EIN: 721436982
UEI: QJ95XUJJTXM3
Audited by: LITTLE AND ASSOCIATES, LLC
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 February 4, 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 4, 2026 (25 days ago).
What is a management decision? →In accordance with the HUD requirements, the Project is required to get approval from HUD before any withdrawals from the Replacement Reserve Account can be made. Our review disclosed that there was a withdrawal in the amount of $2,994 from the Replacement Reserve account in October 2024 to pay operating expenses after the projects operating account did not hold enough funds to cover the costs. Cause: The withdrawal was made because the Project’s Operating Account did not contain sufficient funds to cover the costs. There were no adequate cash management procedures in place to ensure that operating obligations were paid only by the operating account. There were no internal controls in place to detect or prevent unauthorized withdrawals from the Replacement Reserve account. Effect: Replacement Reserve account is underfunded and the Project is not in compliance with HUD’s regulations. If a significant replacement need were to arise, there may not be adequate funds in Replacement Reserve to cover the cost. Auditors’ Recommendation: Management should implement internal controls suitable to detect and prevent unauthorized replacement reserve withdrawals and implement stronger cash management and oversight procedures to ensure operating expenses are paid only by the operating account and that sufficient operating funds are available before obligations are incurred. Also, Management should make the necessary deposits to restore the funding shortfall as of June 30, 2025. In addition, Management should establish internal control procedures to reconcile, on a monthly basis, the Replacement Reserve account balance and the Replacement Reserve general ledger to the total amount of the Replacement Reserve required by HUD. Auditor Non-Compliance Code: N – Reserve for Replacement Requirements FHA/Contract Number: 064- HD044 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: The auditee concurs with the finding. Magnolia Manor Corporation has taken corrective action to restore the Replacement Reserve account by depositing the underfunded amounts of $2,688.00 on August 20, 2025, and $306.00 on September 15, 2025. The auditee further stated that it has reviewed the auditors’ recommendation and will implement more thorough monthly reviews to ensure adequate monitoring and to prevent future unauthorized withdrawals from the Replacement Reserve account. Reporting Views of Responsible Officials: We agree with the auditor’s finding and recommendation. Magnolia Manor Corporation has taken steps to ensure that the Replacement Reserve account will not be underfunded by withdrawing funds to cover the Operating Account and will ensure that more thorough monthly reviews are implemented. The previously underfunded amount was partially restored on August 20, 2025, and fully replenished on September 15, 2025. Response Indicator: Agree Completion Date: September 15, 2025 Response: Magnolia Manor Corporation has taken steps to ensure that the Replacement Reserve account will not be underfunded by withdrawing funds to cover the Operating Account. The underfunded amount of $2,688.00 has been deposited on August 20, 2025, and $306.00 has been deposited on September 15, 2025. Magnolia Manor Corporation has reviewed the auditors' recommendation and will ensure that more thorough monthly reviews will be implemented. Contact Person: Rhonda M. Kay SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Supportive Housing for Persons with Disabilities Assistance Listing Number 14.181 See Finding 2025-1 under Section II – Financial Statement Findings.
Show full finding ▾Hide full finding ▴SECTION II – FINANCIAL STATEMENT FINDINGS Finding 2025-1 Lack of Internal Controls Over Replacement Reserve Withdrawal Finding Resolution Status: Resolved Information on Universal Population Size: One Instance Sample Size: N/A Questioned Costs: $0 Criteria: Withdrawals from the Replacement Reserve account must have prior written approval from HUD and may only be used for capital expenditures or other purposes specifically authorized by HUD. Condition: In accordance with the HUD requirements, the Project is required to get approval from HUD before any withdrawals from the Replacement Reserve Account can be made. Our review disclosed that there was a withdrawal in the amount of $2,994 from the Replacement Reserve account in October 2024 to pay operating expenses after the projects operating account did not hold enough funds to cover the costs. Cause: The withdrawal was made because the Project’s Operating Account did not contain sufficient funds to cover the costs. There were no adequate cash management procedures in place to ensure that operating obligations were paid only by the operating account. There were no internal controls in place to detect or prevent unauthorized withdrawals from the Replacement Reserve account. Effect: Replacement Reserve account is underfunded and the Project is not in compliance with HUD’s regulations. If a significant replacement need were to arise, there may not be adequate funds in Replacement Reserve to cover the cost. Auditors’ Recommendation: Management should implement internal controls suitable to detect and prevent unauthorized replacement reserve withdrawals and implement stronger cash management and oversight procedures to ensure operating expenses are paid only by the operating account and that sufficient operating funds are available before obligations are incurred. Also, Management should make the necessary deposits to restore the funding shortfall as of June 30, 2025. In addition, Management should establish internal control procedures to reconcile, on a monthly basis, the Replacement Reserve account balance and the Replacement Reserve general ledger to the total amount of the Replacement Reserve required by HUD. Auditor Non-Compliance Code: N – Reserve for Replacement Requirements FHA/Contract Number: 064- HD044 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: The auditee concurs with the finding. Magnolia Manor Corporation has taken corrective action to restore the Replacement Reserve account by depositing the underfunded amounts of $2,688.00 on August 20, 2025, and $306.00 on September 15, 2025. The auditee further stated that it has reviewed the auditors’ recommendation and will implement more thorough monthly reviews to ensure adequate monitoring and to prevent future unauthorized withdrawals from the Replacement Reserve account. Reporting Views of Responsible Officials: We agree with the auditor’s finding and recommendation. Magnolia Manor Corporation has taken steps to ensure that the Replacement Reserve account will not be underfunded by withdrawing funds to cover the Operating Account and will ensure that more thorough monthly reviews are implemented. The previously underfunded amount was partially restored on August 20, 2025, and fully replenished on September 15, 2025. Response Indicator: Agree Completion Date: September 15, 2025 Response: Magnolia Manor Corporation has taken steps to ensure that the Replacement Reserve account will not be underfunded by withdrawing funds to cover the Operating Account. The underfunded amount of $2,688.00 has been deposited on August 20, 2025, and $306.00 has been deposited on September 15, 2025. Magnolia Manor Corporation has reviewed the auditors' recommendation and will ensure that more thorough monthly reviews will be implemented. Contact Person: Rhonda M. Kay SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Supportive Housing for Persons with Disabilities Assistance Listing Number 14.181 See Finding 2025-1 under Section II – Financial Statement Findings.
Magnolia Manor Corporation has taken steps to ensure that the Replacement Reserve account will not be underfunded by withdrawing funds to cover the Operating Account. The underfunded amount of $2,688.00 has been deposited on August 20, 2025, and $306.00 has been deposited on September 15, 2025. Magnolia Manor Corporation has reviewed the auditors' recommendation and will ensure that more thorough monthly reviews will be implemented.
FAC accepted this audit on October 17, 2024 — management decision was due April 17, 2025.
FAC accepted this audit on November 2, 2023 — management decision was due May 2, 2024.
In accordance with the HUD requirements, the Project was required to make monthly deposits to the Replacement Reserve account in the total amount of $16,128 for the year ended June 30, 2023. Although the Project made deposits to the Replacement Reserve account in the total amount of $16,128 for the year ended June 30, 2023, the deficiency of $2,688 from the prior year was included in these deposits. Two monthly deposits were not made during the year ended June 30, 2023. In addition, deposits are not being consistently made on a monthly basis to the Replacement Reserve account. There were no internal controls in place to detect or prevent missed deposits to the Replacement Reserve account. Cause: Unknown Effect: Replacement Reserve account is underfunded and the Project is not in compliance with HUD’s regulations. If a significant replacement need were to arise, there may not be adequate funds in Replacement Reserve to cover the cost. Auditors’ Recommendation: Management should implement internal controls suitable to detect and prevent missed replacement reserve deposits and to ensure that the Management makes all required monthly deposits to the Replacement Reserve account. Also, Management should make the necessary deposit to restore the funding shortfall as of June 30, 2023. In addition, Management should establish internal control procedures to reconcile, on a monthly basis, the Replacement Reserve account balance and the Replacement Reserve general ledger to the total amount of the Replacement Reserve required by HUD. Auditor Non-Compliance Code: N – Reserve for Replacement Requirements FHA/Contract Number: 064- HD044 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: The Auditee has resolved this finding as of September 26, 2023, by depositing the two missed deposits in the amount of $2,688. The Auditee has also taken steps to prevent this finding in the future by implementing new controls of automatic monthly transfer of deposit to the Replacement Reserve. Reporting Views of Responsible Officials: We agree with the auditor’s finding and recommendations. Magnolia Manor has taken steps to assure that the Replacement Reserve account will not be underfunded again by making the transfer an automatic transfer from the Operating account to the Reserve account. The amount that the account was underfunded was deposited on September 26, 2023. Response Indicator: Agree Completion Date: September 26, 2023 Response: Magnolia Manor has taken steps to assure that the Replacement Reserve account will not be underfunded again by making the transfer an automatic transfer from the Operating account to the Reserve account. The amount that the account was underfunded was deposited on September 26, 2023. Contact Person: Rhonda M. Kay SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Supportive Housing for Persons with Disabilities CFDA # 14.181 See Finding 2023-1 under Section II – Financial Statement Findings.
Show full finding ▾Hide full finding ▴SECTION II – FINANCIAL STATEMENT FINDINGS Finding 2023-1 Lack of Internal Controls Over Monthly Replacement Reserve Funding Finding Resolution Status: Resolved Information on Universal Population Size: Two Instances Sample Size: 12 Identification of Repeat Finding and Finding Reference Number: 2022-1 Questioned Costs: $0 Criteria: Monthly deposits to the Replacement Reserve account must be made monthly in accordance with HUD required amounts. Condition: In accordance with the HUD requirements, the Project was required to make monthly deposits to the Replacement Reserve account in the total amount of $16,128 for the year ended June 30, 2023. Although the Project made deposits to the Replacement Reserve account in the total amount of $16,128 for the year ended June 30, 2023, the deficiency of $2,688 from the prior year was included in these deposits. Two monthly deposits were not made during the year ended June 30, 2023. In addition, deposits are not being consistently made on a monthly basis to the Replacement Reserve account. There were no internal controls in place to detect or prevent missed deposits to the Replacement Reserve account. Cause: Unknown Effect: Replacement Reserve account is underfunded and the Project is not in compliance with HUD’s regulations. If a significant replacement need were to arise, there may not be adequate funds in Replacement Reserve to cover the cost. Auditors’ Recommendation: Management should implement internal controls suitable to detect and prevent missed replacement reserve deposits and to ensure that the Management makes all required monthly deposits to the Replacement Reserve account. Also, Management should make the necessary deposit to restore the funding shortfall as of June 30, 2023. In addition, Management should establish internal control procedures to reconcile, on a monthly basis, the Replacement Reserve account balance and the Replacement Reserve general ledger to the total amount of the Replacement Reserve required by HUD. Auditor Non-Compliance Code: N – Reserve for Replacement Requirements FHA/Contract Number: 064- HD044 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: The Auditee has resolved this finding as of September 26, 2023, by depositing the two missed deposits in the amount of $2,688. The Auditee has also taken steps to prevent this finding in the future by implementing new controls of automatic monthly transfer of deposit to the Replacement Reserve. Reporting Views of Responsible Officials: We agree with the auditor’s finding and recommendations. Magnolia Manor has taken steps to assure that the Replacement Reserve account will not be underfunded again by making the transfer an automatic transfer from the Operating account to the Reserve account. The amount that the account was underfunded was deposited on September 26, 2023. Response Indicator: Agree Completion Date: September 26, 2023 Response: Magnolia Manor has taken steps to assure that the Replacement Reserve account will not be underfunded again by making the transfer an automatic transfer from the Operating account to the Reserve account. The amount that the account was underfunded was deposited on September 26, 2023. Contact Person: Rhonda M. Kay SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Supportive Housing for Persons with Disabilities CFDA # 14.181 See Finding 2023-1 under Section II – Financial Statement Findings.
Magnolia Manor has taken steps to assure that the Replacement Reserve account will not be underfunded again by making the transfer an automatic transfer from the Operating account to the Reserve account. The amount that the account was underfunded was deposited on September 26, 2023.
2022-001
FAC accepted this audit on October 13, 2022 — management decision was due April 13, 2023.
In accordance with the HUD requirements, the Project was required to make monthly deposits to the Replacement Reserve account in the total amount of $16,128 for the year ended June 30, 2022. The Project made monthly deposits to the Replacement Reserve account in the total amount of $13,440 for the year ended June 30, 2022, which created a deficiency of $2,688 in the Replacement Reserve account at June 30, 2022. Two monthly deposits were not made during the year ended June 30, 2022. There were no internal controls in place to detect or prevent missed deposits to the Replacement Reserve account. Cause: Unknown Effect: Replacement Reserve account is underfunded and the Project is not in compliance with HUD?s regulations. If a significant replacement need were to arise, there may not be adequate funds in Replacement Reserve to cover the cost. Auditors? Recommendation: Management should implement internal controls suitable to detect and prevent missed replacement reserve deposits and to ensure that the Management makes all required monthly deposits to the Replacement Reserve account. Also, Management should make the necessary deposit to restore the funding shortfall as of June 30, 2022. In addition, Management should establish internal control procedures to reconcile, on a monthly basis, the Replacement Reserve account balance and the Replacement Reserve general ledger to the total amount of the Replacement Reserve required by HUD. Auditor Non-Compliance Code: N ? Reserve for Replacement Requirements FHA/Contract Number: 064- HD044 Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations: The Auditee has resolved this finding as of September 15, 2022, by depositing the two missed deposits in the amount of $2,688. The Auditee has also taken steps to prevent this finding in the future by implementing new controls of automatic monthly transfer of deposit to the Replacement Reserve. Reporting Views of Responsible Officials: We agree with the auditor?s finding and recommendations. Magnolia Manor has taken steps to assure that the Replacement Reserve account will not be underfunded again by making the transfer an automatic transfer from the Operating account to the Replacement Reserve account. The amount that the account was underfunded was deposited on September 15, 2022. Response Indicator: Agree Completion Date: September 15, 2022 Response: Magnolia Manor has taken steps to assure that the Replacement Reserve account will not be underfunded again by making the transfer an automatic transfer from the Operating account to the Replacement Reserve account. The amount that the account was underfunded was deposited on September 15, 2022. Contact Person: Rhonda M. Kay SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Supportive Housing for Persons with Disabilities CFDA # 14.181 See Finding 2022-1 under Section II ? Financial Statement Findings.
Show full finding ▾Hide full finding ▴SECTION II ? FINANCIAL STATEMENT FINDINGS Finding 2022-1 Lack of Internal Controls Over Monthly Replacement Reserve Funding Finding Resolution Status: Resolved Information on Universal Population Size: Two Instances Sample Size: 12 Identification of Repeat Finding and Finding Reference Number: N/A Questioned Costs: $0 Criteria: Monthly deposits to the Replacement Reserve account must be made monthly in accordance with HUD required amounts. Condition: In accordance with the HUD requirements, the Project was required to make monthly deposits to the Replacement Reserve account in the total amount of $16,128 for the year ended June 30, 2022. The Project made monthly deposits to the Replacement Reserve account in the total amount of $13,440 for the year ended June 30, 2022, which created a deficiency of $2,688 in the Replacement Reserve account at June 30, 2022. Two monthly deposits were not made during the year ended June 30, 2022. There were no internal controls in place to detect or prevent missed deposits to the Replacement Reserve account. Cause: Unknown Effect: Replacement Reserve account is underfunded and the Project is not in compliance with HUD?s regulations. If a significant replacement need were to arise, there may not be adequate funds in Replacement Reserve to cover the cost. Auditors? Recommendation: Management should implement internal controls suitable to detect and prevent missed replacement reserve deposits and to ensure that the Management makes all required monthly deposits to the Replacement Reserve account. Also, Management should make the necessary deposit to restore the funding shortfall as of June 30, 2022. In addition, Management should establish internal control procedures to reconcile, on a monthly basis, the Replacement Reserve account balance and the Replacement Reserve general ledger to the total amount of the Replacement Reserve required by HUD. Auditor Non-Compliance Code: N ? Reserve for Replacement Requirements FHA/Contract Number: 064- HD044 Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations: The Auditee has resolved this finding as of September 15, 2022, by depositing the two missed deposits in the amount of $2,688. The Auditee has also taken steps to prevent this finding in the future by implementing new controls of automatic monthly transfer of deposit to the Replacement Reserve. Reporting Views of Responsible Officials: We agree with the auditor?s finding and recommendations. Magnolia Manor has taken steps to assure that the Replacement Reserve account will not be underfunded again by making the transfer an automatic transfer from the Operating account to the Replacement Reserve account. The amount that the account was underfunded was deposited on September 15, 2022. Response Indicator: Agree Completion Date: September 15, 2022 Response: Magnolia Manor has taken steps to assure that the Replacement Reserve account will not be underfunded again by making the transfer an automatic transfer from the Operating account to the Replacement Reserve account. The amount that the account was underfunded was deposited on September 15, 2022. Contact Person: Rhonda M. Kay SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Supportive Housing for Persons with Disabilities CFDA # 14.181 See Finding 2022-1 under Section II ? Financial Statement Findings.
Magnolia Manor has taken steps to assure that the Replacement Reserve account will not be underfunded again by making the transfer an automatic transfer from the Operating account to the Replacement Reserve account. The amount that the account was underfunded was deposited on September 15, 2022.
FAC accepted this audit on October 13, 2021 — management decision was due April 13, 2022.
FAC accepted this audit on October 19, 2020 — management decision was due April 19, 2021.
FAC accepted this audit on October 28, 2019 — management decision was due April 28, 2020.
FAC accepted this audit on October 24, 2018 — management decision was due April 24, 2019.
FAC accepted this audit on October 22, 2017 — management decision was due April 22, 2018.
FAC accepted this audit on December 22, 2016 — management decision was due June 22, 2017.
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