FAC Explorer

Audit 14019

FY End
2023-09-30
Total Expended
$2.10M
Findings
12
Programs
1
Organization: Kearsarge Elderly Housing, Inc. (NH)
Year: 2023 Accepted: 2024-01-27
Auditor: Leone McDonnell & Roberts P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
10370 2023-001 Significant Deficiency - P
10371 2023-002 Significant Deficiency - B
10372 2023-001 Significant Deficiency - P
10373 2023-002 Significant Deficiency - B
10374 2023-003 Significant Deficiency - P
10375 2023-003 Significant Deficiency - P
586812 2023-001 Significant Deficiency - P
586813 2023-002 Significant Deficiency - B
586814 2023-001 Significant Deficiency - P
586815 2023-002 Significant Deficiency - B
586816 2023-003 Significant Deficiency - P
586817 2023-003 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.86M Yes 3

Contacts

Name Title Type
CRG6EV73J4D3 Jill Lesmerises Auditee
6032253295 Shauna Brown Auditor
No contacts on file

Notes to SEFA

Title: NOTE C: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: NOTE A: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards includes the federal award activity of Kearsarge Elderly Housing, Inc., HUD Project No. 024-EH203, and is presented on the accrual basis of accounting. 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 Kearsarge Elderly Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Kearsarge Elderly Housing, Inc. NOTE B: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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: Kearsarge Elderly Housing, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE C: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM: Kearsarge Elderly Housing, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Kearsarge Elderly Housing, Inc. received no additional loans during the year. The balance of the loan outstanding at September 30, 2023 consists of: 14.157 Section 202 Capital Advance $1,858,100

Finding Details

Finding 2023-001
Finding resolution status: Resolved Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner. Repeat finding: Not a repeat finding Condition: HUD forms must be certified by an authorized user. Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to. Effect: The forms were not certified by the correct individual. Context: Auditor reviewed source documents noting incorrect certifier. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Finding 2023-002
Finding resolution status: In-Process Information on universe: Internal Control testing Sample size: Six employees selected for internal control testing. Repeat finding: 2022-002 Condition: Additional detail, documentation and approval/oversight is needed on some of time sheets for allocation to projects. Criteria: All allocable time should have sufficient detail of duties performed and approvals. Effect: Without stronger controls around allocations, improper allocation could occur. Context: Auditor selected timesheets for payroll control testing. Cause: Lack of policy surrounding time reporting. Recommendation: Job duties should be documented for each position and a policy should be implemented to ensure all time sheets detail out the duties performed.
Finding 2023-001
Finding resolution status: Resolved Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner. Repeat finding: Not a repeat finding Condition: HUD forms must be certified by an authorized user. Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to. Effect: The forms were not certified by the correct individual. Context: Auditor reviewed source documents noting incorrect certifier. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Finding 2023-002
Finding resolution status: In-Process Information on universe: Internal Control testing Sample size: Six employees selected for internal control testing. Repeat finding: 2022-002 Condition: Additional detail, documentation and approval/oversight is needed on some of time sheets for allocation to projects. Criteria: All allocable time should have sufficient detail of duties performed and approvals. Effect: Without stronger controls around allocations, improper allocation could occur. Context: Auditor selected timesheets for payroll control testing. Cause: Lack of policy surrounding time reporting. Recommendation: Job duties should be documented for each position and a policy should be implemented to ensure all time sheets detail out the duties performed.
Finding 2023-003
Finding resolution status: In-Process Information on universe/Sample size: Observations during substantive testing Repeat finding: Not a repeat finding Condition: Vacancies and invoice processing experienced delays during the year. Criteria: All units should be turned over in a timely manner and all invoices should be paid timely. Effect: Units were vacant longer than necessary and late fees were assessed on invoices. Context: Auditor noted during testing that vacancies increased due to several units being vacant for a significant amount of time. Auditor also noted late fees assessed on invoices due to delays in processing invoices. Cause: Staff turnover. Recommendation: Management should design and follow policies related to timely completing all management agent tasks regardless of staffing.
Finding 2023-003
Finding resolution status: In-Process Information on universe/Sample size: Observations during substantive testing Repeat finding: Not a repeat finding Condition: Vacancies and invoice processing experienced delays during the year. Criteria: All units should be turned over in a timely manner and all invoices should be paid timely. Effect: Units were vacant longer than necessary and late fees were assessed on invoices. Context: Auditor noted during testing that vacancies increased due to several units being vacant for a significant amount of time. Auditor also noted late fees assessed on invoices due to delays in processing invoices. Cause: Staff turnover. Recommendation: Management should design and follow policies related to timely completing all management agent tasks regardless of staffing.
Finding 2023-001
Finding resolution status: Resolved Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner. Repeat finding: Not a repeat finding Condition: HUD forms must be certified by an authorized user. Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to. Effect: The forms were not certified by the correct individual. Context: Auditor reviewed source documents noting incorrect certifier. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Finding 2023-002
Finding resolution status: In-Process Information on universe: Internal Control testing Sample size: Six employees selected for internal control testing. Repeat finding: 2022-002 Condition: Additional detail, documentation and approval/oversight is needed on some of time sheets for allocation to projects. Criteria: All allocable time should have sufficient detail of duties performed and approvals. Effect: Without stronger controls around allocations, improper allocation could occur. Context: Auditor selected timesheets for payroll control testing. Cause: Lack of policy surrounding time reporting. Recommendation: Job duties should be documented for each position and a policy should be implemented to ensure all time sheets detail out the duties performed.
Finding 2023-001
Finding resolution status: Resolved Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner. Repeat finding: Not a repeat finding Condition: HUD forms must be certified by an authorized user. Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to. Effect: The forms were not certified by the correct individual. Context: Auditor reviewed source documents noting incorrect certifier. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Finding 2023-002
Finding resolution status: In-Process Information on universe: Internal Control testing Sample size: Six employees selected for internal control testing. Repeat finding: 2022-002 Condition: Additional detail, documentation and approval/oversight is needed on some of time sheets for allocation to projects. Criteria: All allocable time should have sufficient detail of duties performed and approvals. Effect: Without stronger controls around allocations, improper allocation could occur. Context: Auditor selected timesheets for payroll control testing. Cause: Lack of policy surrounding time reporting. Recommendation: Job duties should be documented for each position and a policy should be implemented to ensure all time sheets detail out the duties performed.
Finding 2023-003
Finding resolution status: In-Process Information on universe/Sample size: Observations during substantive testing Repeat finding: Not a repeat finding Condition: Vacancies and invoice processing experienced delays during the year. Criteria: All units should be turned over in a timely manner and all invoices should be paid timely. Effect: Units were vacant longer than necessary and late fees were assessed on invoices. Context: Auditor noted during testing that vacancies increased due to several units being vacant for a significant amount of time. Auditor also noted late fees assessed on invoices due to delays in processing invoices. Cause: Staff turnover. Recommendation: Management should design and follow policies related to timely completing all management agent tasks regardless of staffing.
Finding 2023-003
Finding resolution status: In-Process Information on universe/Sample size: Observations during substantive testing Repeat finding: Not a repeat finding Condition: Vacancies and invoice processing experienced delays during the year. Criteria: All units should be turned over in a timely manner and all invoices should be paid timely. Effect: Units were vacant longer than necessary and late fees were assessed on invoices. Context: Auditor noted during testing that vacancies increased due to several units being vacant for a significant amount of time. Auditor also noted late fees assessed on invoices due to delays in processing invoices. Cause: Staff turnover. Recommendation: Management should design and follow policies related to timely completing all management agent tasks regardless of staffing.