FAC Explorer

Finding 34789 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-10
Audit: 23840
Organization: La Maison Acadienne, Inc. (FL)
Auditor: Bellows Associates P A

AI Summary

  • Core Issue: The Project failed to adequately fund escrow accounts, resulting in a shortfall of $7,861.
  • Impacted Requirements: This finding relates to the requirement to pay all taxes and charges as per the regulatory agreement.
  • Recommended Follow-Up: Ensure timely and sufficient deposits to escrow accounts to meet future obligations; the Project has agreed to this recommendation.

Finding Text

SECTION III ? FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2022-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, CFDA 14.155 Finding Resolution Status: Resolved. Information on Universe Population Size: Escrow accounts. Sample Size Information: Escrow accounts. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by the regulatory agreement, the Project is required to pay, when due, all taxes, assessments and other charges. Statement of Condition: The Project is deficient in funding escrow deposits in the amount of $7,861, as required by HUD. Cause: The Project did not properly fund the escrow accounts based on current period insurance premiums and tax rates. Effect or Potential Effect: The escrow deposits are not sufficient to meet future obligations. Auditor Non-Compliance Code: Z - Other Reporting Views of Responsible Officials: The Project agrees with the finding and auditor?s recommendations will be adopted. Recommendation: The Project should make sufficient deposits to the escrow accounts in a timely manner. Response Indicator: Agree. Completion Date: 12/20/2022 Response: The shortfall was due to premium increases and a change in accounting staff. The required additional monthly deposit was deposited in December.

Corrective Action Plan

Oversight Agency for Audit, La Maison Acadienne, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2022. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067 Audit period: October 1, 2021 through September 30, 2022 The finding from the September 30, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2022-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, CFDA 14.155 Recommendation: The Project should make sufficient deposits to the escrow accounts in a timely manner. Action Taken: The shortfall was due to premium increases and a change in accounting staff. The required additional deposit was deposited in December. If the Oversight Agency for Audit has questions regarding these plans, please call Christine Harris at 954-835-9200. Sincerely yours, Christine Harris Accounting Manager

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Section 207/223 (f) Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.71M
14.195 Section 8 Housing Assistance Payments Program $545,232