FAC Explorer

Audit 1515

FY End
2022-12-31
Total Expended
$8.46M
Findings
2
Programs
1
Organization: 1010 Senior Housing CORP (CA)
Year: 2022 Accepted: 2023-10-26
Auditor: Fogel Klein LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
794 2022-001 - - N
577236 2022-001 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $8.46M Yes 1

Contacts

Name Title Type
NAH3Z1UAGMV8 Debbi Friedman Auditee
8168613829 Joseph Fogel 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 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: 1010 Senior Housing Corporation, Villa Flores has not elected 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 1010 Senior Housing Corporation, Villa Flores under programs of the federal government for the year ended December 31, 2022. 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 1010 Senior Housing Corporation, Villa Flores, it is not intended to and does not present the financial position, changes in net assets or cash flows of 1010 Senior Housing Corporation, Villa Flores.
Title: Federally Funded and Insured Mortgages 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: 1010 Senior Housing Corporation, Villa Flores has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. 1010 Senior Housing Corporation, Villa Flores has received a US Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The mortgage balance at the beginning of the year is included in the federal expenditures presented in the Schedule. There were no additional loans received during the year. The balance of the loan outstanding as of December 31, 2022 is $8,093,500.

Finding Details

Finding 2022-001
Finding 2022-001: Supportive Housing for the Elderly Program: Replacement Reserve Account Questioned Costs: $228,163 Information on Universe and Population Size: Not Applicable Sample Size Information: Not Applicable Noncompliance Information: The Project's Replacement Reserve account was underfunded by the amount of $228,163. Condition: The Project switched management agents during the year. As part of the transition, all the old bank accounts were closed and the funds were transferred to the new management agent to open new bank accounts. The bank accounts were opened by the new management agent and at year end the Replacement Reserve account was underfunded by $228,163. This was detected and corrected in 2023 by management upon closing the 2022 books at year-end. Criteria: The Project's Regulatory Agreement, item 5A, requires the Project to establish and maintain a Replacement Reserve Account in a separate account. Page 38 Cause: The Management Agent upon assuming the management of the Project during 2022, received funds from many bank accounts which were closed by the old management agent. Management was in the process of reconciling all the old bank accounts. Upon closing the 2022 books, in the beginning of 2023, the management agent noted that the Replacement Reserve account was underfunded and funded the Replacement Reserve account to the correct amount. Effect or Potential Effect: The Replacement Reserve was underfunded at year-end. Recommendations: Management should reconcile the Replacement Reserve Account shortly after assuming management of the Project. Reporting Views of Responsible Officials: Management concurs with this finding and detected and corrected this finding upon reconciling the 2022 books at year-end.
Finding 2022-001
Finding 2022-001: Supportive Housing for the Elderly Program: Replacement Reserve Account Questioned Costs: $228,163 Information on Universe and Population Size: Not Applicable Sample Size Information: Not Applicable Noncompliance Information: The Project's Replacement Reserve account was underfunded by the amount of $228,163. Condition: The Project switched management agents during the year. As part of the transition, all the old bank accounts were closed and the funds were transferred to the new management agent to open new bank accounts. The bank accounts were opened by the new management agent and at year end the Replacement Reserve account was underfunded by $228,163. This was detected and corrected in 2023 by management upon closing the 2022 books at year-end. Criteria: The Project's Regulatory Agreement, item 5A, requires the Project to establish and maintain a Replacement Reserve Account in a separate account. Page 38 Cause: The Management Agent upon assuming the management of the Project during 2022, received funds from many bank accounts which were closed by the old management agent. Management was in the process of reconciling all the old bank accounts. Upon closing the 2022 books, in the beginning of 2023, the management agent noted that the Replacement Reserve account was underfunded and funded the Replacement Reserve account to the correct amount. Effect or Potential Effect: The Replacement Reserve was underfunded at year-end. Recommendations: Management should reconcile the Replacement Reserve Account shortly after assuming management of the Project. Reporting Views of Responsible Officials: Management concurs with this finding and detected and corrected this finding upon reconciling the 2022 books at year-end.