FAC Explorer

Finding 396575 (2023-001)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-05-13
Audit: 306143
Organization: La Maison Acadienne, Inc. (FL)
Auditor: Bellows Associates P A

AI Summary

  • Core Issue: The project underfunded its replacement reserve account by $332 due to a lack of increased funding.
  • Impacted Requirements: Monthly deposits to the reserve account are required by HUD regulations.
  • Recommended Follow-Up: Management should adopt new procedures and a checklist to ensure accurate monthly deposits by 09/30/2024.

Finding Text

FINDING No. 2023-001:Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status:Unresolved. Information on Universe Population Size:All replacement reserve deposits for the year ended September 30, 2023. Sample Size Information:All replacement reserve deposits for the year ended September 30, 2023. Identification of Repeat Finding and Finding Reference Number:No. Criteria:In accordance with HUD, required monthly deposits must be made to the Project’s reserve for replacement account. Statement of Condition:The Project underfunded the account by $332. Cause:An increase in funding was not implemented. Effect or Potential Effect:Deficiently funded reserve for replacement account. Auditor Non-Compliance Code:N – Reserve for Replacements Deposits Reporting Views of Responsible Officials:The Project agrees with the finding and the auditor’s recommendations will be adopted.Recommendation:Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator:Agree. Completion Date:09/30/2024 Response:Deposits are made to the replacement reserves on a monthly basis. A new checklist is being implemented to ensure the accuracy of the amounts and completeness of the transfers.

Corrective Action Plan

Oversight Agency for Audit, La Maison Acadienne, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2023. 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, 2022 through September 30, 2023 The finding from the September 30, 2023 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. 2023-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Action Taken: Deposits are made to the replacement reserves on a monthly basis. A new checklist is being implemented to ensure the accuracy of the amounts and completeness of the transfers. If the Oversight Agency for Audit has questions regarding these plans, please call Irene Phillips at 954- 835-9200. Sincerely yours, Irene Phillips CFO

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.62M
14.195 Section 8 Housing Assistance Payments Program $4,523