FAC Explorer

Audit 52790

FY End
2022-12-31
Total Expended
$3.51M
Findings
4
Programs
2
Organization: Bethel Towers (LA)
Year: 2022 Accepted: 2023-09-24
Auditor: Wharton CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
48075 2022-002 Significant Deficiency - N
48076 2022-001 Material Weakness Yes N
624517 2022-002 Significant Deficiency - N
624518 2022-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $3.28M Yes 2
14.195 Section 8 Housing Assistance Payments Program $234,611 - 0

Contacts

Name Title Type
RUPEQ9VJ9Q91 Dr. Willie Gable Auditee
5045245471 Brendel Wharton Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1 Summary of Significant Accounting PoliciesBasis of Presentation - This schedule includes the activity of NBC Housing, Inc. Thirty-Two, BethelTowers and is presented on the accrual basis of accounting. The information in this schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance).Indirect Cost Rate Bethel Towers did not use the de minimis cost rate.Loan/Loan Guarantee Outstanding Balance - Supportive Housing for the Elderly Capital Advance -The balance outstanding at the end of the audit period was $3,278,299. 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 3278299.

Finding Details

Finding 2022-002
2022-2 HUD 9250 Instructions not followed Condition: Reserve for replacement funds were not returned to the account as required by HUD. Criteria: $21,073 was approved to be utilized by HUD from the replacement reserve account for operations. HUD also required that the $21,073 be returned to the replacement reserve account, following approval of the 2022 contract and budget. The funds were not returned to the replacement reserve account as of 12/31/2022, although both the budget and contract had been approved, April 12, 2022. Cause: The cause is undeterminable. Effect: The Project did not comply with HUD 9250 instructions. Recommendation: I recommend management comply with all HUD instructions, rules, and regulations.
Finding 2022-001
2022-1 Reserve for Replacement Deposits Not Made Timely Condition: The Project did not make the required deposit into the bank account for January 2022 until February 2022. Criteria: According to the Regulatory Agreement, ?mortgagor will establish and maintain a reserve fund for replacements in a separate account in a bank?Concurrently with the effective commencement of rental assistance payments under the Project Rental Assistance Contract, the Mortgagor will deposit an amount?per month unless a different date or amount is approved in writing by HUD?. Cause: The cause is undeterminable. Effect: The Project is not in compliance with the Regulatory Agreement. Recommendation: I recommend the Property make required monthly deposits according to the Regulatory Agreement each month.
Finding 2022-002
2022-2 HUD 9250 Instructions not followed Condition: Reserve for replacement funds were not returned to the account as required by HUD. Criteria: $21,073 was approved to be utilized by HUD from the replacement reserve account for operations. HUD also required that the $21,073 be returned to the replacement reserve account, following approval of the 2022 contract and budget. The funds were not returned to the replacement reserve account as of 12/31/2022, although both the budget and contract had been approved, April 12, 2022. Cause: The cause is undeterminable. Effect: The Project did not comply with HUD 9250 instructions. Recommendation: I recommend management comply with all HUD instructions, rules, and regulations.
Finding 2022-001
2022-1 Reserve for Replacement Deposits Not Made Timely Condition: The Project did not make the required deposit into the bank account for January 2022 until February 2022. Criteria: According to the Regulatory Agreement, ?mortgagor will establish and maintain a reserve fund for replacements in a separate account in a bank?Concurrently with the effective commencement of rental assistance payments under the Project Rental Assistance Contract, the Mortgagor will deposit an amount?per month unless a different date or amount is approved in writing by HUD?. Cause: The cause is undeterminable. Effect: The Project is not in compliance with the Regulatory Agreement. Recommendation: I recommend the Property make required monthly deposits according to the Regulatory Agreement each month.