EIN: 205022041
UEI: DETAYVETZGJ9
Data as of August 24, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on April 24, 2023. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by October 24, 2023 (1036 days ago).
What is a management decision? →The Corporation did not submit its annual financial report, certified by a Certified Public Accountant, to HUD within 90 days following of the end of the fiscal year December 31, 2021. Criteria: HUD requirements, under the Uniform Financial Reporting Standards for HUD Housing Programs; Final Rule, and the Regulatory Agreement require that the Project's annual financial statements report be submitted to HUD within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations and the possibility that the Project could be subject to criminal and civil monetary penalties. Cause: The completion of the audit for the fiscal year ended December 31, 2021 was delayed due to the lack of cash flow to pay prior years' audit expense. Context: A test was performed to review the most recent fiscal year audit submission to HUD. The annual financial statement report for the fiscal year December 31, 2021 was found to have not been submitted to HUD within 90 days following the end of the fiscal year December 31, 2021. Questioned Costs: N/A Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. We also recommend that the project request funds from replacement reserve to fund the annual audit expense. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report, certified by a Certified Public Accountant, for the year ended December 31, 2021 was not submitted to HUD within the required due date. On May 2, 2022, management received authorization from HUD to take a temporary loan from the replacement reserve to pay the prior years' audit expenses owed. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. The annual financial report for the fiscal year ended December 31, 2021 was submitted to HUD on July 27, 2022.
Show full finding ▾Hide full finding ▴Finding 2022-001 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), Assistance Listing #14.157 Statement of Condition: The Corporation did not submit its annual financial report, certified by a Certified Public Accountant, to HUD within 90 days following of the end of the fiscal year December 31, 2021. Criteria: HUD requirements, under the Uniform Financial Reporting Standards for HUD Housing Programs; Final Rule, and the Regulatory Agreement require that the Project's annual financial statements report be submitted to HUD within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations and the possibility that the Project could be subject to criminal and civil monetary penalties. Cause: The completion of the audit for the fiscal year ended December 31, 2021 was delayed due to the lack of cash flow to pay prior years' audit expense. Context: A test was performed to review the most recent fiscal year audit submission to HUD. The annual financial statement report for the fiscal year December 31, 2021 was found to have not been submitted to HUD within 90 days following the end of the fiscal year December 31, 2021. Questioned Costs: N/A Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. We also recommend that the project request funds from replacement reserve to fund the annual audit expense. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report, certified by a Certified Public Accountant, for the year ended December 31, 2021 was not submitted to HUD within the required due date. On May 2, 2022, management received authorization from HUD to take a temporary loan from the replacement reserve to pay the prior years' audit expenses owed. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. The annual financial report for the fiscal year ended December 31, 2021 was submitted to HUD on July 27, 2022.
SCOTT MITCHELL ANNEX, INC. Norlina, North Carolina CORRECTIVE ACTION PLAN March 14, 2023 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Scott Mitchell Annex, Inc. 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 Greensboro, North Carolina 27410 The finding from the December 31, 2022 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS - Federal Award Program Audit Finding 2022-001 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), Assistance Listing #14.157 Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. Management's Response: We agree with Finding 2022-001 and the recommendation described in the accompanying schedule of findings and questioned costs. On May 2, 2022, management received authorization from HUD to take a temporary loan from the replacement reserve to pay the prior years' audit expenses owed. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. If HUD has questions regarding this action plan, please call Michael Jameyson at (704)771-1696. Sincerely yours, Michael Jameyson, President Multifamily Select, Inc. Managing Agent
2021-001
FAC accepted this audit on July 31, 2022 — management decision was due January 31, 2023.
The Corporation did not submit its annual financial report, certified by a Certified Public Accountant, to HUD within 90 days following of the end of the fiscal year December 31, 2020. Criteria: HUD requirements, under the Uniform Financial Reporting Standards for HUD Housing Programs; Final Rule, and the Regulatory Agreement require that the Project's annual financial statements report be submitted to HUD within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations and the possibility that the Project could be subject to criminal and civil monetary penalties. Cause: The completion of the audit for the fiscal year ended December 31, 2020 was delayed due to the lack of cash flow to pay prior years' audit expense. Context: A test was performed to review the most recent fiscal year audit submission to HUD. The annual financial statement report for the fiscal year December 31, 2020 was found to have not been submitted to HUD within 90 days following the end of the fiscal year December 31, 2020. Questioned Costs: N/A Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. We also recommend that the project request funds from replacement reserve to fund the annual audit expense. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report, certified by a Certified Public Accountant, for the year ended December 31, 2020 was not submitted to HUD within the required due date. On May 2, 2022, management received authorization from HUD to take a temporary loan from the replacement reserve to pay the prior years' audit expenses owed. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. The annual financial report for the fiscal year ended December 31, 2020 has not been submitted to HUD as of year ended December 31, 2021.
Show full finding ▾Hide full finding ▴Finding 2021-001 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), CFDA #14.157 Statement of Condition: The Corporation did not submit its annual financial report, certified by a Certified Public Accountant, to HUD within 90 days following of the end of the fiscal year December 31, 2020. Criteria: HUD requirements, under the Uniform Financial Reporting Standards for HUD Housing Programs; Final Rule, and the Regulatory Agreement require that the Project's annual financial statements report be submitted to HUD within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations and the possibility that the Project could be subject to criminal and civil monetary penalties. Cause: The completion of the audit for the fiscal year ended December 31, 2020 was delayed due to the lack of cash flow to pay prior years' audit expense. Context: A test was performed to review the most recent fiscal year audit submission to HUD. The annual financial statement report for the fiscal year December 31, 2020 was found to have not been submitted to HUD within 90 days following the end of the fiscal year December 31, 2020. Questioned Costs: N/A Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. We also recommend that the project request funds from replacement reserve to fund the annual audit expense. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report, certified by a Certified Public Accountant, for the year ended December 31, 2020 was not submitted to HUD within the required due date. On May 2, 2022, management received authorization from HUD to take a temporary loan from the replacement reserve to pay the prior years' audit expenses owed. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. The annual financial report for the fiscal year ended December 31, 2020 has not been submitted to HUD as of year ended December 31, 2021.
SCOTT MITCHEELL ANNEX, INC. Norlina, North Carolina CORRECTIVE ACTION PLAN July 12, 2022 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Scott Mitchell Annex, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2021. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 The finding from the December 31, 2021 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS - Federal Award Program Audit Finding 2021-001: Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. Management's Response: We agree with Finding 2021-001 and the recommendation described in the accompanying schedule of findings and questioned costs. On May 2, 2022, management received authorization from HUD to take a temporary loan from the replacement reserve to pay the prior years' audit expenses owed. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. Finding 2021-002: Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward within the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Management's Response: We agree with Finding 2021-002 and the recommendation described in the accompanying schedule of findings and questioned costs. On May 2, 2022, management received authorization from HUD to take a temporary loan from the replacement reserve to pay the prior years' audit expenses owed. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within required due dates. If HUD has questions regarding this action plan, please call Michael Jameyson at (704)771-1696. Sincerely yours, Michael Jameyson, President Multifamily Select, Inc. Managing Agent
2020-002
The Corporation did not submit the data collection forms and required reporting package to the Federal Audit Clearinghouse (FAC) within the required due dates for the single audits for the year ending December 31, 2020. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. Additionally, 2 CFR Section 200.512(a) requires the reporting package and data collection form to be submitted to the FAC the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Effect: Noncompliance with Uniform Guidance regulations. Cause: The completion of the audit for the fiscal year ended December 31, 2020 was delayed due to the lack of cash flow to pay prior years' audit expense. Context: A test was performed to review the two most recent fiscal year audits performed under the Uniform Guidance and the required data collection forms were submitted to the FAC to determine if the Corporation qualified as a low-risk auditee. A single audit was performed under the Uniform Guidance for the years ending December 31, 2019 and 2020, however, the data collection form was not submitted to the FAC within the required due dates. Questioned Costs: N/A Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. We also recommend that the project request funds from replacement reserve to fund the annual audit expense. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the data collection form for the years ended December 31, 2019 and 2020 was not submitted to the FAC within the required due dates. On May 2, 2022, management received authorization from HUD to take a temporary loan from the replacement reserve to pay the prior years' audit expenses owed. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within required due dates. The data collection form for the year ending December 31, 2019 was submitted to the FAC on January 27, 2021. The data collection form for the year ending December 31, 2020 has not been submitted to the FAC as of year ended December 31, 2021.
Show full finding ▾Hide full finding ▴Finding 2021-002 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), CFDA #14.157 Statement of Condition: The Corporation did not submit the data collection forms and required reporting package to the Federal Audit Clearinghouse (FAC) within the required due dates for the single audits for the year ending December 31, 2020. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. Additionally, 2 CFR Section 200.512(a) requires the reporting package and data collection form to be submitted to the FAC the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Effect: Noncompliance with Uniform Guidance regulations. Cause: The completion of the audit for the fiscal year ended December 31, 2020 was delayed due to the lack of cash flow to pay prior years' audit expense. Context: A test was performed to review the two most recent fiscal year audits performed under the Uniform Guidance and the required data collection forms were submitted to the FAC to determine if the Corporation qualified as a low-risk auditee. A single audit was performed under the Uniform Guidance for the years ending December 31, 2019 and 2020, however, the data collection form was not submitted to the FAC within the required due dates. Questioned Costs: N/A Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. We also recommend that the project request funds from replacement reserve to fund the annual audit expense. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the data collection form for the years ended December 31, 2019 and 2020 was not submitted to the FAC within the required due dates. On May 2, 2022, management received authorization from HUD to take a temporary loan from the replacement reserve to pay the prior years' audit expenses owed. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within required due dates. The data collection form for the year ending December 31, 2019 was submitted to the FAC on January 27, 2021. The data collection form for the year ending December 31, 2020 has not been submitted to the FAC as of year ended December 31, 2021.
SCOTT MITCHEELL ANNEX, INC. Norlina, North Carolina CORRECTIVE ACTION PLAN July 12, 2022 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Scott Mitchell Annex, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2021. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 The finding from the December 31, 2021 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS - Federal Award Program Audit Finding 2021-001: Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. Management's Response: We agree with Finding 2021-001 and the recommendation described in the accompanying schedule of findings and questioned costs. On May 2, 2022, management received authorization from HUD to take a temporary loan from the replacement reserve to pay the prior years' audit expenses owed. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. Finding 2021-002: Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward within the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Management's Response: We agree with Finding 2021-002 and the recommendation described in the accompanying schedule of findings and questioned costs. On May 2, 2022, management received authorization from HUD to take a temporary loan from the replacement reserve to pay the prior years' audit expenses owed. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within required due dates. If HUD has questions regarding this action plan, please call Michael Jameyson at (704)771-1696. Sincerely yours, Michael Jameyson, President Multifamily Select, Inc. Managing Agent
2020-003
FAC accepted this audit on July 31, 2022 — management decision was due January 31, 2023.
During the year ended December 31, 2020, the Project did not make four of the twelve required monthly deposits to the replacement reserve account totaling $1,478. Additionally, the Project received an approved loan of $7,461 from the replacement reserve in 2018 and the loan has not been repaid as of the report date. Criteria: HUD Handbook 4370.2 REV-1 CHG-1, Chapter 2, Section 2-7 and the Regulatory Agreement specifies that the replacement reserve account must be maintained in a separate account, with monthly deposits made as required. Additionally, HUD Handbook 4350.1 REV-1, Chapter 4, 4-8 requires a loan from the replacement reserve account to be repaid within a reasonable period of time. Effect: Noncompliance with HUD regulations. Cause: Management oversight. Context: A test to compare actual deposits to the replacement reserve account to the required deposits to the replacement reserve account was performed. During the year ended December 31, 2020, eight months of the required deposits totaling $2,954 were made to the replacement reserve account. A withdrawal of $7,461 from the replacement reserve account was approved in 2018 as a loan to be repaid, no repayment was made on the 2018 loan as of December 31, 2020. Questioned Costs: N/A Recommendation: We recommend that management work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment requirement. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the Corporation did not make the required deposits and make the required replacement reserve account. The management company will work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment required. The replacement reserve account had $74,293 as of December 31, 2020 which exceeds the HUD suggested minimum replacement reserve account balance of $1,000 per unit.
Show full finding ▾Hide full finding ▴Finding 2020-001 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), CFDA #14.157 Statement of Condition: During the year ended December 31, 2020, the Project did not make four of the twelve required monthly deposits to the replacement reserve account totaling $1,478. Additionally, the Project received an approved loan of $7,461 from the replacement reserve in 2018 and the loan has not been repaid as of the report date. Criteria: HUD Handbook 4370.2 REV-1 CHG-1, Chapter 2, Section 2-7 and the Regulatory Agreement specifies that the replacement reserve account must be maintained in a separate account, with monthly deposits made as required. Additionally, HUD Handbook 4350.1 REV-1, Chapter 4, 4-8 requires a loan from the replacement reserve account to be repaid within a reasonable period of time. Effect: Noncompliance with HUD regulations. Cause: Management oversight. Context: A test to compare actual deposits to the replacement reserve account to the required deposits to the replacement reserve account was performed. During the year ended December 31, 2020, eight months of the required deposits totaling $2,954 were made to the replacement reserve account. A withdrawal of $7,461 from the replacement reserve account was approved in 2018 as a loan to be repaid, no repayment was made on the 2018 loan as of December 31, 2020. Questioned Costs: N/A Recommendation: We recommend that management work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment requirement. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the Corporation did not make the required deposits and make the required replacement reserve account. The management company will work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment required. The replacement reserve account had $74,293 as of December 31, 2020 which exceeds the HUD suggested minimum replacement reserve account balance of $1,000 per unit.
SCOTT MITCHEELL ANNEX, INC. Norlina, North Carolina CORRECTIVE ACTION PLAN June 16, 2022 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Scott Mitchell Annex, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2020. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 The finding from the December 31, 2020 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS - Federal Award Program Audit Finding 2020-001: Recommendation: We recommend that management work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment requirement. Management's Response: We agree with Finding 2020-001 and the recommendation described in the accompanying schedule of findings and questioned costs. The management company will work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment required. The replacement reserve account had $74,293 as of December 31, 2020 which exceeds the HUD suggested minimum replacement reserve account balance of $1,000 per unit. Finding 2020-002: Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. Management's Response: We agree with Finding 2020-002 and the recommendation described in the accompanying schedule of findings and questioned costs. Management will provide additional oversight to ensure the annual financial reports are submitted to HUD each fiscal year going forward within required due dates. The annual financial reports for the fiscal year ended December 31, 2019 was submitted to HUD on January 12, 2021. Finding 2020-003: Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward within the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Management's Response: We agree with Finding 2020-003 and the recommendation described in the accompanying schedule of findings and questioned costs. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within required due dates. The data collection forms the years ended December 31, 2018 and 2019 were submitted to the FAC on January 27, 2021. If HUD has questions regarding this action plan, please call Michael Jameyson at (704)771-1696. Sincerely yours, Michael Jameyson, President Multifamily Select, Inc. Managing Agent
2019-001
The Corporation did not submit its annual financial report, certified by a Certified Public Accountant, to HUD within 90 days following of the end of the fiscal year December 31, 2019. Criteria: HUD requirements, under the Uniform Financial Reporting Standards for HUD Housing Programs; Final Rule, and the Regulatory Agreement require that the Project's annual financial statements report be submitted to HUD within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations and the possibility that the Project could be subject to criminal and civil monetary penalties. Cause: Effective May 1, 2018, the Corporation changed management. The prior management company did not turn over the books and records, therefore, delaying the completion of the audits for the fiscal years ended December 31, 2018 and 2019. Context: A test was performed to review the most recent fiscal year audit submission to HUD. The annual financial statement report for the fiscal year December 31, 2019 was found to have been submitted to HUD on January 12, 2021. Questioned Costs: N/A Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report, certified by a Certified Public Accountant, for the year ended December 31, 2019 was not submitted to HUD within the required due date. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. The annual financial report for the fiscal years ended December 31, 2019 was submitted to HUD on January 12, 2021.
Show full finding ▾Hide full finding ▴Finding 2020-002 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), CFDA #14.157 Statement of Condition: The Corporation did not submit its annual financial report, certified by a Certified Public Accountant, to HUD within 90 days following of the end of the fiscal year December 31, 2019. Criteria: HUD requirements, under the Uniform Financial Reporting Standards for HUD Housing Programs; Final Rule, and the Regulatory Agreement require that the Project's annual financial statements report be submitted to HUD within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations and the possibility that the Project could be subject to criminal and civil monetary penalties. Cause: Effective May 1, 2018, the Corporation changed management. The prior management company did not turn over the books and records, therefore, delaying the completion of the audits for the fiscal years ended December 31, 2018 and 2019. Context: A test was performed to review the most recent fiscal year audit submission to HUD. The annual financial statement report for the fiscal year December 31, 2019 was found to have been submitted to HUD on January 12, 2021. Questioned Costs: N/A Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report, certified by a Certified Public Accountant, for the year ended December 31, 2019 was not submitted to HUD within the required due date. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. The annual financial report for the fiscal years ended December 31, 2019 was submitted to HUD on January 12, 2021.
SCOTT MITCHEELL ANNEX, INC. Norlina, North Carolina CORRECTIVE ACTION PLAN June 16, 2022 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Scott Mitchell Annex, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2020. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 The finding from the December 31, 2020 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS - Federal Award Program Audit Finding 2020-001: Recommendation: We recommend that management work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment requirement. Management's Response: We agree with Finding 2020-001 and the recommendation described in the accompanying schedule of findings and questioned costs. The management company will work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment required. The replacement reserve account had $74,293 as of December 31, 2020 which exceeds the HUD suggested minimum replacement reserve account balance of $1,000 per unit. Finding 2020-002: Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. Management's Response: We agree with Finding 2020-002 and the recommendation described in the accompanying schedule of findings and questioned costs. Management will provide additional oversight to ensure the annual financial reports are submitted to HUD each fiscal year going forward within required due dates. The annual financial reports for the fiscal year ended December 31, 2019 was submitted to HUD on January 12, 2021. Finding 2020-003: Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward within the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Management's Response: We agree with Finding 2020-003 and the recommendation described in the accompanying schedule of findings and questioned costs. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within required due dates. The data collection forms the years ended December 31, 2018 and 2019 were submitted to the FAC on January 27, 2021. If HUD has questions regarding this action plan, please call Michael Jameyson at (704)771-1696. Sincerely yours, Michael Jameyson, President Multifamily Select, Inc. Managing Agent
The Corporation did not submit the data collection forms and required reporting package to the Federal Audit Clearinghouse (FAC) within the required due dates for the single audits for the years ended December 31, 2018 and 2019. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. Additionally, 2 CFR Section 200.512(a) requires the reporting package and data collection form to be submitted to the FAC the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Effect: Noncompliance with Uniform Guidance regulations. Cause: Effective May 1, 2018, the Corporation changed management. The prior management company did not turn over the books and records, therefore, delaying the completion of the audits for the years ended December 31, 2018 and 2019. Context: A test was performed to review the two most recent fiscal year audits performed under the Uniform Guidance and the required data collection forms were submitted to the FAC to determine if the Corporation qualified as a low-risk auditee. A single audit was performed under the Uniform Guidance for the years ending December 31, 2018 and 2019, however, the data collection form was not submitted to the FAC within the required due dates. Questioned Costs: N/A Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward within the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the data collection form for the year ended December 31, 2018 and 2019 was not submitted to the FAC within the required due dates. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within required due dates. The data collection forms the years ended December 31, 2018 and 2019 were submitted to the FAC on January 27, 2021.
Show full finding ▾Hide full finding ▴Finding 2020-003 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), CFDA #14.157 Statement of Condition: The Corporation did not submit the data collection forms and required reporting package to the Federal Audit Clearinghouse (FAC) within the required due dates for the single audits for the years ended December 31, 2018 and 2019. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. Additionally, 2 CFR Section 200.512(a) requires the reporting package and data collection form to be submitted to the FAC the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Effect: Noncompliance with Uniform Guidance regulations. Cause: Effective May 1, 2018, the Corporation changed management. The prior management company did not turn over the books and records, therefore, delaying the completion of the audits for the years ended December 31, 2018 and 2019. Context: A test was performed to review the two most recent fiscal year audits performed under the Uniform Guidance and the required data collection forms were submitted to the FAC to determine if the Corporation qualified as a low-risk auditee. A single audit was performed under the Uniform Guidance for the years ending December 31, 2018 and 2019, however, the data collection form was not submitted to the FAC within the required due dates. Questioned Costs: N/A Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward within the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the data collection form for the year ended December 31, 2018 and 2019 was not submitted to the FAC within the required due dates. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within required due dates. The data collection forms the years ended December 31, 2018 and 2019 were submitted to the FAC on January 27, 2021.
SCOTT MITCHEELL ANNEX, INC. Norlina, North Carolina CORRECTIVE ACTION PLAN June 16, 2022 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Scott Mitchell Annex, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2020. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 The finding from the December 31, 2020 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS - Federal Award Program Audit Finding 2020-001: Recommendation: We recommend that management work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment requirement. Management's Response: We agree with Finding 2020-001 and the recommendation described in the accompanying schedule of findings and questioned costs. The management company will work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment required. The replacement reserve account had $74,293 as of December 31, 2020 which exceeds the HUD suggested minimum replacement reserve account balance of $1,000 per unit. Finding 2020-002: Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. Management's Response: We agree with Finding 2020-002 and the recommendation described in the accompanying schedule of findings and questioned costs. Management will provide additional oversight to ensure the annual financial reports are submitted to HUD each fiscal year going forward within required due dates. The annual financial reports for the fiscal year ended December 31, 2019 was submitted to HUD on January 12, 2021. Finding 2020-003: Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward within the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Management's Response: We agree with Finding 2020-003 and the recommendation described in the accompanying schedule of findings and questioned costs. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within required due dates. The data collection forms the years ended December 31, 2018 and 2019 were submitted to the FAC on January 27, 2021. If HUD has questions regarding this action plan, please call Michael Jameyson at (704)771-1696. Sincerely yours, Michael Jameyson, President Multifamily Select, Inc. Managing Agent
2019-002
FAC accepted this audit on January 26, 2021 — management decision was due July 26, 2021.
During the year ended December 31, 2019, the Project did not make the twelve required monthly deposits to the replacement reserve account totaling $4,432. Additionally, the Project received an approved loan of $7,461 from the replacement reserve in 2018 and the loan has not been repaid as of the report date. Criteria: HUD Handbook 4370.2 REV-1 CHG-1, Chapter 2, Section 2-7 and the Regulatory Agreement specifies that the replacement reserve account must be maintained in a separate account, with monthly deposits made as required. Additionally, HUD Handbook 4350.1 REV-1, Chapter 4, 4-8 requires a loan from the replacement reserve account to be repaid within a reasonable period of time. Effect: Noncompliance with HUD regulations. Cause: Management oversight. Context: A test to compare actual deposits to the replacement reserve account to the required deposits to the replacement reserve account was performed. During the year ended December 31, 2019, none of the required deposits totaling $4,432 were made to the replacement reserve account. A withdrawal of $7,461 from the replacement reserve account was approved in 2018 as a loan to be repaid, no repayment was made on the 2018 loan during the year ended December 31, 2019. Questioned Costs: N/A Recommendation: We recommend that management work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment requirement. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the Corporation did not make the required deposits and make the required replacement reserve account. The prior management company did not provide adequate records and delayed the processing of the PRAC renewal. The new management company will work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment required. The replacement reserve account has $71,328 as of December 31, 2019 which exceeds the HUD suggested minimum replacement reserve account balance of $1,000 per unit.
Show full finding ▾Hide full finding ▴Finding 2019-001 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), CFDA #14.157 Statement of Condition: During the year ended December 31, 2019, the Project did not make the twelve required monthly deposits to the replacement reserve account totaling $4,432. Additionally, the Project received an approved loan of $7,461 from the replacement reserve in 2018 and the loan has not been repaid as of the report date. Criteria: HUD Handbook 4370.2 REV-1 CHG-1, Chapter 2, Section 2-7 and the Regulatory Agreement specifies that the replacement reserve account must be maintained in a separate account, with monthly deposits made as required. Additionally, HUD Handbook 4350.1 REV-1, Chapter 4, 4-8 requires a loan from the replacement reserve account to be repaid within a reasonable period of time. Effect: Noncompliance with HUD regulations. Cause: Management oversight. Context: A test to compare actual deposits to the replacement reserve account to the required deposits to the replacement reserve account was performed. During the year ended December 31, 2019, none of the required deposits totaling $4,432 were made to the replacement reserve account. A withdrawal of $7,461 from the replacement reserve account was approved in 2018 as a loan to be repaid, no repayment was made on the 2018 loan during the year ended December 31, 2019. Questioned Costs: N/A Recommendation: We recommend that management work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment requirement. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the Corporation did not make the required deposits and make the required replacement reserve account. The prior management company did not provide adequate records and delayed the processing of the PRAC renewal. The new management company will work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment required. The replacement reserve account has $71,328 as of December 31, 2019 which exceeds the HUD suggested minimum replacement reserve account balance of $1,000 per unit.
SCOTT MITCHEELL ANNEX, INC. Norlina, North Carolina CORRECTIVE ACTION PLAN December 8, 2020 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Scott Mitchell Annex, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2019. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 The finding from the December 31, 2019 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS - Financial Statement Audit and Federal Award Program Audits Finding 2019-001: Recommendation: We recommend that management work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment requirement. Management's Response: We agree with Finding 2019-001 and the recommendation described in the accompanying schedule of findings and questioned costs. The prior management company did not provide adequate records and delayed the processing of the PRAC renewal. The new management company will work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment required. The replacement reserve account has $71,328 as of December 31, 2019 which exceeds the HUD suggested minimum replacement reserve account balance of $1,000 per unit. Finding 2019-002: Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward. Management's Response: We agree with Finding 2019-002 and the recommendation described in the accompanying schedule of findings and questioned costs. The Corporation changed management effective May 1, 2018 and the new management will ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward. The data collection form for the year ended December 31, 2018 is in process of being submitted. Finding 2019-003: Recommendation: We recommend that management ensure the Corporation maintains adequate insurance coverage at all times. Management's Response: We agree with Finding 2019-003 and the recommendation described in the accompanying schedule of findings and questioned costs. Management executed an insurance policy effective April 22, 2020. If HUD has questions regarding this action plan, please call Michael Jameyson at (704)771-1696. Sincerely yours, Michael Jameyson, President Multifamily Select, Inc. Managing Agent
2018-001
The Corporation did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the previous years single audits performed. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. Effect: Noncompliance with Uniform Guidance regulations. Cause: Prior management oversight. Context: A test was performed to review the two most recent fiscal year audits performed under the Uniform Guidance and the required data collection forms were submitted to the FAC to determine if the Corporation qualified as a low-risk auditee. Audits were performed under the Uniform Guidance for the two most recent fiscal years, however, no data collection forms have even been submitted to the FAC. Questioned Costs: N/A Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the data collection forms were not submitted to the FAC. The Corporation changed management effective May 1, 2018 and the new management will ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward. The data collection form for the year ended December 31, 2018 is in process of being submitted.
Show full finding ▾Hide full finding ▴Finding 2019-002 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), CFDA #14.157 Statement of Condition: The Corporation did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the previous years single audits performed. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. Effect: Noncompliance with Uniform Guidance regulations. Cause: Prior management oversight. Context: A test was performed to review the two most recent fiscal year audits performed under the Uniform Guidance and the required data collection forms were submitted to the FAC to determine if the Corporation qualified as a low-risk auditee. Audits were performed under the Uniform Guidance for the two most recent fiscal years, however, no data collection forms have even been submitted to the FAC. Questioned Costs: N/A Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the data collection forms were not submitted to the FAC. The Corporation changed management effective May 1, 2018 and the new management will ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward. The data collection form for the year ended December 31, 2018 is in process of being submitted.
SCOTT MITCHEELL ANNEX, INC. Norlina, North Carolina CORRECTIVE ACTION PLAN December 8, 2020 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Scott Mitchell Annex, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2019. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 The finding from the December 31, 2019 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS - Financial Statement Audit and Federal Award Program Audits Finding 2019-001: Recommendation: We recommend that management work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment requirement. Management's Response: We agree with Finding 2019-001 and the recommendation described in the accompanying schedule of findings and questioned costs. The prior management company did not provide adequate records and delayed the processing of the PRAC renewal. The new management company will work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment required. The replacement reserve account has $71,328 as of December 31, 2019 which exceeds the HUD suggested minimum replacement reserve account balance of $1,000 per unit. Finding 2019-002: Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward. Management's Response: We agree with Finding 2019-002 and the recommendation described in the accompanying schedule of findings and questioned costs. The Corporation changed management effective May 1, 2018 and the new management will ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward. The data collection form for the year ended December 31, 2018 is in process of being submitted. Finding 2019-003: Recommendation: We recommend that management ensure the Corporation maintains adequate insurance coverage at all times. Management's Response: We agree with Finding 2019-003 and the recommendation described in the accompanying schedule of findings and questioned costs. Management executed an insurance policy effective April 22, 2020. If HUD has questions regarding this action plan, please call Michael Jameyson at (704)771-1696. Sincerely yours, Michael Jameyson, President Multifamily Select, Inc. Managing Agent
2018-002
The Corporation did not maintain any insurance on the Project during the year ended December 31, 2019. Criteria: HUD Handbook 4350.1 REV-1, Chapter 21 specifies that the Project must maintain the required insurance coverage. Effect: Noncompliance with HUD guidelines and potential loss of assets. Cause: Management oversight. Context: A test was performed to review the insurance policy for the year ending December 31, 2019 for adequate coverage. It was noted that the Corporation did not have an insurance policy in place during the year ended December 31, 2019. Questioned Costs: N/A Recommendation: We recommend that management ensure the Corporation maintains adequate insurance coverage at all times. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the Corporation did not have the required insurance policy in place. Management executed an insurance policy effective April 22, 2020.
Show full finding ▾Hide full finding ▴Finding 2019-003 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), CFDA #14.157 Statement of Condition: The Corporation did not maintain any insurance on the Project during the year ended December 31, 2019. Criteria: HUD Handbook 4350.1 REV-1, Chapter 21 specifies that the Project must maintain the required insurance coverage. Effect: Noncompliance with HUD guidelines and potential loss of assets. Cause: Management oversight. Context: A test was performed to review the insurance policy for the year ending December 31, 2019 for adequate coverage. It was noted that the Corporation did not have an insurance policy in place during the year ended December 31, 2019. Questioned Costs: N/A Recommendation: We recommend that management ensure the Corporation maintains adequate insurance coverage at all times. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the Corporation did not have the required insurance policy in place. Management executed an insurance policy effective April 22, 2020.
SCOTT MITCHEELL ANNEX, INC. Norlina, North Carolina CORRECTIVE ACTION PLAN December 8, 2020 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Scott Mitchell Annex, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2019. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 The finding from the December 31, 2019 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS - Financial Statement Audit and Federal Award Program Audits Finding 2019-001: Recommendation: We recommend that management work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment requirement. Management's Response: We agree with Finding 2019-001 and the recommendation described in the accompanying schedule of findings and questioned costs. The prior management company did not provide adequate records and delayed the processing of the PRAC renewal. The new management company will work with HUD to resolve the delinquent deposits and replacement reserve account loan repayment required. The replacement reserve account has $71,328 as of December 31, 2019 which exceeds the HUD suggested minimum replacement reserve account balance of $1,000 per unit. Finding 2019-002: Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward. Management's Response: We agree with Finding 2019-002 and the recommendation described in the accompanying schedule of findings and questioned costs. The Corporation changed management effective May 1, 2018 and the new management will ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward. The data collection form for the year ended December 31, 2018 is in process of being submitted. Finding 2019-003: Recommendation: We recommend that management ensure the Corporation maintains adequate insurance coverage at all times. Management's Response: We agree with Finding 2019-003 and the recommendation described in the accompanying schedule of findings and questioned costs. Management executed an insurance policy effective April 22, 2020. If HUD has questions regarding this action plan, please call Michael Jameyson at (704)771-1696. Sincerely yours, Michael Jameyson, President Multifamily Select, Inc. Managing Agent
2018-003
FAC accepted this audit on January 26, 2021 — management decision was due July 26, 2021.
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