Audit 18072

FY End

2022-06-30

Total Expended

$1.33M

Findings

2

Programs

2

Organization: Oak Hill Apartments, Inc. (NC)

Year: 2022 Accepted: 2022-12-07

Auditor: Dean Dorton Allen Ford PLLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
12646	2022-001	Significant Deficiency	-	E
589088	2022-001	Significant Deficiency	-	E

ALN	Program	Spent	Major	Findings
14.181	Supportive Housing for Persons with Disabilities	$1.31M	Yes	1
14.195	Section 8 Housing Assistance Payments Program	$28,721	-	0

Contacts

Name	Title	Type
E8KHAE9NMB35	Everett McElveen	Auditee
9197549960	David Boyce	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Basis of PresentationThe accompanying schedule of expenditure of federal awards includes the federal award activity of Oak Hill Apartments and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirement 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 Oak Hill Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Oak Hill Apartments.2.Summary of Significant Accounting PoliciesExpenditures 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.3.Indirect Cost RateOak Hill Apartments has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.4.U.S. Department of Housing and Urban Development Loan ProgramOak Hill Apartments has received a U.S. Department of Housing and Urban Development capital advance under Section 811 of the National Housing Act. The CFDA Number 14.181 amount represents the outstanding loan balance at June 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1305100.

Finding Details

Finding 2022-001

Finding 2022-001 Condition: Updated HUD tenant assistance payments were not being updated in CASA?s system after recertification. The calculated payments during recertification were done correctly. Criteria: HUD tenant assistance payments are to be updated annually based on tenant recertifications. Effect: Incorrect HUD tenant assistance payments were being requested. Context: Population size is fourteen tenants. We tested four tenants who had recertifications during the year. On two tenants tested, the recertification was correctly calculated but the HUD tenant assistance payment was not updated to reflect the recertified amount. The amount of questioned costs for the year were $279. Cause: Due to personnel changes, the updated HUD tenant assistance payments were not being entered into CASA?s system. Recommendation: CASA should ensure better document the recertification and HUD tenant assistance payment process to ensure new staff are aware of all required procedures. Further, CASA should ensure adequate training is being provided to all new staff in this role. Views of Responsible Officials and Planned Corrective Actions: Personnel have now been properly trained on entering information after recertification occurs. Further, these procedures are now documented.

Finding 2022-001

Finding 2022-001 Condition: Updated HUD tenant assistance payments were not being updated in CASA?s system after recertification. The calculated payments during recertification were done correctly. Criteria: HUD tenant assistance payments are to be updated annually based on tenant recertifications. Effect: Incorrect HUD tenant assistance payments were being requested. Context: Population size is fourteen tenants. We tested four tenants who had recertifications during the year. On two tenants tested, the recertification was correctly calculated but the HUD tenant assistance payment was not updated to reflect the recertified amount. The amount of questioned costs for the year were $279. Cause: Due to personnel changes, the updated HUD tenant assistance payments were not being entered into CASA?s system. Recommendation: CASA should ensure better document the recertification and HUD tenant assistance payment process to ensure new staff are aware of all required procedures. Further, CASA should ensure adequate training is being provided to all new staff in this role. Views of Responsible Officials and Planned Corrective Actions: Personnel have now been properly trained on entering information after recertification occurs. Further, these procedures are now documented.