FAC Explorer

Audit 54728

FY End
2022-03-31
Total Expended
$4.72M
Findings
2
Programs
2
Organization: Eastside Home Association (WA)
Year: 2022 Accepted: 2022-11-07
Auditor: Rf Company Cpa's P S

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59325 2022-001 Significant Deficiency - N
635767 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.54M Yes 1
14.195 Section 8 Housing Assistance Payments Program $1.18M Yes 0

Contacts

Name Title Type
M3ZFUVMY9WK3 Hank Thomas Auditee
4253922272 April Ann Flyte, CPA Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A. BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Eastside Home Association under programs of the federal government for the year ended March 31, 2022. 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 Eastside Home Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Eastside Home Association. 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. NOTE D. PASSED-THROUGH SUBRECIPIENTS: For the year ended March 31, 2022, there were no awards passed through to subrecipients. De Minimis Rate Used: N Rate Explanation: Eastside Home Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Under the U.S. Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (the Note), Eastside Home Association received Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Mortgage. The Note is secured by a deed of trust and provides for monthly payments of $15,437, including principal and interest at 3.35 percent until September 1, 2051. At March 31, 2022, $3,468,603 is outstanding.

Finding Details

Finding 2022-001
53800-010 Finding Reference Number 2022-001 53800-011 Title and CFDA Number of Federal Program U.S. Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, 14.155 53800-015 Type of Finding Federal Award Finding 53800-016 Finding Resolution Status In Process 53800-017 Information on Universe Population Size N/A 53800-018 Sample Size Information N/A 53800-019 Identification of Repeat Finding and Reference Number Yes, 2021-002 53800-020 Criteria The Organization must comply with HUD guidelines regarding monthly replacement reserve deposits. 53800-030 Statement of Condition The Organization's replacement reserve was underfunded by $8,676 as of March 31, 2022 S3800-032 Cause Mortgagee did not increase payments as required by HUD. Organization paid amount as stated on monthly mortgage statement. S3800-033 Effect or Potential Effect Organization was not in compliance with HUD guidelines for replacement reserve deposit requirements. S3800-035 Auditor Non-Compliance Code N - Reserve for Replacement S3800-040 Questioned Costs $8,676 S3800-045 Reporting Views of Responsible Officials Management agrees with the finding and will deposit the deficiency. S3800-037 FHA/Contract Number 12711240 S3800-038 Questioned Costs $8,676 S3800-080 Recommendation Management should have procedures in place to ensure that required monthly payments are remitted to the replacement reserve escrow. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations Management is in the process of correcting the deficiency. S3800-130 Response Indicator Agree S3800-140 Completion Date 7/30/2022 S3800-150 Response Management agrees with the finding and is in the process of replenishing the funds. S3800-160 Contact Person First Name Thomas S3800-170 Contact Person Middle Initial E S3800-180 Contact Person Last Name Anderson
Finding 2022-001
53800-010 Finding Reference Number 2022-001 53800-011 Title and CFDA Number of Federal Program U.S. Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, 14.155 53800-015 Type of Finding Federal Award Finding 53800-016 Finding Resolution Status In Process 53800-017 Information on Universe Population Size N/A 53800-018 Sample Size Information N/A 53800-019 Identification of Repeat Finding and Reference Number Yes, 2021-002 53800-020 Criteria The Organization must comply with HUD guidelines regarding monthly replacement reserve deposits. 53800-030 Statement of Condition The Organization's replacement reserve was underfunded by $8,676 as of March 31, 2022 S3800-032 Cause Mortgagee did not increase payments as required by HUD. Organization paid amount as stated on monthly mortgage statement. S3800-033 Effect or Potential Effect Organization was not in compliance with HUD guidelines for replacement reserve deposit requirements. S3800-035 Auditor Non-Compliance Code N - Reserve for Replacement S3800-040 Questioned Costs $8,676 S3800-045 Reporting Views of Responsible Officials Management agrees with the finding and will deposit the deficiency. S3800-037 FHA/Contract Number 12711240 S3800-038 Questioned Costs $8,676 S3800-080 Recommendation Management should have procedures in place to ensure that required monthly payments are remitted to the replacement reserve escrow. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations Management is in the process of correcting the deficiency. S3800-130 Response Indicator Agree S3800-140 Completion Date 7/30/2022 S3800-150 Response Management agrees with the finding and is in the process of replenishing the funds. S3800-160 Contact Person First Name Thomas S3800-170 Contact Person Middle Initial E S3800-180 Contact Person Last Name Anderson