EIN: 363132762
UEI: NJPTUV91K285
Data as of August 26, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 16, 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 September 16, 2026 (21 days from today).
What is a management decision? →As a result of our audit, we noted that for the period January 1, 2023, through August 31, 2023, the general ledger (GL) expenses do not include vendor names. This is an internal control deficiency related to documentation and completeness of the audit trail. This deficiency can fall into one of these categories: 1. Documentation Deficiency The GL lacks sufficient detail to identify the source of transactions. Without vendor names, you cannot easily trace expenses, verify legitimacy, or perform reconciliation. 2. Audit Trail Deficiency Auditors expect transactions to be traceable from the financial statements back to the supporting documents. Missing vendor names breaks that trail.
Show full finding ▾Hide full finding ▴As a result of our audit, we noted that for the period January 1, 2023, through August 31, 2023, the general ledger (GL) expenses do not include vendor names. This is an internal control deficiency related to documentation and completeness of the audit trail. This deficiency can fall into one of these categories: 1. Documentation Deficiency The GL lacks sufficient detail to identify the source of transactions. Without vendor names, you cannot easily trace expenses, verify legitimacy, or perform reconciliation. 2. Audit Trail Deficiency Auditors expect transactions to be traceable from the financial statements back to the supporting documents. Missing vendor names breaks that trail.
The Project has procedures in place to record transactions in the Financial Statements that identify sources and are traceable to assigned accounts. The Project will ensure that all transactions are appropriately posted. The Project transitioned to a new accounting software application during the months of January 2023 through August 2023 and processed financial transactions in parallel software applications during the period. Transactions were recorded in batch into the new software application and were supported by a manual disbursement log, present for the audit.
The Project’s books and records are currently maintained on the cash basis of accounting and accrual adjustments are performed at year-end to convert the cash basis of accounting to the accrual basis of accounting. The accrual basis is the method of accounting where revenues are recognized when earned and expenses are recognized when incurred. We understand that maintaining the general ledger on the accrual basis of accounting is more difficult than using the cash basis. However, the accrual basis provides more meaningful financial information to management and complies with generally accepted accounting principles. Failure to maintain the Project’s general ledger on the accrual basis of accounting distorts the interim financial statements and may lead to critical financial decisions being made on erroneous data.
Show full finding ▾Hide full finding ▴The Project’s books and records are currently maintained on the cash basis of accounting and accrual adjustments are performed at year-end to convert the cash basis of accounting to the accrual basis of accounting. The accrual basis is the method of accounting where revenues are recognized when earned and expenses are recognized when incurred. We understand that maintaining the general ledger on the accrual basis of accounting is more difficult than using the cash basis. However, the accrual basis provides more meaningful financial information to management and complies with generally accepted accounting principles. Failure to maintain the Project’s general ledger on the accrual basis of accounting distorts the interim financial statements and may lead to critical financial decisions being made on erroneous data.
The Project has procedures in place to record vendor transactions in the period incurred. The Project will maintain its financial statements on the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (GAAP). The Project will utilize the accounts payable module to record invoices and obligations as incurred and will establish recurring and standard journal entries for routine accruals as applicable.
2022-002
On June 13, 2020, an SBA Economic Injury Disaster Loan was initiated without the knowledge and authorization of those charged with governance. The loan has been identified and recorded in the financial statements; however, HUD did not grant permission to enter into the agreement. We were unable to verify expenditures; however, they were unauthorized.
Show full finding ▾Hide full finding ▴On June 13, 2020, an SBA Economic Injury Disaster Loan was initiated without the knowledge and authorization of those charged with governance. The loan has been identified and recorded in the financial statements; however, HUD did not grant permission to enter into the agreement. We were unable to verify expenditures; however, they were unauthorized.
The Project will contact HUD and SBA to discuss favorable remedies to resolve the issues. Procedures related to authorization have been enhanced to ensure that transactions entered into by the Project are allowable.
Project funds were used to provide personal benefits for certain board of directors’ members and other unallowable and unsupported expenditures.
Show full finding ▾Hide full finding ▴Project funds were used to provide personal benefits for certain board of directors’ members and other unallowable and unsupported expenditures.
The Project will contact HUD to discuss favorable remedies to resolve the issues. Procedures related to authorization have been enhanced to ensure that transactions entered into by the Project are allowable. The Project will ensure that all parties that authorize and process transactions have a working knowledge of allowable vs unallowable costs.
During the year, unauthorized payroll payments were made to an employee. The unapproved payments were disbursed using Project funds.
Show full finding ▾Hide full finding ▴During the year, unauthorized payroll payments were made to an employee. The unapproved payments were disbursed using Project funds.
The Project has ensured that internal controls are being followed. It has trained new staff to process payroll in accordance with its procedures. Payroll is now transmitted by an outside management agent.
The Project is covered by a $151,000 fidelity bond and fidelity insurance. The Project fidelity bond coverage for the value of two months of the gross potential income should be $207,366 (monthly gross potential income $103,683 X 2 months). The fidelity bond coverage has a shortage of $56,366.
Show full finding ▾Hide full finding ▴The Project is covered by a $151,000 fidelity bond and fidelity insurance. The Project fidelity bond coverage for the value of two months of the gross potential income should be $207,366 (monthly gross potential income $103,683 X 2 months). The fidelity bond coverage has a shortage of $56,366.
The Project will implement a procedure to review its coverage annually to align with the grantor contract notification of gross rent income projection. The current year’s insurance policy will be adjusted to reflect appropriate coverage. The Project reviewed its policies in successive years to increase coverage. As a result, coverage was increased to $151,000 in January 2024 and the required coverage (two times gross revenue total) was met in July 2024.
2022-005
An Enterprise Income Verification (EIV) was not performed within 90 days of the date of move-in for the following tenants:
Show full finding ▾Hide full finding ▴An Enterprise Income Verification (EIV) was not performed within 90 days of the date of move-in for the following tenants:
The Project has procedures in place to sign into the EIV System monthly and print the reports of: • Multiple subsidy • Identity verification • Deceased tenants • New hires
2022-006
Findings were noted during the testing of certification for tenants as follows: A. Rochelle Dyer, Unit# 206, Move-In Date: 2/01/2023: 1. The Model Lease does not state the contract rent of $1,819.00 and Tenant Assistance Payment of $1,584.00. B. Vertrezal Beasley, Unit #501, Date of Recertification 9/18/2023: 1. The Model Lease does not state the contract rent of $1,819.00 and Tenant Assistance Payment of $1,585.00. 2. The Project did not provide the Social Security Annual letter for verification of the annual income of $11,820.00.
Show full finding ▾Hide full finding ▴Findings were noted during the testing of certification for tenants as follows: A. Rochelle Dyer, Unit# 206, Move-In Date: 2/01/2023: 1. The Model Lease does not state the contract rent of $1,819.00 and Tenant Assistance Payment of $1,584.00. B. Vertrezal Beasley, Unit #501, Date of Recertification 9/18/2023: 1. The Model Lease does not state the contract rent of $1,819.00 and Tenant Assistance Payment of $1,585.00. 2. The Project did not provide the Social Security Annual letter for verification of the annual income of $11,820.00.
The Project has procedures in place to certify prospective tenants and to recertify existing tenant eligibility in compliance with HUD requirements. Required documentation is collected and processed in the property management system. The documentation is retained in related files as applicable. The Project will ensure that information is documented in the appropriate system, documents are accurately generated, and that all supporting documentation is retained in related files as appropriate.
During the testing of the move-out of William Payne, Unit# 102, Move-out Date 1/27/2023, the move-out inspection was not performed.
Show full finding ▾Hide full finding ▴During the testing of the move-out of William Payne, Unit# 102, Move-out Date 1/27/2023, the move-out inspection was not performed.
The Project has procedures in place for move-out inspections in compliance with HUD requirements. Information collected is documented, signed by the tenant and Project Manager, and retained in file as appropriate. The Project will ensure that procedures are followed and that supporting documentation is filed appropriately.
During our testing of cash disbursements, we noted the following: 1. Vendors’ invoices were unavailable for examination purposes. 12 (twelve) exceptions were noted 2. Vendor invoices were not approved by an authorized individual for payment. 31 (thirty-one) exceptions noted. 3. Vendor names could not be traced to the general ledger. 38 (thirty-eight) exceptions noted. 4. Cancelled checks were unavailable for examination purposes. 4 (Four) exceptions were noted.
Show full finding ▾Hide full finding ▴During our testing of cash disbursements, we noted the following: 1. Vendors’ invoices were unavailable for examination purposes. 12 (twelve) exceptions were noted 2. Vendor invoices were not approved by an authorized individual for payment. 31 (thirty-one) exceptions noted. 3. Vendor names could not be traced to the general ledger. 38 (thirty-eight) exceptions noted. 4. Cancelled checks were unavailable for examination purposes. 4 (Four) exceptions were noted.
The Project has procedures in place to record transactions in accordance with HUD requirements. The Project will ensure that all procedures are followed to authorize, maintain, accurately record, and cancel vendor invoices.
2022-009
During our testing of the entity’s compliance with applicable federal laws and regulations, we noted that the entity did not file required Form 1099 NEC information returns for certain non employee compensation payments of $600 or more made during the fiscal year. The Project also did not furnish the required recipient copies by the statutory deadline
Show full finding ▾Hide full finding ▴During our testing of the entity’s compliance with applicable federal laws and regulations, we noted that the entity did not file required Form 1099 NEC information returns for certain non employee compensation payments of $600 or more made during the fiscal year. The Project also did not furnish the required recipient copies by the statutory deadline
The Project will implement procedures to ensure year-end review of vendor transactions that require Form 1099 filings. The Project will prepare and file forms in compliance with governmental laws and regulations.
During our testing of the Project's accrued payroll & taxes for the year ended December 31, 2023, for the gross payroll of $10,370.46 and payroll taxes of $793.36, we noted that payroll was processed at net pay on 1/4/2024 and that employees were given manual payroll checks. Payroll was not transmitted to ADP, and payroll tax deposits were not made. Therefore, the 1/04/2024 payroll is unreported in the 1st Quarter 2024 filing of required Federal and State Employment/Unemployment tax returns.
Show full finding ▾Hide full finding ▴During our testing of the Project's accrued payroll & taxes for the year ended December 31, 2023, for the gross payroll of $10,370.46 and payroll taxes of $793.36, we noted that payroll was processed at net pay on 1/4/2024 and that employees were given manual payroll checks. Payroll was not transmitted to ADP, and payroll tax deposits were not made. Therefore, the 1/04/2024 payroll is unreported in the 1st Quarter 2024 filing of required Federal and State Employment/Unemployment tax returns.
The Project has procedures in place to process payroll. The Project will review procedures to ensure ● filing deadlines are scheduled for each operating year in advance ● designated individuals are responsible for preparing, reviewing, and transmitting payroll data to the outside payroll agent for processing ● outside payroll agent processes payroll and payroll tax returns properly and timely ● payroll obligations are paid timely ● payroll reports are timely received for each payroll period ● reconciliations are prepared each period
FAC accepted this audit on January 19, 2024 — management decision was due July 19, 2024.
As a result of our audit, we proposed thirty-seven (37) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments proposed were material to the financial statements. Adjustments were necessary for basis areas such as prepaid expense, replacement reserve, insurance escrow MIP escrow, fixed assets, accumulated depreciation, operating lease right-of-use asset, accounts payable, accrued expense, due to owner, accrued management fee, accrued mortgage interest, mortgage payable, right -of-use operating lease liability, revenue, and expenses.
Show full finding ▾Hide full finding ▴As a result of our audit, we proposed thirty-seven (37) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments proposed were material to the financial statements. Adjustments were necessary for basis areas such as prepaid expense, replacement reserve, insurance escrow MIP escrow, fixed assets, accumulated depreciation, operating lease right-of-use asset, accounts payable, accrued expense, due to owner, accrued management fee, accrued mortgage interest, mortgage payable, right -of-use operating lease liability, revenue, and expenses.
The Project has hired an outside accountant who will ensure that books and records are fairly presented.
The Project’s general ledger is currently maintained on the cash basis of accounting and accrual adjustments are performed at year-end to convert the cash basis of accounting to the accrual basis of accounting. The accrual basis is the method of accounting where revenues are recognized when earned and expenses are recognized when incurred. We understand that maintaining the general ledger on the accrual basis of accounting is more difficult than using the cash basis. However, the accrual basis provides more meaningful financial information to management and complies with generally accepted accounting principles. Failure to maintain the Project’s general ledger on the accrual basis of accounting distorts the interim financial statements and may lead to critical financial decisions being made on erroneous data. This is a repeated finding due to Gross Potential Rent not being recorded on an accrual basis of accounting.
Show full finding ▾Hide full finding ▴The Project’s general ledger is currently maintained on the cash basis of accounting and accrual adjustments are performed at year-end to convert the cash basis of accounting to the accrual basis of accounting. The accrual basis is the method of accounting where revenues are recognized when earned and expenses are recognized when incurred. We understand that maintaining the general ledger on the accrual basis of accounting is more difficult than using the cash basis. However, the accrual basis provides more meaningful financial information to management and complies with generally accepted accounting principles. Failure to maintain the Project’s general ledger on the accrual basis of accounting distorts the interim financial statements and may lead to critical financial decisions being made on erroneous data. This is a repeated finding due to Gross Potential Rent not being recorded on an accrual basis of accounting.
The Project has hired an outside accountant who will ensure that books and records are fairly presented.
The Project did not provide the Resident Balance By Fiscal Period-December 31, 2022 to reconcile to the 1130 Tenant Receivable, 1130 Accounts Receivable HUD, 2210 Prepaid Revenue, and 2191 Tenant Deposit Held in Trust (Contra). The Resident Balance by Fiscal Period is the subsidiary ledger for the accounts noted. This finding is a repeated finding from prior year
Show full finding ▾Hide full finding ▴The Project did not provide the Resident Balance By Fiscal Period-December 31, 2022 to reconcile to the 1130 Tenant Receivable, 1130 Accounts Receivable HUD, 2210 Prepaid Revenue, and 2191 Tenant Deposit Held in Trust (Contra). The Resident Balance by Fiscal Period is the subsidiary ledger for the accounts noted. This finding is a repeated finding from prior year
The Project has hired an outside accountant who will ensure that Tenant Receivable, HUD Receivable, Tenant Security Deposits, and Prepaid Revenue are properly reconciled with monthly financial statements.
The Management Agent fees are on a paid basis on the Yield CAP -$48,399. The 4.20% of residential income collected fee is noted in the Project Owner’s Certification of Owner-Managed Multifamily Housing Projects dated 3/15/2021. The Yield CAP of $73 per unit is established so the Management Fee basis on collections does not exceed the Yield CAP. The Management Agent does not attach to monthly payment of the Management Fee a Schedule of Resident Income Collected to compute to the Management Fee to support the payment of the Management Fee. This finding is a repeated finding from prior year.
Show full finding ▾Hide full finding ▴The Management Agent fees are on a paid basis on the Yield CAP -$48,399. The 4.20% of residential income collected fee is noted in the Project Owner’s Certification of Owner-Managed Multifamily Housing Projects dated 3/15/2021. The Yield CAP of $73 per unit is established so the Management Fee basis on collections does not exceed the Yield CAP. The Management Agent does not attach to monthly payment of the Management Fee a Schedule of Resident Income Collected to compute to the Management Fee to support the payment of the Management Fee. This finding is a repeated finding from prior year.
For the Management Fee monthly payment, a schedule of monthly residential income collected times the management fee percentage to support payment.
2021-010
The Project did not obtain fidelity bond coverage for the value of two months of the gross potential income of $202,350 (monthly gross potential income $101,175 X 2 months). This finding is a repeated finding from the prior year.
Show full finding ▾Hide full finding ▴The Project did not obtain fidelity bond coverage for the value of two months of the gross potential income of $202,350 (monthly gross potential income $101,175 X 2 months). This finding is a repeated finding from the prior year.
The Project will obtain fidelity bond coverage for two months’ gross potential income.
2021-009
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in from the following tenants:
Show full finding ▾Hide full finding ▴The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in from the following tenants:
The Project will follow the HUD directive in obtaining the EIV within 90 days of move-in.
The following tenant’s bank account was not verified:
Show full finding ▾Hide full finding ▴The following tenant’s bank account was not verified:
The Project will follow bank account verification procedures.
The following tenant’s Direct Express Card for Social Security was not verified by the Project:
Show full finding ▾Hide full finding ▴The following tenant’s Direct Express Card for Social Security was not verified by the Project:
The Project will follow Direct Express Debit Card verification procedures.
During our testing of cash disbursements and search for unrecorded liabilities, we noted the following: 1. The vendor's invoice is unavailable for examination purposes. 11 (eleven) exceptions were noted. 2. Invoice recording in the incorrect accounting period. 40 (forty) exceptions noted. 3. Cancelled check was unavailable for examination purposes. 2 (two) exceptions were noted.
Show full finding ▾Hide full finding ▴During our testing of cash disbursements and search for unrecorded liabilities, we noted the following: 1. The vendor's invoice is unavailable for examination purposes. 11 (eleven) exceptions were noted. 2. Invoice recording in the incorrect accounting period. 40 (forty) exceptions noted. 3. Cancelled check was unavailable for examination purposes. 2 (two) exceptions were noted.
The Project will follow HUD Internal Controls Over Cash Disbursements.
FAC accepted this audit on March 6, 2023 — management decision was due September 6, 2023.
The Project could not provide Tenant Accounts Receivable summary analysis as of December 31, 2021.
Show full finding ▾Hide full finding ▴The Project could not provide Tenant Accounts Receivable summary analysis as of December 31, 2021.
2021-001: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195 Special Testing and Provisions; Contract Period-Year Ended December 31, 2021-Tenants Account Receivable Unrecorded Corrective Action Plan: The Project will properly utilize its Rent Roll System to record the Tenants Receivable on a monthly basis to agree to the monthly financial statements. Responsible party: Shannon Washington, Property Management Planned completion date for corrective action plan: June 30, 2023
During our testing of Gross Potential Rent, we noted that the Project does not record Rent Revenue at its Gross Potential, but only the amount of rent revenue collected. Therefore, vacancy losses were not recorded on a monthly basis to reflect revenue lost through the vacancy of an apartment unit. An audit adjustment entry for $10,529.21 was recorded to correct the Gross Potential Rent.
Show full finding ▾Hide full finding ▴During our testing of Gross Potential Rent, we noted that the Project does not record Rent Revenue at its Gross Potential, but only the amount of rent revenue collected. Therefore, vacancy losses were not recorded on a monthly basis to reflect revenue lost through the vacancy of an apartment unit. An audit adjustment entry for $10,529.21 was recorded to correct the Gross Potential Rent.
2021-002: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195 Special Testing and Provisions; Contract Period-Year Ended December 31, 2021-Gross Potential Rent Not Properly Recorded Corrective Action Plan: The Project will properly utilize its Rent Roll System to record Gross Potential Rents on a monthly basis. Responsible party: Shannon Washington, Property Manager Planned completion date for corrective action plan: June 30, 2023
During our test of liabilities, we noted that the Project could not provide a schedule of Prepaid Rent for the current year.
Show full finding ▾Hide full finding ▴During our test of liabilities, we noted that the Project could not provide a schedule of Prepaid Rent for the current year.
2021-003: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195 Special Testing and Provisions; Contract Period-Year Ended October 31, 2021-Prepaid Revenue Unrecorded. Corrective Action Plan: The Project will properly utilize its Rent Roll System to record Prepaid Rents. Responsible party: Shannon Washington, Property Manager Planned completion date for corrective action plan: June 30, 2023
Per the Federal Audit Clearinghouse Search for Single Audits, Urban Development Corporation?s prior years? Data Collections and Audit Reports have not been reported and/or submitted to the Federal Audit Clearinghouse. Therefore, the auditee does not qualify as a low-risk auditee.
Show full finding ▾Hide full finding ▴Per the Federal Audit Clearinghouse Search for Single Audits, Urban Development Corporation?s prior years? Data Collections and Audit Reports have not been reported and/or submitted to the Federal Audit Clearinghouse. Therefore, the auditee does not qualify as a low-risk auditee.
2021-004: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195 Special Testing and Provisions; Contract Period-Year Ended December 31, 2021-Data Collection and Audit Report not submitted to the Federal Audit Clearinghouse, Corrective Action Plan: The Corporation will contact the prior year?s auditors to prepare prior year?s Data Collections and Upload the prior year?s Audit Reports to the Federal Audit Clearinghouse. Responsible party: Alvin Robinson-President. Planned completion date for corrective action plan: June 30, 2023
All tenants selected for Move-In Testing were not a waiting list.
Show full finding ▾Hide full finding ▴All tenants selected for Move-In Testing were not a waiting list.
2021-005: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195 Eligibility; Contract Period-Year Ended December 31, 2021-No Waiting List Corrective Action Plan: The Project will properly utilize its Rent Roll System for placing approved applicants on a waiting list per the Tenant Selection Plan. Responsible party: Shannon Washington, Property Manager Planned completion date for corrective action plan: June 30, 2023
During our Testing of Rejected Applicant, the Project did not provide a listing of rejected (denied) applicants for the period 1/01/2021 through 12/31/2021 for testing.
Show full finding ▾Hide full finding ▴During our Testing of Rejected Applicant, the Project did not provide a listing of rejected (denied) applicants for the period 1/01/2021 through 12/31/2021 for testing.
2021-006: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195 Eligibility; Contract Period-Year Ended December 31, 2021-Unrecorded Operating Rejected Applicant Listing Corrective Action Plan: The Project will properly utilize its Rent Roll System to develop the Reject Applicant Listing and files per the Tenant Selection Plan. Responsible party: Shannon Washington, Property Manager Planned completion date for corrective action plan: June 30, 2023
During the Testing of Work Orders, the Project could not provide a Detail Schedule for Work Orders for the period January 1, 2021 through December 31, 2021 for testing.
Show full finding ▾Hide full finding ▴During the Testing of Work Orders, the Project could not provide a Detail Schedule for Work Orders for the period January 1, 2021 through December 31, 2021 for testing.
2021-007: Section 8 Housing Assistance Payments-CFDA 14.195 Special Tests and Provisions - Contract Period Ended December 31, 2021?Work Orders Corrective Action Plan: The Project will properly utilize its Rent Roll System to develop the Work Order process system. Responsible party: Shannon Washington, Property Manager Planned completion date for corrective action plan: June 30, 2023
During our testing of the Management Function for insurance coverage, we noted that no annual insurance premium payment was disbursed from the Insurance Escrow account that is held by Midland State Bank, the mortgage company for the period January 1. 2021 through December 31, 2021. "See Schedule of Findings and Questioned Costs for table"
Show full finding ▾Hide full finding ▴During our testing of the Management Function for insurance coverage, we noted that no annual insurance premium payment was disbursed from the Insurance Escrow account that is held by Midland State Bank, the mortgage company for the period January 1. 2021 through December 31, 2021. "See Schedule of Findings and Questioned Costs for table"
2021-008: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195 Special Testing and Provisions; Contract Period-Year Ended December 31, 2021-No Property and Liability Coverage Corrective Action Plan: The Project will have policy and procedure in place to determine that Midland State Bank will receive the annual insurance premium of the Property and Liability Insurance to be paid out of the Insurance Escrow Account. Responsible party: Shannon Washington, Property Manager Planned completion date for corrective action plan: January 31, 2023.
During the testing of fidelity bond insurance coverage, we noted that the Project fidelity bond coverage was only $100,000. The Project fidelity bond was not at the value of two months of the gross potential income of $198,0018 (monthly gross potential income $99,009 X 2 months).
Show full finding ▾Hide full finding ▴During the testing of fidelity bond insurance coverage, we noted that the Project fidelity bond coverage was only $100,000. The Project fidelity bond was not at the value of two months of the gross potential income of $198,0018 (monthly gross potential income $99,009 X 2 months).
2021-009: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195 Special Testing and Provisions; Contract Period-Year Ended December 31, 2021-No Fidelity Bond Coverage Corrective Action Plan: The Project and Corporation will determine that fidelity bond coverage for twice gross potential rent is noted on the annual fidelity bond insurance coverage, Responsible party: Shannon Washington, Property Manager Planned completion date for corrective action plan: January 31, 2023.
Management Agent fees were paid basis upon Yield that is held at a capped of $73 PUPM as opposed to 4.20 % of residential collected noted on the Project Owner?s Certification of Owner-Managed Multifamily Housing Projects dated March 15, 2021. The Yield CAP is established so the Management Fee basis on collections does not exceed the Yield CAP. The Project does not attach to the monthly payment of the Management Fee a Schedule of Resident Income Collected to compute the Management Fee to support the payment of the Management Fee. However, Management Fee per the general ledger exceeds Computed Management Fee by only $84.00.
Show full finding ▾Hide full finding ▴Management Agent fees were paid basis upon Yield that is held at a capped of $73 PUPM as opposed to 4.20 % of residential collected noted on the Project Owner?s Certification of Owner-Managed Multifamily Housing Projects dated March 15, 2021. The Yield CAP is established so the Management Fee basis on collections does not exceed the Yield CAP. The Project does not attach to the monthly payment of the Management Fee a Schedule of Resident Income Collected to compute the Management Fee to support the payment of the Management Fee. However, Management Fee per the general ledger exceeds Computed Management Fee by only $84.00.
2021-010: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Project CFDA 14.155 Allowable Cost/Cost Principles-Contract Period Ended December 31, 2021 ? Computation of Management Fees Corrective Action Plan: On a monthly basis, the Project will prepare the monthly residential income collections schedule to compute the monthly Management Fee payment basis on the 4.20% of the residential income collected. Responsible party: Shannon Washington, Property Manager Planned completion date for corrective action plan: January 31, 2023
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