Audit 17293

FY End

2022-12-31

Total Expended

$3.08M

Findings

4

Programs

2

Organization: Ncsc/usa Housing Development Corporation Two (FL)

Year: 2022 Accepted: 2023-04-10

Auditor: Bellows Associates P A

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
12578	2022-001	-	-	N
12579	2022-002	-	Yes	E
589020	2022-001	-	-	N
589021	2022-002	-	Yes	E

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly - Capital Advance	$2.80M	Yes	0
14.157	Supportive Housing for the Elderly - Prac	$280,929	Yes	2

Contacts

Name	Title	Type
QW9HFCF6JDL3	Irene Phillips	Auditee
9548359200	Jennifer R. Koffman	Auditor
No contacts on file

Notes to SEFA

Title: NOTE C U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE Accounting Policies: NOTE A BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal award activity of NCSC/USA Housing Development Corporation Two, operating as I.W. Abel Place, HUD Project No.033-EH302, 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 NCSC/USA Housing Development Corporation Two, it is not intended to and does not present the financial position, changes in net assets, or cash flows of NCSC/USA Housing Development Corporation Two. 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: NCSC/USA Housing Development Corporation Two has elected not to use the 10-percent de minimis indirect cost rateallowed under the Uniform Guidance. NCSC/USA Housing Development Corporation Two has received a HUD capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. NCSC/USA Housing Development Corporation Two received no additional loans during the year. The balance of the capital advance outstanding as of December 31, 2022 was $2,800,200.

Finding Details

Finding 2022-001

FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed 120 days prior to the PRAC expiration date. Statement of Condition: The Project did not complete the renewal process 120 days prior to the PRAC expiration date. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in the delay of HUD funding. Effect or Potential Effect: The Project is not in compliance with HUD regulations for timely renewal of PRAC contract resulting in delayed receipt of HAP funds. Auditor Non-Compliance Code: R ? Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding occurs. Response Indicator: Agree. Completion Date: 05/18/2022 Response: Staff is going to be trained on the proper procedures to follow for the PRAC contract renewal process. This will include meeting deadlines for submission to HUD. As of March 2023 Compliance created a spreadsheet of dates when contract renewals are due. Compliance will be monitoring this process and will be making monthly contacts to the Community Manager and Regional Property Manager to ensure deadlines are met.

Finding 2022-002

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-one tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001 Criteria: HUD regulation requires timely verification of tenant?s current and initial income through the use of Enterprise Income Verification (EIV) reports. In addition, live-in aides must pass a criminal background check. Statement of Condition: The Project did not perform and/or maintain the initial EIVs for four tenants, and a background check was not performed for a live-in aide. Cause: The Project did not perform timely income verification nor maintain appropriate tenant eligibility documentation required by HUD, and a background check was not performed for a live-in aide. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency may be disallowed. Auditor Non-Compliance Code: R ? Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should verify initial tenant income through the EIV system in a timely manner and ensure all required background checks are performed prior to a tenant moving in. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Managers have been retrained on procedures for using the EIV system to verify tenant income and to perform background checks timely. Compliance will conduct periodic checks to see if reports are pulled and maintained in the tenant file, as required.

Finding 2022-001

FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed 120 days prior to the PRAC expiration date. Statement of Condition: The Project did not complete the renewal process 120 days prior to the PRAC expiration date. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in the delay of HUD funding. Effect or Potential Effect: The Project is not in compliance with HUD regulations for timely renewal of PRAC contract resulting in delayed receipt of HAP funds. Auditor Non-Compliance Code: R ? Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding occurs. Response Indicator: Agree. Completion Date: 05/18/2022 Response: Staff is going to be trained on the proper procedures to follow for the PRAC contract renewal process. This will include meeting deadlines for submission to HUD. As of March 2023 Compliance created a spreadsheet of dates when contract renewals are due. Compliance will be monitoring this process and will be making monthly contacts to the Community Manager and Regional Property Manager to ensure deadlines are met.

Finding 2022-002

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-one tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001 Criteria: HUD regulation requires timely verification of tenant?s current and initial income through the use of Enterprise Income Verification (EIV) reports. In addition, live-in aides must pass a criminal background check. Statement of Condition: The Project did not perform and/or maintain the initial EIVs for four tenants, and a background check was not performed for a live-in aide. Cause: The Project did not perform timely income verification nor maintain appropriate tenant eligibility documentation required by HUD, and a background check was not performed for a live-in aide. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency may be disallowed. Auditor Non-Compliance Code: R ? Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should verify initial tenant income through the EIV system in a timely manner and ensure all required background checks are performed prior to a tenant moving in. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Managers have been retrained on procedures for using the EIV system to verify tenant income and to perform background checks timely. Compliance will conduct periodic checks to see if reports are pulled and maintained in the tenant file, as required.