Audit 1377

FY End
2023-01-31
Total Expended
$4.96M
Findings
4
Programs
1
Year: 2023 Accepted: 2023-10-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
734 2023-001 Significant Deficiency - E
735 2023-001 Significant Deficiency - E
577176 2023-001 Significant Deficiency - E
577177 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $422,594 Yes 1

Contacts

Name Title Type
JJRUKH5WHBR8 Christopher Purcell Auditee
5622575100 Matt Catlin Auditor
No contacts on file

Notes to SEFA

Title: Note 3 Accounting Policies: The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Corporation has elected to not use the 10% de minimis cost rate. The balance of the HUD Section 202 capital advance at January 31, 2023 is $4,537,100.

Finding Details

Assistance Listing title and number (federal award identification and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 114-EE052 and 1999) Auditor non-compliance code: R – Section 8 Program Administration Finding resolution status: Resolved Universe population size: 74 residents Sample size information: 8 resident files Statistically valid sample: Yes Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of Condition 2023-001 (Assistance Listing 14.157): During the year ended January 31, 2023, 3 of the move-out resident files selected for testing under the Compliance Supplement were missing necessary documents required by the PRAC and HUD Handbook 4350.3. Criteria: In accordance with the Project Rental Assistance Contract ("PRAC") and HUD Handbook 4350.3, the Property must retain EIV reports, resident provided documentation, third party verification, and related supporting documentation in the resident file for the term of the tenancy plus three years. Effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4350.3. Current, future, and potentially prior funding under the PRAC could be impacted as a result. Cause: The prior property manager discarded the selected resident files before the end of the document retention period. Recommendation: Management should ensure that all resident files are maintained at the site for each resident of the Property in accordance with the HUD Handbook 4350.3. Completion date: May 12, 2023 Management Response: Management agrees with the recommendation and will ensure that resident files are retained in accordance with the HUD Handbook 4350.3. Management will review and update all resident files as necessary to ensure the Property is in compliance.
Assistance Listing title and number (federal award identification and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 114-EE052 and 1999) Auditor non-compliance code: R – Section 8 Program Administration Finding resolution status: Resolved Universe population size: 74 residents Sample size information: 8 resident files Statistically valid sample: Yes Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of Condition 2023-001 (Assistance Listing 14.157): During the year ended January 31, 2023, 3 of the move-out resident files selected for testing under the Compliance Supplement were missing necessary documents required by the PRAC and HUD Handbook 4350.3. Criteria: In accordance with the Project Rental Assistance Contract ("PRAC") and HUD Handbook 4350.3, the Property must retain EIV reports, resident provided documentation, third party verification, and related supporting documentation in the resident file for the term of the tenancy plus three years. Effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4350.3. Current, future, and potentially prior funding under the PRAC could be impacted as a result. Cause: The prior property manager discarded the selected resident files before the end of the document retention period. Recommendation: Management should ensure that all resident files are maintained at the site for each resident of the Property in accordance with the HUD Handbook 4350.3. Completion date: May 12, 2023 Management Response: Management agrees with the recommendation and will ensure that resident files are retained in accordance with the HUD Handbook 4350.3. Management will review and update all resident files as necessary to ensure the Property is in compliance.
Assistance Listing title and number (federal award identification and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 114-EE052 and 1999) Auditor non-compliance code: R – Section 8 Program Administration Finding resolution status: Resolved Universe population size: 74 residents Sample size information: 8 resident files Statistically valid sample: Yes Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of Condition 2023-001 (Assistance Listing 14.157): During the year ended January 31, 2023, 3 of the move-out resident files selected for testing under the Compliance Supplement were missing necessary documents required by the PRAC and HUD Handbook 4350.3. Criteria: In accordance with the Project Rental Assistance Contract ("PRAC") and HUD Handbook 4350.3, the Property must retain EIV reports, resident provided documentation, third party verification, and related supporting documentation in the resident file for the term of the tenancy plus three years. Effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4350.3. Current, future, and potentially prior funding under the PRAC could be impacted as a result. Cause: The prior property manager discarded the selected resident files before the end of the document retention period. Recommendation: Management should ensure that all resident files are maintained at the site for each resident of the Property in accordance with the HUD Handbook 4350.3. Completion date: May 12, 2023 Management Response: Management agrees with the recommendation and will ensure that resident files are retained in accordance with the HUD Handbook 4350.3. Management will review and update all resident files as necessary to ensure the Property is in compliance.
Assistance Listing title and number (federal award identification and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 114-EE052 and 1999) Auditor non-compliance code: R – Section 8 Program Administration Finding resolution status: Resolved Universe population size: 74 residents Sample size information: 8 resident files Statistically valid sample: Yes Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of Condition 2023-001 (Assistance Listing 14.157): During the year ended January 31, 2023, 3 of the move-out resident files selected for testing under the Compliance Supplement were missing necessary documents required by the PRAC and HUD Handbook 4350.3. Criteria: In accordance with the Project Rental Assistance Contract ("PRAC") and HUD Handbook 4350.3, the Property must retain EIV reports, resident provided documentation, third party verification, and related supporting documentation in the resident file for the term of the tenancy plus three years. Effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4350.3. Current, future, and potentially prior funding under the PRAC could be impacted as a result. Cause: The prior property manager discarded the selected resident files before the end of the document retention period. Recommendation: Management should ensure that all resident files are maintained at the site for each resident of the Property in accordance with the HUD Handbook 4350.3. Completion date: May 12, 2023 Management Response: Management agrees with the recommendation and will ensure that resident files are retained in accordance with the HUD Handbook 4350.3. Management will review and update all resident files as necessary to ensure the Property is in compliance.