Audit 18705

FY End

2022-12-31

Total Expended

$3.26M

Findings

4

Programs

2

Organization: Mm Iii, Inc. Operating As Mayfield Manor III (FL)

Year: 2022 Accepted: 2023-08-01

Auditor: Bellows Associates P A

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
20081	2022-001	-	-	N
20082	2022-002	-	-	E
596523	2022-001	-	-	N
596524	2022-002	-	-	E

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly - Capital Advance	$3.08M	Yes	0
14.157	Supportive Housing for the Elderly - Prac	$178,133	Yes	2

Contacts

Name	Title	Type
JFCJJBDJLAV3	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 MM III, Inc., HUD Project No. 042-EE132, and is presented on the accrual basis of accounting. Thei 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 MM III, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of MM III, 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: MM III, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. MM III, Inc. has received a U.S. Department of Housing and Urban Development 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. MM III, Inc. received no additional loans during the year. The balance of the capital advance outstanding as of December 31,2022 was $3,084,301.

Finding Details

Finding 2022-001

FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, ALN 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 and short-term loans taken from the replacement reserve via HUD approved 9250s. 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. Response Indicator: Agree. Completion Date: 11/10/2022 Response: Compliance Department is now monitoring and tracking PRAC contract renewals for properties. Going forward reminders and follow up to deadlines will be conducted to ensure the contract renewal is completed. -

Finding 2022-002

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Forty-eight tenants. Sample Size Information: Five tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires all tenants to have income verified through the use of Enterprise Income Verification (EIV) reports with the corresponding documentation maintained. Statement of Condition: Of the tenant files selected, the Project did not complete nor retain timely verification of income through the use of EIV reports for three tenants. Cause: The Project did not perform/retain timely income verification. Effect or Potential Effect: Eligibility verification not performed nor retained in accordance with HUD regulations. Assistance 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 implement procedures to ensure the verification of tenant income through the EIV system in a timely manner and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Management has conducted training on EIV and the importance of meeting the deadlines as well as maintaining EIV reports in tenant files. -

Finding 2022-001

FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, ALN 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 and short-term loans taken from the replacement reserve via HUD approved 9250s. 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. Response Indicator: Agree. Completion Date: 11/10/2022 Response: Compliance Department is now monitoring and tracking PRAC contract renewals for properties. Going forward reminders and follow up to deadlines will be conducted to ensure the contract renewal is completed. -

Finding 2022-002

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Forty-eight tenants. Sample Size Information: Five tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires all tenants to have income verified through the use of Enterprise Income Verification (EIV) reports with the corresponding documentation maintained. Statement of Condition: Of the tenant files selected, the Project did not complete nor retain timely verification of income through the use of EIV reports for three tenants. Cause: The Project did not perform/retain timely income verification. Effect or Potential Effect: Eligibility verification not performed nor retained in accordance with HUD regulations. Assistance 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 implement procedures to ensure the verification of tenant income through the EIV system in a timely manner and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Management has conducted training on EIV and the importance of meeting the deadlines as well as maintaining EIV reports in tenant files. -