Finding 478703 (2022-005)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-07-17

AI Summary

  • Core Issue: The Corporation submitted the annual financial report to HUD late, missing the March 30, 2022 deadline.
  • Impacted Requirements: This violates the Regulatory Agreement, risking monetary penalties and potential default on the mortgage.
  • Recommended Follow-Up: Management should ensure timely submission of annual financial reports to HUD and improve cash flow for audit payments.

Finding Text

Finding 2022-005 - U.S. Department of Housing and Urban Development, Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate, CFDA #14.135 Statement of Condition: The Corporation did not submit the annual financial report to HUD for the year ended December 31, 2021 by the required deadline. Criteria: The Regulatory Agreement requires the Corporation to submit to HUD the annual financial report within 90 days following the end of each fiscal year. Effect: Noncompliance with Regulatory Agreement, monetary penalties and default under the note and mortgage. Cause: Limited available cash flow. Context: A test was performed to review the prior year submission of the annual financial report to HUD was submitted to HUD within 90 days following the end of the prior fiscal year. For the year ended December 31, 2021, the annual financial report to HUD was submitted on November 3, 2022, which is after the due date of March 30, 2022. Questioned Costs: N/A Recommendation: We recommend management ensure that the annual financial reports to HUD are submitted by the required due dates. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report to HUD for the year ended December 31, 2021 was submitted late. The project was unable to pay the prior audit fees timely due to limited available cash flow causing a delay in the audits. Management will work to improve cash flow for timely payment of the required annual audits.

Corrective Action Plan

Mount Sinai Foundation, Incorporated 703 Blue Street Fayetteville, North Carolina 28301 CORRECTIVE ACTION PLAN March 11, 2024 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Mount Sinai Foundation, Incorporated respectfully submits the following Corrective Action Plan for the year ended December 31, 2022. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings for the year ended December 31, 2022 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS - Financial Statement Audit and Federal Award Program Audits Finding 2022-005 - U.S. Department of Housing and Urban Development, Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate (Sections 221d(3) and (4) Multifamily - Market Rate Housing), CFDA #14.135 Recommendation: That management ensure that the annual financial reports to HUD are submitted by the required due dates. Action Taken: We agree with Finding 2022-005 and the recommendation described in the accompanying schedule of findings and questioned costs. The project was unable to pay the prior audit fees timely due to limited available cash flow causing a delay in the audits. Management will work to improve cash flow for timely payment of the required annual audits. If HUD has questions regarding this corrective action plan, please call (803) 873-2377. Sincerely yours, Dwayne Legrant President Omni Property Management and Development Managing Agent

Categories

HUD Housing Programs

Other Findings in this Audit

  • 478699 2022-001
    Material Weakness Repeat
  • 478700 2022-002
    Material Weakness Repeat
  • 478701 2022-003
    Material Weakness Repeat
  • 478702 2022-004
    - Repeat
  • 478704 2022-006
    Material Weakness
  • 1055141 2022-001
    Material Weakness Repeat
  • 1055142 2022-002
    Material Weakness Repeat
  • 1055143 2022-003
    Material Weakness Repeat
  • 1055144 2022-004
    - Repeat
  • 1055145 2022-005
    - Repeat
  • 1055146 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.135 Mortgage Insurance_rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate $7.10M
14.182 Section 8 New Construction and Substantial Rehabilitation $709,576