EIN: 341793124
UEI: HU24E3YK6ZC7
Data as of August 27, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 3, 2026. 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 August 3, 2026 (24 days ago).
What is a management decision? →The management company did not deposit all monthly replacement reserve deposits totaling $39,257 underfunded during the current fiscal year. Questioned Costs: $39,257. Cause: Management company failed to comply with the replacement reserve funding requirement. Effect: The underfunding of replacement reserve account by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with replacement reserve account. Management Response: See Management’s Corrective Action Plan on page 34.
Show full finding ▾Hide full finding ▴Criteria: Pursuant to the Regulatory Agreement, the Project was required to deposit $5,836 into the replacement reserve account on a monthly basis. Condition: The management company did not deposit all monthly replacement reserve deposits totaling $39,257 underfunded during the current fiscal year. Questioned Costs: $39,257. Cause: Management company failed to comply with the replacement reserve funding requirement. Effect: The underfunding of replacement reserve account by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with replacement reserve account. Management Response: See Management’s Corrective Action Plan on page 34.
Comments on Findings and Recommendations: Management concurs with the findings and auditors’ recommendations to enhance internal controls to ensure compliance with the HUD Regulatory Agreement. Action(s) Taken or Planned: 2025-001: The underfunded replacement reserve deposit will be deposited into the replacement reserve account as cash flow allows during fiscal year 2026. Furthermore, internal controls over replacement reserve funding are being strengthened to prevent future non-compliance.
FAC accepted this audit on February 3, 2026 — management decision was due August 3, 2026.
The management company did not deposit twelve monthly replacement reserve deposits totaling $70,032 during the current fiscal year. Questioned Costs: $70,032 Cause: Management company failed to comply with the replacement reserve funding requirement. Effect: The underfunding of replacement reserve account by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with replacement reserve account. Management Response: See Management’s Corrective Action Plan on page 34.
Show full finding ▾Hide full finding ▴Criteria: Pursuant to the Regulatory Agreement, the Project was required to deposit $5,836 into the replacement reserve account on a monthly basis. Condition: The management company did not deposit twelve monthly replacement reserve deposits totaling $70,032 during the current fiscal year. Questioned Costs: $70,032 Cause: Management company failed to comply with the replacement reserve funding requirement. Effect: The underfunding of replacement reserve account by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with replacement reserve account. Management Response: See Management’s Corrective Action Plan on page 34.
(a) Comments on Findings and Recommendations: Management concurs with the findings and auditors’ recommendations to enhance internal controls to ensure compliance with the HUD Regulatory Agreement. (b) Action(s) Taken or Planned: 2024-001: The underfunded replacement reserve deposit will be deposited into the replacement reserve account as cash flow allows during fiscal year 2025. Furthermore, internal controls over replacement reserve funding are being strengthened to prevent future non-compliance.
FAC accepted this audit on April 1, 2024 — management decision was due October 1, 2024.
During fiscal year 2023, the management company used operating funds in the amount of $114,300 for purposes unrelated to the Project. The management company returned the total amount of $103,000 to the operating cash account during the fiscal year. Remaining $11,300 is included in prepaid expenses as of October 31, 2023. Questioned Costs: $114,300 Cause: Management company’s oversight of Project funds did not ensure compliance with requirements related to the use of Project funds. Effect: The unauthorized use of Project funds by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement regarding use of project funds. Recommendation: Management should enhance its internal controls to ensure Project funds are only used for Project activities and expenses necessary for the ongoing operation and maintenance of the Project. Management Response: See Management's Corrective Action Plan on page 33.
Show full finding ▾Hide full finding ▴Criteria: Project funds must be used for the operation of the project, including required insurance coverage, and to make required deposits to replacement reserve and residual receipts accounts (24 CFR section 891.400(e)). Condition: During fiscal year 2023, the management company used operating funds in the amount of $114,300 for purposes unrelated to the Project. The management company returned the total amount of $103,000 to the operating cash account during the fiscal year. Remaining $11,300 is included in prepaid expenses as of October 31, 2023. Questioned Costs: $114,300 Cause: Management company’s oversight of Project funds did not ensure compliance with requirements related to the use of Project funds. Effect: The unauthorized use of Project funds by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement regarding use of project funds. Recommendation: Management should enhance its internal controls to ensure Project funds are only used for Project activities and expenses necessary for the ongoing operation and maintenance of the Project. Management Response: See Management's Corrective Action Plan on page 33.
$103,000 to the Project during the fiscal year. Remaining $11,300 included in prepaid expenses will be refunded to the Project by January 31, 2024. Furthermore, internal controls over disbursement of project funds are being strengthened to prevent future non-compliance.
The management company did not deposit three monthly replacement reserve deposits totaling $17,508 during the current fiscal year. Questioned Costs: $17,508 Cause: Management company failed to comply with the replacement reserve funding requirement. Effect: The underfunding of replacement reserve account by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with replacement reserve account. Management Response: See Management's Corrective Action Plan on page 33.
Show full finding ▾Hide full finding ▴Criteria: Pursuant to the Regulatory Agreement, the Project was required to deposit $5,836 into the replacement reserve account on a monthly basis. Condition: The management company did not deposit three monthly replacement reserve deposits totaling $17,508 during the current fiscal year. Questioned Costs: $17,508 Cause: Management company failed to comply with the replacement reserve funding requirement. Effect: The underfunding of replacement reserve account by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with replacement reserve account. Management Response: See Management's Corrective Action Plan on page 33.
The underfunded replacement reserve deposit will be deposited into the replacement reserve account by January 31, 2024. Furthermore, internal controls over replacement reserve funding are being strengthened to prevent future non-compliance.
During fiscal year 2023, the management company without approval from HUD withdrew $278,005 from the replacement reserve account. The management company returned the total amount of $278,000 to the replacement reserve account during the fiscal year. Questioned Costs: $278,005 Cause: Management company failed to comply with the replacement reserve disbursement requirement. Effect: The unauthorized withdrawal of funds from the replacement reserve account by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with replacement reserve account. Management Response: See Management's Corrective Action Plan on page 33.
Show full finding ▾Hide full finding ▴Criteria: All disbursements from the replacement reserve account must be approved by HUD (24 CFR section 891.405). Condition: During fiscal year 2023, the management company without approval from HUD withdrew $278,005 from the replacement reserve account. The management company returned the total amount of $278,000 to the replacement reserve account during the fiscal year. Questioned Costs: $278,005 Cause: Management company failed to comply with the replacement reserve disbursement requirement. Effect: The unauthorized withdrawal of funds from the replacement reserve account by the management company resulted in the Project not to be in full compliance with its Regulatory Agreement. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with replacement reserve account. Management Response: See Management's Corrective Action Plan on page 33.
Unauthorized withdrawal from the replacement reserve was corrected during the fiscal year. However, internal controls over replacement reserve withdrawals are being strengthened to prevent future non-compliance.
Surplus cash calculated in the amount of $5,966 as of October 31, 2022 was required to deposited by the management company within 90 days of the fiscal year end. Questioned Costs: $5,966 Cause: Management company failed to comply with the required surplus cash deposit during the fiscal year. Effect: The Project was not in full compliance with its Regulatory Agreement regarding surplus cash deposit into residual receipts account. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with residual receipts account. Management Response: See Management's Corrective Action Plan on page 33.
Show full finding ▾Hide full finding ▴Criteria:Surplus cash calculated as of the end of the fiscal year is required to be deposited into the residual receipts account within 90 days following the end of the fiscal year. Condition: Surplus cash calculated in the amount of $5,966 as of October 31, 2022 was required to deposited by the management company within 90 days of the fiscal year end. Questioned Costs: $5,966 Cause: Management company failed to comply with the required surplus cash deposit during the fiscal year. Effect: The Project was not in full compliance with its Regulatory Agreement regarding surplus cash deposit into residual receipts account. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with residual receipts account. Management Response: See Management's Corrective Action Plan on page 33.
Required deposit of surplus cash in the amount of $5,966 into the residual receipts accounts will be made by January 31, 2024. Furthermore, internal controls over residual receipts funding are being strengthened to prevent future non-compliance.
FAC accepted this audit on July 30, 2023 — management decision was due January 30, 2024.
In connection with applying for the conversion of assistance under the Rental Assistance Demonstration (RAD), the Organization filed a certificate of merger on March 14, 2022 with the Ohio Secretary of State to effectively merge the operations of Alexia Manor Housing Corporation (owner of the Project) with another not-for-profit entity controlled by the same Board of Trustees. HUD has not issued an approval of the transfer of physical assets in connection with the RAD transaction. Questioned Costs: None Cause: In anticipation of a RAD for PRAC conversion of the existing PRAC contract, the Board of Trustees approved a plan to begin the process with HUD. The certificate of merger was filed prior to securing consent from HUD. Effect: The Project was not in full compliance with its Regulatory Agreement regarding unauthorized change in ownership. Recommendation: Management should continue to work with HUD to obtain an approval of the RAD conversion and written consent of the merger of operations of Alexia Manor Corporation with Lourexis, Inc.
Show full finding ▾Hide full finding ▴2022-001 Criteria: Owners shall not, without the prior written consent of HUD, convey, assign, transfer, dispose of, or encumber any of the mortgaged property or permit the conveyance, transfer, or encumbrance of such property. Condition: In connection with applying for the conversion of assistance under the Rental Assistance Demonstration (RAD), the Organization filed a certificate of merger on March 14, 2022 with the Ohio Secretary of State to effectively merge the operations of Alexia Manor Housing Corporation (owner of the Project) with another not-for-profit entity controlled by the same Board of Trustees. HUD has not issued an approval of the transfer of physical assets in connection with the RAD transaction. Questioned Costs: None Cause: In anticipation of a RAD for PRAC conversion of the existing PRAC contract, the Board of Trustees approved a plan to begin the process with HUD. The certificate of merger was filed prior to securing consent from HUD. Effect: The Project was not in full compliance with its Regulatory Agreement regarding unauthorized change in ownership. Recommendation: Management should continue to work with HUD to obtain an approval of the RAD conversion and written consent of the merger of operations of Alexia Manor Corporation with Lourexis, Inc.
2022-001 (a) Comments on Findings and Recommendations Corporation concurs with the finding and auditors? recommendation to enhance internal controls to ensure compliance with the HUD Regulatory Agreement. (b) Action(s) Taken or Planned Corporation is cognizant of the HUD requirements related to the change in ownership. The filing of the certificate of merger with the Ohio Secretary of State triggering unauthorized change in ownership was an integral step in the conversion of the entity?s HUD funding, as described below. As HUD is aware, Alexia Manor Housing Corporation (?Alexia Manor?, HUD project name ?Lourexis II?) is in the process of applying for the conversion of assistance under the Rental Assistance Demonstration (RAD) pursuant to PIH Notice 2012-32. Alexia is a sister entity to Lourexis, Inc. (?Lourexis?) and both are federal tax-exempt entities with the same sponsor and common boards and management. An element of the overall RAD conversion plan is the merging of Alexia Manor into Lourexis, which has already taken place and is recognized as an appropriate step in the process per our legal counsel?s January 25, 2023 discussion with Vicky Longosz in HUD?s Washington, D.C. Office of General Counsel. HUD?s Asset Resolution Office was notified of same in a telephone conversation with Corporation?s legal counsel on April 19, 2023. Corporation is working with legal counsel to prepare the documents necessary for the RAD conversion and obtaining HUD consent for transfer of property.
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