FAC Explorer

Audit 7990

FY End
2023-06-30
Total Expended
$3.13M
Findings
4
Programs
2
Organization: Northside Properties, Inc. (FL)
Year: 2023 Accepted: 2023-12-21
Auditor: Barton Gonzalez & Myers P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6117 2023-002 Material Weakness - L
6118 2023-002 Material Weakness - L
582559 2023-002 Material Weakness - L
582560 2023-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.78M Yes 1
14.195 Section 8 Housing Assistance Payments Program $356,105 Yes 1

Contacts

Name Title Type
K864K5HA9CS4 John Proni Auditee
7275388217 Sergio Gonzalez Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE A – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Northside Properties, Inc. under programs of the federal government for the year ended June 30, 2023. 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 Northside Properties, Inc., it is not intended to and does not present the financial position, changes in net assets (deficit), or cash flows of Northside Properties, Inc. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Northside Properties, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE C - LOAN GUARANTEE The U.S. Department of Housing and Urban Development (HUD) guaranteed the mortgage note maintained by Northside Properties, Inc. Under the terms of the loan guarantee, Northside Properties, Inc. must comply with the rules and regulations established by HUD. The mortgage note is administered directly by Northside Properties, Inc., and balances and transactions relating to this program are included in Northside Properties, Inc.'s basic financial statements. The outstanding mortgage at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of the mortgage outstanding at June 30, 2023 is $2,662,824. De Minimis Rate Used: N Rate Explanation: Northside Properties, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance

Finding Details

Finding 2023-002
Finding 2023-002 Reporting – Late REAC Submission 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects 14.195 Section 8 Housing Assistance Payments Program Material Weakness in Internal Control – Material Noncompliance Condition: The Organization’s annual financial statement data was not submitted within the timeframes specified by HUD. The financial statement data was due by September 30, 2023, but was not filed until December 21, 2023. Criteria: The Real Estate Assessment Center (“REAC”) requires an accurate and timely submission of annual financial data no later than three months after fiscal year end. Questioned Cost: None Effect: The Organization did not submit annual financial statement data within the timeframe required by HUD, and therefore was noncompliant with this reporting requirement and in violation of the Regulatory Agreement. Failure to properly submit timely data could lead to significant issues including penalties and delays in funding. Cause: The Organization attempted to change its fiscal year end to December in order to have the same as the Project sponsor, however they did not contact HUD within the required timeframe and as result did not submit financial statement data for year ended June 30, 2023. Auditor’s Recommendation: We recommend that the Organization make every effort to submit its annual financial statement data within the timeframe specified by HUD. Views of Responsible Officials of the Auditee: We concur with the recommendation and have implemented various controls. See corrective action plan.
Finding 2023-002
Finding 2023-002 Reporting – Late REAC Submission 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects 14.195 Section 8 Housing Assistance Payments Program Material Weakness in Internal Control – Material Noncompliance Condition: The Organization’s annual financial statement data was not submitted within the timeframes specified by HUD. The financial statement data was due by September 30, 2023, but was not filed until December 21, 2023. Criteria: The Real Estate Assessment Center (“REAC”) requires an accurate and timely submission of annual financial data no later than three months after fiscal year end. Questioned Cost: None Effect: The Organization did not submit annual financial statement data within the timeframe required by HUD, and therefore was noncompliant with this reporting requirement and in violation of the Regulatory Agreement. Failure to properly submit timely data could lead to significant issues including penalties and delays in funding. Cause: The Organization attempted to change its fiscal year end to December in order to have the same as the Project sponsor, however they did not contact HUD within the required timeframe and as result did not submit financial statement data for year ended June 30, 2023. Auditor’s Recommendation: We recommend that the Organization make every effort to submit its annual financial statement data within the timeframe specified by HUD. Views of Responsible Officials of the Auditee: We concur with the recommendation and have implemented various controls. See corrective action plan.
Finding 2023-002
Finding 2023-002 Reporting – Late REAC Submission 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects 14.195 Section 8 Housing Assistance Payments Program Material Weakness in Internal Control – Material Noncompliance Condition: The Organization’s annual financial statement data was not submitted within the timeframes specified by HUD. The financial statement data was due by September 30, 2023, but was not filed until December 21, 2023. Criteria: The Real Estate Assessment Center (“REAC”) requires an accurate and timely submission of annual financial data no later than three months after fiscal year end. Questioned Cost: None Effect: The Organization did not submit annual financial statement data within the timeframe required by HUD, and therefore was noncompliant with this reporting requirement and in violation of the Regulatory Agreement. Failure to properly submit timely data could lead to significant issues including penalties and delays in funding. Cause: The Organization attempted to change its fiscal year end to December in order to have the same as the Project sponsor, however they did not contact HUD within the required timeframe and as result did not submit financial statement data for year ended June 30, 2023. Auditor’s Recommendation: We recommend that the Organization make every effort to submit its annual financial statement data within the timeframe specified by HUD. Views of Responsible Officials of the Auditee: We concur with the recommendation and have implemented various controls. See corrective action plan.
Finding 2023-002
Finding 2023-002 Reporting – Late REAC Submission 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects 14.195 Section 8 Housing Assistance Payments Program Material Weakness in Internal Control – Material Noncompliance Condition: The Organization’s annual financial statement data was not submitted within the timeframes specified by HUD. The financial statement data was due by September 30, 2023, but was not filed until December 21, 2023. Criteria: The Real Estate Assessment Center (“REAC”) requires an accurate and timely submission of annual financial data no later than three months after fiscal year end. Questioned Cost: None Effect: The Organization did not submit annual financial statement data within the timeframe required by HUD, and therefore was noncompliant with this reporting requirement and in violation of the Regulatory Agreement. Failure to properly submit timely data could lead to significant issues including penalties and delays in funding. Cause: The Organization attempted to change its fiscal year end to December in order to have the same as the Project sponsor, however they did not contact HUD within the required timeframe and as result did not submit financial statement data for year ended June 30, 2023. Auditor’s Recommendation: We recommend that the Organization make every effort to submit its annual financial statement data within the timeframe specified by HUD. Views of Responsible Officials of the Auditee: We concur with the recommendation and have implemented various controls. See corrective action plan.