FAC Explorer

Audit 56854

FY End
2022-06-30
Total Expended
$5.67M
Findings
4
Programs
1
Organization: Acadian Heritage Apartments (LA)
Year: 2022 Accepted: 2022-10-17
Auditor: Darnall Sikes & Frederick (accpas)

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
61400 2022-003 Significant Deficiency Yes P
61401 2022-004 - - E
637842 2022-003 Significant Deficiency Yes P
637843 2022-004 - - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $168,215 Yes 2

Contacts

Name Title Type
D4KSDZHUKW93 Adrienne Melancon Auditee
3372625990 Steven Moosa Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note: The accompanying schedule of Expenditures of Federal Awards has been prepared on the accrualbasis of accounting. The information in this schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, someamounts presented in this schedule may differ from amounts presented in, or used in preparationof, the basic financial statements. 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 5500300.

Finding Details

Finding 2022-003
2022-003 Tenant Security Deposits Condition: Tenant security deposits are not being reconciled on a monthly basis. Criteria: Tenant security deposits collected should be deposited into the security deposit bank account and recorded to the general ledger as a security deposit liability. While tenant security deposit forfeitures should be transferred to the operating account and recorded as a forfeiture in the general ledger. Cause: Tenant security deposits are not being reconciled on a monthly basis. As a result, errors in the record keeping and reconciling of tenant security deposits have occurred. Effect: Ineffective controls over record keeping and recording of security deposits impose an increased risk of inaccurate reporting and misappropriation. Recommendation: Controls over record keeping and recording of tenant security deposits should be strengthened with an increased emphasis on reconciling security deposit accounts to supporting documentation on a monthly basis.
Finding 2022-004
2022-004 Record Keeping of Tenant Files Condition: Tenant files are not being completed based on compliance requirements of HUD. Criteria: Tenant files should be maintained to ensure all compliance requirements of HUD are completed timely and appropriately. Cause: Tenant files are not being maintained with complete and accurate information. Information such as annual recertification letters, pet deposits, and move in/out checklist were missing from the tenant files. Effect: Noncompliance with requirements impose a risk of penalties and fines assessed by HUD. Recommendation: Controls over record keeping and maintaining tenant files should be strengthened with an increased emphasis on timely and appropriately documenting all compliance requirements of HUD.
Finding 2022-003
2022-003 Tenant Security Deposits Condition: Tenant security deposits are not being reconciled on a monthly basis. Criteria: Tenant security deposits collected should be deposited into the security deposit bank account and recorded to the general ledger as a security deposit liability. While tenant security deposit forfeitures should be transferred to the operating account and recorded as a forfeiture in the general ledger. Cause: Tenant security deposits are not being reconciled on a monthly basis. As a result, errors in the record keeping and reconciling of tenant security deposits have occurred. Effect: Ineffective controls over record keeping and recording of security deposits impose an increased risk of inaccurate reporting and misappropriation. Recommendation: Controls over record keeping and recording of tenant security deposits should be strengthened with an increased emphasis on reconciling security deposit accounts to supporting documentation on a monthly basis.
Finding 2022-004
2022-004 Record Keeping of Tenant Files Condition: Tenant files are not being completed based on compliance requirements of HUD. Criteria: Tenant files should be maintained to ensure all compliance requirements of HUD are completed timely and appropriately. Cause: Tenant files are not being maintained with complete and accurate information. Information such as annual recertification letters, pet deposits, and move in/out checklist were missing from the tenant files. Effect: Noncompliance with requirements impose a risk of penalties and fines assessed by HUD. Recommendation: Controls over record keeping and maintaining tenant files should be strengthened with an increased emphasis on timely and appropriately documenting all compliance requirements of HUD.