FAC Explorer

Audit 10326

FY End
2023-06-30
Total Expended
$4.73M
Findings
6
Programs
2
Organization: Saint Elizabeth Manor, Inc. (CT)
Year: 2023 Accepted: 2024-01-09
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7918 2023-001 Material Weakness - N
7919 2023-002 - - N
7920 2023-003 - - N
584360 2023-001 Material Weakness - N
584361 2023-002 - - N
584362 2023-003 - - N

Programs

ALN Program Spent Major Findings
14.134 Mortgage Insurance_rental Housing $4.05M Yes 3
14.195 Section 8 Housing Assistance Payments Program $679,556 - 0

Contacts

Name Title Type
KQZVXWKLATD3 Jonathan Ramsay Auditee
8603422224 Patricia E. McGowan Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations, and/or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Saint Elizabeth Manor, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Saint Elizabeth Manor, Inc., FHA Project Number: 017-EH120 under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of Saint Elizabeth Manor, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Saint Elizabeth Manor, Inc. For the year ended June 30, 2023, no awards were passed through to subrecipients.
Title: U.S. Department of Housing and Urban Development loan program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations, and/or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Saint Elizabeth Manor, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Saint Elizabeth Manor, Inc. has received mortgage insurance from the U.S. Department of Housing and Urban Development under Section 207 pursuant to Section 223(f) of the National Housing Act. The mortgage balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Saint Elizabeth Manor, Inc. received no additional proceeds during the year. The balance of the outstanding loan insured by HUD at June 30, 2023 consists of: federal assistance Listing Number: 14.134; Program Name: Mortgage Insurance - Rental Housing; Outstanding Balance at June 30, 2023: $3,983,895

Finding Details

Finding 2023-001
Finding No. 2023-001; Mortgage Insurance - Rental Housing, Assistance Listing 14.134 Criteria In accordance with the regulatory agreement, management is required to maintain the property in good repair. Condition Management failed to maintain the property in good repair and received a score of 46c* in its 2023 REAC Physical Inspection. Cause The procedures to ensure compliance with HUD regulations regarding physical condition of the property were not followed. Effect or Potential Effect The Project was unable to obtain a passing score on its REAC inspection. Questioned Costs None Recommendation Management should correct all findings noted in the REAC Physical Inspection Report in the time frames requested in the physical inspection. Auditor Noncompliance Code: I – Failure to maintain property/open physical inspection Finding Resolution Status: In process Views of Responsible Officials All findings in the REAC physical inspection Report have been corrected and evidence was submitted to HUD for their review. Additional property inspections by on-site employees and management will be completed throughout the year to ensure compliance.
Finding 2023-002
Finding No. 2023-002; Mortgage Insurance - Rental Housing, Assistance Listing 14.134 Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Housing Programs. Condition During the procedures applied to a sample of one tenant lease file of new tenants, we noted one instance where the Project did not maintain evidence in the lease file that the Enterprise Income Verification ("EIV") system was utilized within 90 days of the tenant's move in certification. Cause Management's policies with respect to the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Programs were not consistently followed. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Recommendation Management should monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Programs. Auditor Noncompliance Code: R - Section 8 program administration Finding Resolution Status: In Process Views of Responsible Officials Management will review all tenant files before lease signing and after annual recertifications to ensure proper procedure were completed and documented in each tenant file.
Finding 2023-003
Criteria Management is responsible for maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Housing Programs. Condition During the procedures applied to a sample of one tenant lease file of tenants that moved out of the Project during the year, we noted one instance were the Project did not have a move-out inspection form in the lease file. Cause Management's policies with respect to the determination of tenant security deposits and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant security deposits and eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in disagreements with tenants regarding unit damages and the amount of security deposit refunded. Questioned Costs None Recommendation Management should monitor compliance with those procedures to ensure that tenant lease files are in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Programs. Auditor Noncompliance Code: R - Section 8 program administration Finding Resolution Status: In Process Views of Responsible Officials Management will review tenant files at the time of a tenant move out to ensure proper documentation is retained in the tenant file.
Finding 2023-001
Finding No. 2023-001; Mortgage Insurance - Rental Housing, Assistance Listing 14.134 Criteria In accordance with the regulatory agreement, management is required to maintain the property in good repair. Condition Management failed to maintain the property in good repair and received a score of 46c* in its 2023 REAC Physical Inspection. Cause The procedures to ensure compliance with HUD regulations regarding physical condition of the property were not followed. Effect or Potential Effect The Project was unable to obtain a passing score on its REAC inspection. Questioned Costs None Recommendation Management should correct all findings noted in the REAC Physical Inspection Report in the time frames requested in the physical inspection. Auditor Noncompliance Code: I – Failure to maintain property/open physical inspection Finding Resolution Status: In process Views of Responsible Officials All findings in the REAC physical inspection Report have been corrected and evidence was submitted to HUD for their review. Additional property inspections by on-site employees and management will be completed throughout the year to ensure compliance.
Finding 2023-002
Finding No. 2023-002; Mortgage Insurance - Rental Housing, Assistance Listing 14.134 Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Housing Programs. Condition During the procedures applied to a sample of one tenant lease file of new tenants, we noted one instance where the Project did not maintain evidence in the lease file that the Enterprise Income Verification ("EIV") system was utilized within 90 days of the tenant's move in certification. Cause Management's policies with respect to the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Programs were not consistently followed. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Recommendation Management should monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Programs. Auditor Noncompliance Code: R - Section 8 program administration Finding Resolution Status: In Process Views of Responsible Officials Management will review all tenant files before lease signing and after annual recertifications to ensure proper procedure were completed and documented in each tenant file.
Finding 2023-003
Criteria Management is responsible for maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Housing Programs. Condition During the procedures applied to a sample of one tenant lease file of tenants that moved out of the Project during the year, we noted one instance were the Project did not have a move-out inspection form in the lease file. Cause Management's policies with respect to the determination of tenant security deposits and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant security deposits and eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in disagreements with tenants regarding unit damages and the amount of security deposit refunded. Questioned Costs None Recommendation Management should monitor compliance with those procedures to ensure that tenant lease files are in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Programs. Auditor Noncompliance Code: R - Section 8 program administration Finding Resolution Status: In Process Views of Responsible Officials Management will review tenant files at the time of a tenant move out to ensure proper documentation is retained in the tenant file.