FAC Explorer

Audit 55291

FY End
2022-10-31
Total Expended
$1.11M
Findings
4
Programs
3
Organization: Elm Manor Homes, INC 051-11208 Fka.#s 051-Eh102-Wah/l8 &051eh164wahl8 (VA)
Year: 2022 Accepted: 2023-03-29
Auditor: Brown Edwards & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
58466 2022-001 - - N
58467 2022-002 - - N
634908 2022-001 - - N
634909 2022-002 - - N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $824,048 Yes 2
14.195 Section 8 Housing Assistance Payments Program $248,917 - 0
14.191 Multifamily Housing Service Coordinators $36,403 - 0

Contacts

Name Title Type
DUN3XFHRSY83 Kathryn Overacker Auditee
5405634565 John Aldridge Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: This schedule of expenditures of federal awards was prepared on the accrual basis of accounting. Theinformation in this schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (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 756025.

Finding Details

Finding 2022-001
Section 223(f) HUD Insured Mortgage ? CFDA 14.155 (Special Tests and Provisions) Conditions and Criteria: The Corporation is to keep copies of all tenant checks for rent payments. We noted 10 of 25 tenants selected for testing did not have copies of the checks available. Effect: The auditor is unable to determine if checks are deposited timely and how much the check amount is. Cause: This occurred because copies of checks were not maintained prior to the checks being deposited. Auditor?s Recommendation: We recommend that the Corporation purchases a check scanner to scan check copies as tenants pay rent. Management?s Response: A check scanner was purchased to scan new incoming checks from tenants.
Finding 2022-002
Section 223(f) HUD Insured Mortgage ? CFDA 14.155 (Special Tests and Provisions) Conditions and Criteria: The Corporation is required to refund all security deposits within 30 days of tenant move out. The Corporation did return the security deposit in the correct amount; however, it was not returned within 30 days of the tenant move out date. Effect: Security deposit was not returned timely. Cause: This occurred due to an oversight at the Corporation. Auditor?s Recommendation: Communication with management to return security deposit once a tenant has left. Management?s Response: Management has implemented steps to ensure that future security deposit refunds are made within the 30-day requirement.
Finding 2022-001
Section 223(f) HUD Insured Mortgage ? CFDA 14.155 (Special Tests and Provisions) Conditions and Criteria: The Corporation is to keep copies of all tenant checks for rent payments. We noted 10 of 25 tenants selected for testing did not have copies of the checks available. Effect: The auditor is unable to determine if checks are deposited timely and how much the check amount is. Cause: This occurred because copies of checks were not maintained prior to the checks being deposited. Auditor?s Recommendation: We recommend that the Corporation purchases a check scanner to scan check copies as tenants pay rent. Management?s Response: A check scanner was purchased to scan new incoming checks from tenants.
Finding 2022-002
Section 223(f) HUD Insured Mortgage ? CFDA 14.155 (Special Tests and Provisions) Conditions and Criteria: The Corporation is required to refund all security deposits within 30 days of tenant move out. The Corporation did return the security deposit in the correct amount; however, it was not returned within 30 days of the tenant move out date. Effect: Security deposit was not returned timely. Cause: This occurred due to an oversight at the Corporation. Auditor?s Recommendation: Communication with management to return security deposit once a tenant has left. Management?s Response: Management has implemented steps to ensure that future security deposit refunds are made within the 30-day requirement.