FAC Explorer

Audit 70020

FY End
2022-03-31
Total Expended
$1.30M
Findings
2
Programs
2
Organization: Cocaa Seminole Development, Inc. (OK)
Year: 2022 Accepted: 2022-12-04
Auditor: John Flusche CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
64086 2022-001 Significant Deficiency - P
640528 2022-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.27M Yes 1
14.195 Section 8 Housing Assistance Payments Program $31,299 - 0

Contacts

Name Title Type
HX5JMNKJN665 Westchester Realty & Management LLC Auditee
4052753855 John Flusche Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal activity of COCAA Seminole Development, Inc., HUD Project No. 117-EE046, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the uniform guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the presentation of the basic financial statements.NOTE B - EXPENDITURESTotal federal awards expended include current year accrued Section 8 Project Rental Assistance Contract and Section 202 Capital Advance at inception of the Project. No payments of principal or interest are due under the capital advance as long as the project is made available to low-income persons with disabilities. In addition, after 40 years the mortgage is considered paid in full. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
FINDING Ref Number: 2022-001 Title and CFDA Number of Federal Program: Section 202 Capital Advance CFDA # 14.181 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: The Project is not permitted to withdraw funds from the Replacement Reserve Account without the prior authorization from their HUD representative. Statement of Condition: The Project?s manager withdrew funds that were not approved by HUD using the HUD-9250 Funds Authorization from the Replacement Reserve worksheet. Cause: The Project?s management did not have the funds available to pay contractors for work performed on the property. Management did not submit Form 9250 requesting authorization to withdraw the funds. Effect or Potential Effect: The Project?s Replacement Reserve Account is underfunded by $3,000 from 2022 unauthorized withdraws. Reporting Views of Responsible Officials: The Project?s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Recommendation: The Project?s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Auditor?s Summary of the Auditee?s Comments on the Finding Recommendations: The Project?s management withdrew funds without receiving authorization to withdraw funds from the Replacement Reserve account. Funds should only be withdrawn from the Replacement Reserve account after the HUD-9250 ?Funds Authorization? form is signed by the HUD Representative. Response Indicator: Agree Completion Date: 06/23/2022 Response: The Project?s management will fully redeposit the funds into the Replacement Reserve account in 2022 and will not withdraw funds in the future without proper authorization.
Finding 2022-001
FINDING Ref Number: 2022-001 Title and CFDA Number of Federal Program: Section 202 Capital Advance CFDA # 14.181 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: The Project is not permitted to withdraw funds from the Replacement Reserve Account without the prior authorization from their HUD representative. Statement of Condition: The Project?s manager withdrew funds that were not approved by HUD using the HUD-9250 Funds Authorization from the Replacement Reserve worksheet. Cause: The Project?s management did not have the funds available to pay contractors for work performed on the property. Management did not submit Form 9250 requesting authorization to withdraw the funds. Effect or Potential Effect: The Project?s Replacement Reserve Account is underfunded by $3,000 from 2022 unauthorized withdraws. Reporting Views of Responsible Officials: The Project?s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Recommendation: The Project?s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Auditor?s Summary of the Auditee?s Comments on the Finding Recommendations: The Project?s management withdrew funds without receiving authorization to withdraw funds from the Replacement Reserve account. Funds should only be withdrawn from the Replacement Reserve account after the HUD-9250 ?Funds Authorization? form is signed by the HUD Representative. Response Indicator: Agree Completion Date: 06/23/2022 Response: The Project?s management will fully redeposit the funds into the Replacement Reserve account in 2022 and will not withdraw funds in the future without proper authorization.