FAC Explorer

Finding 59785 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-04-23
Audit: 56254
Organization: St Francis of Assisi, INC Dba: Lakeland Shores Apartments (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The Project failed to make required monthly deposits into the replacement reserve, resulting in a deficiency of $2,067 as of December 31, 2021.
  • Impacted Requirements: Regulatory agreement mandates timely deposits into the replacement reserve, which were not met due to management's oversight.
  • Recommended Follow-Up: Ensure timely catch-up payments are made; the deposit was completed on April 1, 2023, resolving the issue.

Finding Text

Federal agency: U.S. Department of Housing and Urban Development Criteria or Specific Requirement: Per the regulatory agreement a monthly deposit is to be made into the replacement reserve. As of December 31, 2021, the Project was deficient in these deposits and was required to make a deposit for the amount of deficient deposits, $2,067. Condition: The Project did not make a deposit to satisfy the deficient deposits in the replacement reserve. Context: Management did not make a deposit for the deficient escrows from the prior year. Questioned Costs: N/A Cause: Managements controls did not identify and correct the lack of payment on a timely basis. Effect: The replacement reserve was underfunded $2,067 at December 31, 2022. Repeat Finding: 2021-002 Recommendation: Recommend that a catchup payment is made as soon or possible to make the replacement reserve whole. Views of Responsible Official: The deposit was made on April 1, 2023, making the replacement reserve fully funded.

Corrective Action Plan

FINDINGS?FINANCIAL STATEMENT AUDIT There were no findings in the current year that require a corrective action plan. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Housing and Urban Development 2022-001 Section 223(f) HUD Insured Mortgage ? Assistance Listing No. 14.157 Per the regulatory agreement a monthly deposit is to be made into the replacement reserve. As of December 31, 2021, the Project was deficient in these deposits and was required to make a deposit for the amount of deficient deposits, $2,067. Recommendation: Recommend that a catchup payment is made as soon or possible to make the replacement reserve whole. There is no disagreement with the audit finding. Action taken in response to finding: The deposit was made on April 1, 2023, making the replacement reserve fully funded. Name of the contact person responsible for corrective action: Lisa Gindt Planned completion date for corrective action plan: April 1, 2023 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Lisa Gindt at 651-766-4368.

Categories

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Other Findings in this Audit

  • 636227 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.73M
14.182 Section 8 New Construction and Substantial Rehabilitation $297,524