2022-001 - - LN
50773 2022-002 - Yes A
627214 2022-001 - - LN
627215 2022-002 - Yes A

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.00M Yes 2

Contacts

Name Title Type
HVWLWTLDK6E9 Lolita Ceasar Auditee
3374330219 Bryan Beale 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 949400.

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: The regulatory agreement (as amended) requires monthly deposits of $500. Statement of Condition: Required monthly deposits to the replacement reserve are deficient in the amount of $3,000. Cause: Due to damages that the Project suffered from Hurricanes Laura and Delta the Project was unable to make the required deposits from July 2021 through December 2021. Effect or Potential Effect: Replacement reserve is deficient. Auditor Non-Compliance Code: N 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 managing agent has requested that HUD retroactively suspend the required deposits for the period in question and is awaiting their response. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Context: Required monthly deposits to the replacement reserve are deficient in the amount of $3,000. Recommendation: Management should request that HUD retroactively suspend the required deposits for the period in question. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The managing agent has requested that HUD retroactively suspend the required deposits for the period in question and is awaiting their response. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Response Indicator: Agree Completion Date: September 30, 2022 Response: Management agrees with the finding. The managing agent has requested that HUD retroactively suspend the required deposits for the period in question and is awaiting their response. Management will ensure that the replacement reserve deposits are made on a timely basis in the future.
Finding 2022-002
Finding Reference Number: 2022-002 Type of Finding: FA Finding Resolution Status: Resolved 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: Prior year finding reference: 2021-001 Criteria: According to the regulatory agreement, disbursements from restricted funds may only be made after receiving written consent from HUD. Statement of Condition: HUD approval was not granted for disbursements from the restricted accounts. Cause: HUD approval was not requested. Effect or Potential Effect: The restricted account is underfunded by the amount of the withdrawal. Auditor Non-Compliance Code: A Questioned Costs: $5,051 Reporting Views of Responsible Officials: Management agrees with the finding. The funds were deposited back into the restricted account on June 24, 2022. Context: HUD approval was not granted for disbursements from the restricted accounts. Recommendation: Management should deposit the funds back into the restricted account. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The funds were deposited back into the restricted account on June 24, 2022. Response Indicator: Agree Completion Date: June 24, 2022 Response: Management agrees with the finding. The funds were deposited back into the restricted account on June 24, 2022.
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: The regulatory agreement (as amended) requires monthly deposits of $500. Statement of Condition: Required monthly deposits to the replacement reserve are deficient in the amount of $3,000. Cause: Due to damages that the Project suffered from Hurricanes Laura and Delta the Project was unable to make the required deposits from July 2021 through December 2021. Effect or Potential Effect: Replacement reserve is deficient. Auditor Non-Compliance Code: N 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 managing agent has requested that HUD retroactively suspend the required deposits for the period in question and is awaiting their response. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Context: Required monthly deposits to the replacement reserve are deficient in the amount of $3,000. Recommendation: Management should request that HUD retroactively suspend the required deposits for the period in question. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The managing agent has requested that HUD retroactively suspend the required deposits for the period in question and is awaiting their response. Management will ensure that the replacement reserve deposits are made on a timely basis in the future. Response Indicator: Agree Completion Date: September 30, 2022 Response: Management agrees with the finding. The managing agent has requested that HUD retroactively suspend the required deposits for the period in question and is awaiting their response. Management will ensure that the replacement reserve deposits are made on a timely basis in the future.
Finding 2022-002
Finding Reference Number: 2022-002 Type of Finding: FA Finding Resolution Status: Resolved 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: Prior year finding reference: 2021-001 Criteria: According to the regulatory agreement, disbursements from restricted funds may only be made after receiving written consent from HUD. Statement of Condition: HUD approval was not granted for disbursements from the restricted accounts. Cause: HUD approval was not requested. Effect or Potential Effect: The restricted account is underfunded by the amount of the withdrawal. Auditor Non-Compliance Code: A Questioned Costs: $5,051 Reporting Views of Responsible Officials: Management agrees with the finding. The funds were deposited back into the restricted account on June 24, 2022. Context: HUD approval was not granted for disbursements from the restricted accounts. Recommendation: Management should deposit the funds back into the restricted account. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The funds were deposited back into the restricted account on June 24, 2022. Response Indicator: Agree Completion Date: June 24, 2022 Response: Management agrees with the finding. The funds were deposited back into the restricted account on June 24, 2022.