FAC Explorer

Audit 52715

FY End
2022-07-31
Total Expended
$10.58M
Findings
6
Programs
2
Organization: Lancaster Village Consumer Housing Cooperative (IN)
Year: 2022 Accepted: 2023-08-24
Auditor: Comer Nowling and Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
47738 2022-001 - - P
47739 2022-002 - - P
47740 2022-002 - - P
624180 2022-001 - - P
624181 2022-002 - - P
624182 2022-002 - - P

Programs

ALN Program Spent Major Findings
14.126 Mortgage Insurance_cooperative Projects $9.17M Yes 2
14.195 Section 8 Housing Assistance Payments Program $1.41M Yes 1

Contacts

Name Title Type
KZFKPKGNVDM6 Joe Holland Auditee
3175704358 Gregory Nowling Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on theaccrual basis of accounting. Such expenditures are recognized following the cost principlescontained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certaintypes of expenditures are not allowable or are limited to reimbursement. Pass-throughidentifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE_COOPERATIVE PROJECTS (14.126) - Balances outstanding at the end of the audit period were 9167757.

Finding Details

Finding 2022-001
S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? 14.126 HUD Insured Mortgage S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Open S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? In accordance with the Regulatory Agreement between the Cooperative and HUD, the Cooperative is required to make monthly deposits into the replacement reserve in an amount approved by HUD. S3800-030 Statement of Condition ? The Cooperative did not fund the replacement reserve in the full amount required. S3800-032 Cause ? The increase in monthly deposit to the replacement reserve effective July 1, 2021 did not get implemented until September 1, 2021. S3800-033 Effect or Potential Effect ? The replacement reserve is underfunded by $252. S3800-035 Auditor Non-Compliance Code ? N S3800-040 Questioned Costs ? $252 S3800-045 Reporting Views of Responsible Officials ? The prior management company did not implement the deposit increase timely. The current management company will deposit the underfunded amount and confirm with the bank any future increases in the monthly deposit are implemented timely. S3800-050 Context ? The replacement reserve is underfunded. S3800-080 Recommendation ? The Cooperative needs to confirm the monthly replacement reserve deposits are in the amount required by HUD. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management will deposit $252 into the replacement reserve and confirm the monthly deposit reflects the most current required amount, per HUD. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? June 2023
Finding 2022-002
S3800-010 Finding Reference Number ? 2022-002 S3800-011 Title and CFDA Number of Federal Program ? 14.126 HUD Insured Mortgage and 14.195 Section 8 Housing Assistance Payments S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Open S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? HUD requires the Cooperative to file audited financial statements into the REAC system within 90 days after the fiscal year-end. S3800-030 Statement of Condition ? The audited financial statements for the year ended July 31, 2022 were not filed into the REAC system within 90 days after the year-end. S3800-032 Cause ? The Cooperative changed management companies during the year and records were not transferred within a reasonable amount of time. S3800-033 Effect or Potential Effect ? The REAC filing for the year ended July 31, 2022 is late. S3800-035 Auditor Non-Compliance Code ? Z S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Management will make sure future audited financial statements are filed into the REAC system within 90 days after the fiscal year end. S3800-050 Context ? The REAC filing for the year ended July 31, 2022 is late. S3800-080 Recommendation ? Management needs to make sure future audited financial statements are filed into the REAC system within 90 days after the fiscal year end. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management will make sure future audited financial statements are filed into the REAC system within 90 days after the fiscal year end. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? June 2023
Finding 2022-002
S3800-010 Finding Reference Number ? 2022-002 S3800-011 Title and CFDA Number of Federal Program ? 14.126 HUD Insured Mortgage and 14.195 Section 8 Housing Assistance Payments S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Open S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? HUD requires the Cooperative to file audited financial statements into the REAC system within 90 days after the fiscal year-end. S3800-030 Statement of Condition ? The audited financial statements for the year ended July 31, 2022 were not filed into the REAC system within 90 days after the year-end. S3800-032 Cause ? The Cooperative changed management companies during the year and records were not transferred within a reasonable amount of time. S3800-033 Effect or Potential Effect ? The REAC filing for the year ended July 31, 2022 is late. S3800-035 Auditor Non-Compliance Code ? Z S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Management will make sure future audited financial statements are filed into the REAC system within 90 days after the fiscal year end. S3800-050 Context ? The REAC filing for the year ended July 31, 2022 is late. S3800-080 Recommendation ? Management needs to make sure future audited financial statements are filed into the REAC system within 90 days after the fiscal year end. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management will make sure future audited financial statements are filed into the REAC system within 90 days after the fiscal year end. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? June 2023
Finding 2022-001
S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? 14.126 HUD Insured Mortgage S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Open S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? In accordance with the Regulatory Agreement between the Cooperative and HUD, the Cooperative is required to make monthly deposits into the replacement reserve in an amount approved by HUD. S3800-030 Statement of Condition ? The Cooperative did not fund the replacement reserve in the full amount required. S3800-032 Cause ? The increase in monthly deposit to the replacement reserve effective July 1, 2021 did not get implemented until September 1, 2021. S3800-033 Effect or Potential Effect ? The replacement reserve is underfunded by $252. S3800-035 Auditor Non-Compliance Code ? N S3800-040 Questioned Costs ? $252 S3800-045 Reporting Views of Responsible Officials ? The prior management company did not implement the deposit increase timely. The current management company will deposit the underfunded amount and confirm with the bank any future increases in the monthly deposit are implemented timely. S3800-050 Context ? The replacement reserve is underfunded. S3800-080 Recommendation ? The Cooperative needs to confirm the monthly replacement reserve deposits are in the amount required by HUD. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management will deposit $252 into the replacement reserve and confirm the monthly deposit reflects the most current required amount, per HUD. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? June 2023
Finding 2022-002
S3800-010 Finding Reference Number ? 2022-002 S3800-011 Title and CFDA Number of Federal Program ? 14.126 HUD Insured Mortgage and 14.195 Section 8 Housing Assistance Payments S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Open S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? HUD requires the Cooperative to file audited financial statements into the REAC system within 90 days after the fiscal year-end. S3800-030 Statement of Condition ? The audited financial statements for the year ended July 31, 2022 were not filed into the REAC system within 90 days after the year-end. S3800-032 Cause ? The Cooperative changed management companies during the year and records were not transferred within a reasonable amount of time. S3800-033 Effect or Potential Effect ? The REAC filing for the year ended July 31, 2022 is late. S3800-035 Auditor Non-Compliance Code ? Z S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Management will make sure future audited financial statements are filed into the REAC system within 90 days after the fiscal year end. S3800-050 Context ? The REAC filing for the year ended July 31, 2022 is late. S3800-080 Recommendation ? Management needs to make sure future audited financial statements are filed into the REAC system within 90 days after the fiscal year end. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management will make sure future audited financial statements are filed into the REAC system within 90 days after the fiscal year end. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? June 2023
Finding 2022-002
S3800-010 Finding Reference Number ? 2022-002 S3800-011 Title and CFDA Number of Federal Program ? 14.126 HUD Insured Mortgage and 14.195 Section 8 Housing Assistance Payments S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Open S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? HUD requires the Cooperative to file audited financial statements into the REAC system within 90 days after the fiscal year-end. S3800-030 Statement of Condition ? The audited financial statements for the year ended July 31, 2022 were not filed into the REAC system within 90 days after the year-end. S3800-032 Cause ? The Cooperative changed management companies during the year and records were not transferred within a reasonable amount of time. S3800-033 Effect or Potential Effect ? The REAC filing for the year ended July 31, 2022 is late. S3800-035 Auditor Non-Compliance Code ? Z S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Management will make sure future audited financial statements are filed into the REAC system within 90 days after the fiscal year end. S3800-050 Context ? The REAC filing for the year ended July 31, 2022 is late. S3800-080 Recommendation ? Management needs to make sure future audited financial statements are filed into the REAC system within 90 days after the fiscal year end. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management will make sure future audited financial statements are filed into the REAC system within 90 days after the fiscal year end. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? June 2023