EIN: 611248979
UEI: HJAYKG42K7V8
Audited by: Deming, Malone, Livesay & Ostroff PSC
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on April 22, 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 October 22, 2026 (53 days from today).
What is a management decision? →The Organization did not maintain copies of notices of recertification or all supporting documentation, such as the EIV reports, in the tenant files and did not complete the recertification process in a timely manner. In one instance, tenant was not provided 30-day notice of rent increase. Cause of condition: The Organization did not pursue tenant compliance after initial recertification notices were mailed to the tenants. Effect of condition: Annual recertifications are not completed on time. Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of the annual recertification process and that the process is completed by the tenants certification anniversary date. Additionally, tenant files should be reviewed to ensure all supporting documentation is included. Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure tenant recertifications are completed in a timely manner and supporting documentation is maintained in tenant files in accordance with HUD guidelines.
Show full finding ▾Hide full finding ▴Criteria: The Organization is required to perform an annual recertification of all tenants by the tenant’s recertification anniversary date. The Organization is required to inform tenants, through written notice, of their responsibility to provide information needed to complete the recertification process and copies of these notices should be maintained in the tenant files, along with required supporting documentation. Tenant must be provided 30-day notice of an increase in tenant portion of rent upon completion of recertification procedures. Statement of Condition: The Organization did not maintain copies of notices of recertification or all supporting documentation, such as the EIV reports, in the tenant files and did not complete the recertification process in a timely manner. In one instance, tenant was not provided 30-day notice of rent increase. Cause of condition: The Organization did not pursue tenant compliance after initial recertification notices were mailed to the tenants. Effect of condition: Annual recertifications are not completed on time. Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of the annual recertification process and that the process is completed by the tenants certification anniversary date. Additionally, tenant files should be reviewed to ensure all supporting documentation is included. Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure tenant recertifications are completed in a timely manner and supporting documentation is maintained in tenant files in accordance with HUD guidelines.
Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of the annual recertification process and that the process is completed by the tenants certification anniversary date. Additionally, tenant files should be reviewed to ensure all supporting documentation is included. Action Taken: The management of Cain Center Apartments, Inc. dba Brown-Mackinnon Apartments accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will provide timely notice of annual recertifications to all tenants in accordance with HUD guidelines to ensure process is completed on time and will ensure all supporting documentation is maintained in tenant files.
2024-002
The Organization did not use the appropriate date when processing Form 50059-A for a deceased tenant. The resulting overpayment of subsidy was not repaid to HUD. Cause of Condition: The Organization used the date of unit vacancy as the effective move-out date. The Organization was not aware that tenant had passed away until months after date of death. Effect of Condition: Over three months of subsidy were received on behalf of the tenant. Recommendation: The design of the current controls should be reviewed to ensure proper vacancy dates are utilized on the monthly vouchers when a move out is processed. The overpayment of subsidy received should be repaid to HUD. View of Responsible Officials: Management agrees with the finding and will implement procedures to ensure that all move out adjustments processed are utilizing the proper vacancy date. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billing.
Show full finding ▾Hide full finding ▴Criteria: The Organization is required to use Form 50059-A to process a move out in the event of a deceased tenant, retroactive to the earlier of 14 days after the tenant’s death or the date the unit was vacated. Any overpayment of subsidy that was paid on the behalf of the deceased tenant must be repaid to HUD. Statement of Condition: The Organization did not use the appropriate date when processing Form 50059-A for a deceased tenant. The resulting overpayment of subsidy was not repaid to HUD. Cause of Condition: The Organization used the date of unit vacancy as the effective move-out date. The Organization was not aware that tenant had passed away until months after date of death. Effect of Condition: Over three months of subsidy were received on behalf of the tenant. Recommendation: The design of the current controls should be reviewed to ensure proper vacancy dates are utilized on the monthly vouchers when a move out is processed. The overpayment of subsidy received should be repaid to HUD. View of Responsible Officials: Management agrees with the finding and will implement procedures to ensure that all move out adjustments processed are utilizing the proper vacancy date. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billing.
Recommendation: The design of the current controls should be reviewed to ensure proper vacancy dates are utilized on the monthly vouchers when a move out is processed. The overpayment of subsidy received should be repaid to HUD. Action Taken: The management of Cain Center Apartments, Inc. dba Brown-Mackinnon Apartments accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that all move out adjustments processed utilize the proper vacancy date. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billing.
The Organization withdrew funds from the security deposit account in the current year leaving the amount of cash in the security deposit account lower than the total liability for current tenants’ security deposits. Cause of condition: The Organization does not keep an active listing to track the payment of tenant deposits and allocated interest earned on account. Effect of condition: Security deposit bank account is underfunded. Recommendation: The design of the current controls should be reviewed to ensure all tenant security deposits are properly tracked. Management should make transfers to the security deposit account to cover all deposits currently on hand. Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure proper tracking of security deposits and will make the necessary transfer to fund the security deposit account.
Show full finding ▾Hide full finding ▴Criteria: The Organization is required to hold all tenant security deposits in a separate interest bearing account. Statement of Condition: The Organization withdrew funds from the security deposit account in the current year leaving the amount of cash in the security deposit account lower than the total liability for current tenants’ security deposits. Cause of condition: The Organization does not keep an active listing to track the payment of tenant deposits and allocated interest earned on account. Effect of condition: Security deposit bank account is underfunded. Recommendation: The design of the current controls should be reviewed to ensure all tenant security deposits are properly tracked. Management should make transfers to the security deposit account to cover all deposits currently on hand. Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure proper tracking of security deposits and will make the necessary transfer to fund the security deposit account.
Recommendation: The design of the current controls should be reviewed to ensure all tenant security deposits are properly tracked. Management should make transfers to the security deposit account to cover all deposits currently on hand. Action Taken: The management of Cain Center Apartments, Inc. dba Brown-Mackinnon Apartments accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that all move out adjustments processed utilize the proper vacancy date. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billing.
FAC accepted this audit on April 22, 2026 — management decision was due October 22, 2026.
The Organization did not maintain signed annual recertification forms for the tenant files tested during the audit and did not maintain all of the information such as the EIV reports in the files to support the data used in its preparation. Cause of condition: The Organization did not pursue tenant compliance after letters for recertification were mailed to the tenants. Effect of condition: There is no evidence of a tenant’s eligibility for rent assistance maintained by the Organization in the tenant file. Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenants should sign the recertification form. In addition, management should review all files and report any discrepancies to HUD in a timely manner. Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure tenant recertifications are documented in accordance with HUD guidelines and that proper documentation is maintained within the tenant files.
Show full finding ▾Hide full finding ▴Criteria: The Organization is required to perform an annual recertification of all tenants, which requires verifying tenant income and documenting eligibility with HUD Form 50059. Tenants are required to sign the form, and it must be maintained within the Organization’s tenant file, along with supporting documentation. Statement of Condition: The Organization did not maintain signed annual recertification forms for the tenant files tested during the audit and did not maintain all of the information such as the EIV reports in the files to support the data used in its preparation. Cause of condition: The Organization did not pursue tenant compliance after letters for recertification were mailed to the tenants. Effect of condition: There is no evidence of a tenant’s eligibility for rent assistance maintained by the Organization in the tenant file. Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenants should sign the recertification form. In addition, management should review all files and report any discrepancies to HUD in a timely manner. Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure tenant recertifications are documented in accordance with HUD guidelines and that proper documentation is maintained within the tenant files.
Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenants should sign the recertification form. In addition, management should review all files and report any discrepancies to HUD in a timely manner. Action Taken: The management of Cain Center Apartments, Inc. dba Brown-Mackinnon Apartments accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will complete and document all annual recertifications, will maintain all documentation in tenant files to support the 50059 forms, will review all tenant files and report any discrepancies to HUD, and will make the necessary adjustments to tenant rent and rental subsidy calculations on the 50059 forms as soon as possible.
2023-002
The Organization did not properly adjust monthly PRAC billings as a result of completed recertifications, resulting in a large overpayment of subsidy from HUD. Cause of Condition: The Organization processed adjustments to monthly PRAC billings for eight tenants requesting subsidy for previous months under a new rate without also processing adjustments to return the previously received subsidy to HUD. Effect of Condition: For eight tenants, the Organization received one to eight months of excess subsidy. Recommendation: The design of the current controls should be reviewed to ensure adjustments made to the monthly billings are accurate before submission. Excess subsidy payments should be repaid to HUD. View of Responsible Officials: The Organization understands the finding and will implement procedures to ensure that all adjustments made to the monthly billings are reviewed for accuracy before submission. Overpayment of excess subsidy will be repaid to HUD through adjustments to monthly billings.
Show full finding ▾Hide full finding ▴Criteria: The Organization is required to make adjustments to monthly billings as a result of recertifications. Statement of Condition: The Organization did not properly adjust monthly PRAC billings as a result of completed recertifications, resulting in a large overpayment of subsidy from HUD. Cause of Condition: The Organization processed adjustments to monthly PRAC billings for eight tenants requesting subsidy for previous months under a new rate without also processing adjustments to return the previously received subsidy to HUD. Effect of Condition: For eight tenants, the Organization received one to eight months of excess subsidy. Recommendation: The design of the current controls should be reviewed to ensure adjustments made to the monthly billings are accurate before submission. Excess subsidy payments should be repaid to HUD. View of Responsible Officials: The Organization understands the finding and will implement procedures to ensure that all adjustments made to the monthly billings are reviewed for accuracy before submission. Overpayment of excess subsidy will be repaid to HUD through adjustments to monthly billings.
Recommendation: The design of the current controls should be reviewed to ensure adjustments made to the monthly PRAC billings are accurate before submission. Excess subsidy payments should be repaid to HUD. Action Taken: The management of Cain Center Apartments, Inc. dba Brown-Mackinnon Apartments accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that all adjustments to monthly billings are reviewed for accuracy before submission. Excess subsidy payments will be repaid to HUD through adjustments to monthly billing.
FAC accepted this audit on June 13, 2024 — management decision was due December 13, 2024.
The year-end financial statements prepared for the Organization’s board members and management to assess ongoing operating results are not prepared in accordance with accounting principles generally accepted in the United States of America, in that they do not include certain year-end adjusting entries, a statement of cash flows, and full note disclosures.
Show full finding ▾Hide full finding ▴The year-end financial statements prepared for the Organization’s board members and management to assess ongoing operating results are not prepared in accordance with accounting principles generally accepted in the United States of America, in that they do not include certain year-end adjusting entries, a statement of cash flows, and full note disclosures.
The Organization will continue to rely on Deming, Malone, Livesay & Ostroff, PSC to prepare the year-end financial statements and related note disclosures. The Organization will review and accept responsibility for the financial statements and note disclosures
The Organization did not maintain signed annual recertification forms for the tenant files tested during the audit and did not maintain all of the information such as the EIV reports in the files to support the data used in its preparation.
Show full finding ▾Hide full finding ▴The Organization did not maintain signed annual recertification forms for the tenant files tested during the audit and did not maintain all of the information such as the EIV reports in the files to support the data used in its preparation.
The management of Cain Center Apartments, Inc. dba Brown-Mackinnon Apartments accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will complete and document all annual recertifications, will maintain all Documentation in tenant files to support the 50059 forms, will review all tenant files and report any discrepancies to HUD, and will make the necessary adjustments to tenant rent and rental subsidy calculations on the 50059 forms as soon as possible.
FAC accepted this audit on April 5, 2023 — management decision was due October 5, 2023.
reference number: #2022-001 Assistance listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD029-NP-WPD, year 1994). Auditor non-compliance code: Z-Other Finding resolution: Unresolved Universe population size: 293 invoices Sample size information: 25 invoices Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat finding: Yes Statement of condition #2021-001: During the year ended March 31, 2022, 2 of the 25 cash disbursements selected for testing were not supported by approved invoices, bills or other supporting documentation. Criteria: In accordance with HUD Handbook 4370.2, Section 2-6, all disbursements from the operating account must be supported by approved invoices, bills, or other supporting documentation. Effect or potential effect: The Property is not in compliance with the terms of the PRAC and HUD Handbook 4370.2. Due to inadequate record keeping procedures, the Agent may have paid incorrect amounts for operating expenses. Cause: The Agent was not properly supporting all cash disbursements in accordance with HUD Handbook 4370.2 due to verbal or informal agreements with vendors.Recommendation: The Agent should ensure that all cash disbursements are supported by approved invoices, bills, or other supporting documentation. The Agent should require that vendors provide written documentation of services or goods provided prior to making payments to the vendors. Completion date: March 31, 2023 Management's response: The Agent concurs with the recommendation. The Agent will require all vendors to submit invoices or other support for work performed prior to making payments to the vendors, and all documentation will be retained.
Show full finding ▾Hide full finding ▴reference number: #2022-001 Assistance listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD029-NP-WPD, year 1994). Auditor non-compliance code: Z-Other Finding resolution: Unresolved Universe population size: 293 invoices Sample size information: 25 invoices Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat finding: Yes Statement of condition #2021-001: During the year ended March 31, 2022, 2 of the 25 cash disbursements selected for testing were not supported by approved invoices, bills or other supporting documentation. Criteria: In accordance with HUD Handbook 4370.2, Section 2-6, all disbursements from the operating account must be supported by approved invoices, bills, or other supporting documentation. Effect or potential effect: The Property is not in compliance with the terms of the PRAC and HUD Handbook 4370.2. Due to inadequate record keeping procedures, the Agent may have paid incorrect amounts for operating expenses. Cause: The Agent was not properly supporting all cash disbursements in accordance with HUD Handbook 4370.2 due to verbal or informal agreements with vendors.Recommendation: The Agent should ensure that all cash disbursements are supported by approved invoices, bills, or other supporting documentation. The Agent should require that vendors provide written documentation of services or goods provided prior to making payments to the vendors. Completion date: March 31, 2023 Management's response: The Agent concurs with the recommendation. The Agent will require all vendors to submit invoices or other support for work performed prior to making payments to the vendors, and all documentation will be retained.
Statement of condition #2022-001: Comments on Finding and Recommendation: During the year ended March 31, 2022, 2 of the 25 cash disbursements selected for testing were not supported by approved invoices, bills, or other supporting documentation. The Agent should ensure that all cash disbursements are supported by approved invoices, bills, or other supporting documentation. The Agent should require that vendors provide written documentation of services or goods provided prior to making payments to the vendors. Action(s) Taken or Planned on the Finding: The Agent will require all vendors to submit invoices or other support for work performed prior to making payments to the vendors, and all documentation will be retained.
2021-001
FAC accepted this audit on October 19, 2021 — management decision was due April 19, 2022.
Finding reference number: #2021-001 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD029-NP-WPD, year 1994). Auditor non-compliance code: Z-Other Finding resolution: Unresolved Universe population size: 276 invoices Sample size information: 25 invoices Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat finding: No Statement of condition #2021-001: During the year ended March 31, 2021, 7 of the 25 cash disbursements selected for testing were not supported by approved invoices, bills or other supporting documentation. Criteria: In accordance with HUD Handbook 4370.2, Section 2-6, all disbursements from the operating account must be supported by approved invoices, bills, or other supporting documentation. Effect or potential effect: The Property is not in compliance with the terms of the PRAC and HUD Handbook 4370.2. Due to inadequate record keeping procedures, the Agent may have paid incorrect amounts for operating expenses. Cause: The Agent was not properly supporting all cash disbursements in accordance with HUD Handbook 4370.2 due to verbal or informal agreements with vendors. Recommendation: The Agent should ensure that all cash disbursements are supported by approved invoices, bills, or other supporting documentation. The Agent should require that vendors provide written documentation of services or goods provided prior to making payments to the vendors. Completion date: March 31, 2022 Management's response: The Agent concurs with the recommendation. The Agent will require all vendors to submit invoices or other support for work performed prior to making payments to the vendors, and all documentation will be retained.
Show full finding ▾Hide full finding ▴Finding reference number: #2021-001 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD029-NP-WPD, year 1994). Auditor non-compliance code: Z-Other Finding resolution: Unresolved Universe population size: 276 invoices Sample size information: 25 invoices Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat finding: No Statement of condition #2021-001: During the year ended March 31, 2021, 7 of the 25 cash disbursements selected for testing were not supported by approved invoices, bills or other supporting documentation. Criteria: In accordance with HUD Handbook 4370.2, Section 2-6, all disbursements from the operating account must be supported by approved invoices, bills, or other supporting documentation. Effect or potential effect: The Property is not in compliance with the terms of the PRAC and HUD Handbook 4370.2. Due to inadequate record keeping procedures, the Agent may have paid incorrect amounts for operating expenses. Cause: The Agent was not properly supporting all cash disbursements in accordance with HUD Handbook 4370.2 due to verbal or informal agreements with vendors. Recommendation: The Agent should ensure that all cash disbursements are supported by approved invoices, bills, or other supporting documentation. The Agent should require that vendors provide written documentation of services or goods provided prior to making payments to the vendors. Completion date: March 31, 2022 Management's response: The Agent concurs with the recommendation. The Agent will require all vendors to submit invoices or other support for work performed prior to making payments to the vendors, and all documentation will be retained.
Statement of condition #2021-001:Comments on Finding and Recommendation: During the year ended March 31, 2021, 7 of the 25 cash disbursements selected for testing were not supported by approved invoices, bills, or other supporting documentation. The Agent should ensure that all cash disbursements are supported by approved invoices, bills, or other supporting documentation. The Agent should require that vendors provide written documentation of services or goods provided prior to making payments to the vendors. Action(s) Taken or Planned on the Finding: The Agent will require all vendors to submit invoices or other support for work performed prior to making payments to the vendors, and all documentation will be retained.
Finding reference number: #2021-002 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD029- NP-WPD, year 1994). Auditor non-compliance code: R-Section 8 Program Administration Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $3,392 Repeat finding: No Statement of condition #2021-002: During the year ended March 31, 2021, the Property continued to request and receive subsidy for a former resident who moved to another Property managed by CCD for six months after the former resident transferred to another property. The affiliated property also received subsidy for the resident during the same time period. Criteria: Per HUD Handbook 4350.3, the Agent should not request PRAC subsidy for residents after they move out of the Property. Effect or potential effect: The Property is not in compliance with Section 2.4 of the PRAC Contract regarding termination of housing assistance. Due to inadequate record keeping procedures, the Agent received unauthorized PRAC payments for six months after a former resident moved out of the Property. Cause: The Agent inadvertently failed to remove the former resident from the monthly PRAC subsidy requests after the resident moved to another Property. Recommendation: The Agent should note resident move outs on the monthly PRAC vouchers within a timely manner following a resident moving out to avoid receiving unauthorized PRAC payments. Completion date: September 30, 2021 Management?s response: The Agent concurs with the recommendation. The Agent will note resident move outs on the monthly PRAC requested in a timely manner following the terminating event to avoid receiving unauthorized PRAC payments. The Property will reimburse HUD for the unauthorized PRAC payments received.
Show full finding ▾Hide full finding ▴Finding reference number: #2021-002 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD029- NP-WPD, year 1994). Auditor non-compliance code: R-Section 8 Program Administration Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $3,392 Repeat finding: No Statement of condition #2021-002: During the year ended March 31, 2021, the Property continued to request and receive subsidy for a former resident who moved to another Property managed by CCD for six months after the former resident transferred to another property. The affiliated property also received subsidy for the resident during the same time period. Criteria: Per HUD Handbook 4350.3, the Agent should not request PRAC subsidy for residents after they move out of the Property. Effect or potential effect: The Property is not in compliance with Section 2.4 of the PRAC Contract regarding termination of housing assistance. Due to inadequate record keeping procedures, the Agent received unauthorized PRAC payments for six months after a former resident moved out of the Property. Cause: The Agent inadvertently failed to remove the former resident from the monthly PRAC subsidy requests after the resident moved to another Property. Recommendation: The Agent should note resident move outs on the monthly PRAC vouchers within a timely manner following a resident moving out to avoid receiving unauthorized PRAC payments. Completion date: September 30, 2021 Management?s response: The Agent concurs with the recommendation. The Agent will note resident move outs on the monthly PRAC requested in a timely manner following the terminating event to avoid receiving unauthorized PRAC payments. The Property will reimburse HUD for the unauthorized PRAC payments received.
Statement of condition #2021-002 Comments on Finding and Recommendation: During the year ended March 31, 2021, the Property continued to request and receive subsidy for a former resident who moved to another Property managed by CCD for six months after the former resident transferred to another property. The affiliated property also received subsidy for the resident during the same time period. The Agent should note resident move outs on the monthly PRAC vouchers within a timely manner following a resident moving out to avoid receiving unauthorized PRAC payments. Action(s) Taken or Planned on the Finding: The Agent will note resident move outs on the monthly PRAC requested in a timely manner following the terminating event to avoid receiving unauthorized PRAC payments. The Property will reimburse HUD for the unauthorized PRAC payments received.
FAC accepted this audit on October 4, 2020 — management decision was due April 4, 2021.
Finding reference number: #2020-001 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD029-NP-WPD, year 1994). Auditor non-compliance code: R-Section 8 Program Administration Finding resolution status: In process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition #2020-001: During the year ended March 31, 2020, one of the applicants selected for testing under the HUD Consolidated Audit Guide was admitted to the Property, but did not appear on the waiting list. Criteria: In accordance with the PRAC and HUD Handbook 4350.3, Sections 4-15 and 4-16, the Agent must place applicants on the Property's waiting list and select applicants from the waiting list in chronological order in order to fill vacancies. Effect or potential effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4350.3. Due to inadequate record keeping procedures, the Agent may have selected applicants out of chronological order. Cause: The Agent was not properly maintaining the waiting list in accordance with HUD Handbook 4350.3. Recommendation: The Agent should ensure that all applicants are properly documented on the waiting list and applicants are contacted and selected in chronological order. Questioned costs: N/A Reporting views of responsible officials: The Agent concurs with the recommendation. The Agent will review and update its procedures to ensure that all applicants are included on the waiting list and applicants are selected in chronological order.
Show full finding ▾Hide full finding ▴Finding reference number: #2020-001 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD029-NP-WPD, year 1994). Auditor non-compliance code: R-Section 8 Program Administration Finding resolution status: In process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition #2020-001: During the year ended March 31, 2020, one of the applicants selected for testing under the HUD Consolidated Audit Guide was admitted to the Property, but did not appear on the waiting list. Criteria: In accordance with the PRAC and HUD Handbook 4350.3, Sections 4-15 and 4-16, the Agent must place applicants on the Property's waiting list and select applicants from the waiting list in chronological order in order to fill vacancies. Effect or potential effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4350.3. Due to inadequate record keeping procedures, the Agent may have selected applicants out of chronological order. Cause: The Agent was not properly maintaining the waiting list in accordance with HUD Handbook 4350.3. Recommendation: The Agent should ensure that all applicants are properly documented on the waiting list and applicants are contacted and selected in chronological order. Questioned costs: N/A Reporting views of responsible officials: The Agent concurs with the recommendation. The Agent will review and update its procedures to ensure that all applicants are included on the waiting list and applicants are selected in chronological order.
Name of auditee: Cain Center Apartments, Inc. HUD auditee identification number: 083-HD029-NP-WPD Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended March 31, 2020 CAP prepared by Name: Linda House Position: Executive Director Telephone number: (502) 589-3030 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition #2020-001: During the year ended March 31, 2020, one of the applicants selected for testing under the HUD Consolidated Audit Guide was admitted to the Property, but did not appear on the waiting list. Recommendation: The Agent should ensure that all applicants are properly documented on the waiting list and applicants are contacted and selected in chronological order. Action(s) Taken or Planned on the Finding: The Agent will review and update its procedures to ensure that all applicants are included on the waiting list and applicants are selected in chronological order.
FAC accepted this audit on July 2, 2019 — management decision was due January 2, 2020.
Finding reference number: #2019-001 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Capital advance identification number 083-HD029 and project rental assistance contract identification number KY36-Q931-003 and 1996) Auditor non-compliance code: I-Failure to maintain property/open physical inspection Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition #2019-001 (CFDA No. 14.181): The Organization received a REAC inspection score of 58c* (out of a possible 100), on an inspection report conducted by a representative of HUD on August 23, 2018. Criteria: Pursuant to paragraph 8 of the Regulatory Agreement and PRAC Contract, the Property is to be maintained in good repair and condition and considered decent, safe and sanitary. Management is to conduct routine unit and general property inspections, and deficiencies should be corrected. Effect: If the deficiencies are of a life threatening nature and not corrected in a timely manner, the units could be considered not to be in a decent, safe, and sanitary condition. This is a direct violation of the Regulatory Agreement and therefore gives HUD the authority to require immediate repayment of the Capital Advance, suspend the collection of management fees, and/or require subsidy received from the PRAC Contract to be repaid to HUD for the period the Property was out of compliance. Cause: Management was not using the Uniform Physical Condition Standards Comprehensive Literary Checklist to ensure that the Property was in compliance with HUD requirements when completing self-inspections. Recommendation: Management should continue to conduct routine unit and general property inspections and deficiencies should be corrected in a timely manner. Reporting views of responsible officials: Management has responded to HUD in regards to this inspection report. Management conducts routine unit and site inspections to ensure that units are in a decent, safe, and sanitary condition. Management has corrected all exigent health and safety issues and conducted a survey of the Property identifying and correcting all noted physical deficiencies.
Show full finding ▾Hide full finding ▴Finding reference number: #2019-001 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Capital advance identification number 083-HD029 and project rental assistance contract identification number KY36-Q931-003 and 1996) Auditor non-compliance code: I-Failure to maintain property/open physical inspection Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition #2019-001 (CFDA No. 14.181): The Organization received a REAC inspection score of 58c* (out of a possible 100), on an inspection report conducted by a representative of HUD on August 23, 2018. Criteria: Pursuant to paragraph 8 of the Regulatory Agreement and PRAC Contract, the Property is to be maintained in good repair and condition and considered decent, safe and sanitary. Management is to conduct routine unit and general property inspections, and deficiencies should be corrected. Effect: If the deficiencies are of a life threatening nature and not corrected in a timely manner, the units could be considered not to be in a decent, safe, and sanitary condition. This is a direct violation of the Regulatory Agreement and therefore gives HUD the authority to require immediate repayment of the Capital Advance, suspend the collection of management fees, and/or require subsidy received from the PRAC Contract to be repaid to HUD for the period the Property was out of compliance. Cause: Management was not using the Uniform Physical Condition Standards Comprehensive Literary Checklist to ensure that the Property was in compliance with HUD requirements when completing self-inspections. Recommendation: Management should continue to conduct routine unit and general property inspections and deficiencies should be corrected in a timely manner. Reporting views of responsible officials: Management has responded to HUD in regards to this inspection report. Management conducts routine unit and site inspections to ensure that units are in a decent, safe, and sanitary condition. Management has corrected all exigent health and safety issues and conducted a survey of the Property identifying and correcting all noted physical deficiencies.
Name of auditee: Cain Center Apartments, Inc. HUD auditee identification number: 083-HD029-NP-WPD Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended March 31, 2019 CAP prepared by Name: Linda House Position: Executive Director Telephone number: (502) 589-3030 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition #2019-001 (CFDA 14.181): For the year ended March 31, 2019, the Property received a REAC score of 58c* (out of 100) on an inspection report conducted by a representative of HUD. Recommendation: Management should continue to conduct routine unit and general property inspections and deficiencies should be corrected in a timely manner. Action(s) Taken or Planned on the Finding: Management concurs with the finding and agrees with the recommendation. Management has responded to HUD in regards to this inspection report and has addressed all life threatening issues. No further action is required.
FAC accepted this audit on July 8, 2018 — management decision was due January 8, 2019.
FAC accepted this audit on July 20, 2017 — management decision was due January 20, 2018.
FAC accepted this audit on August 31, 2016 — management decision was due March 3, 2017.
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