FAC Explorer

Audit 20246

FY End
2022-12-31
Total Expended
$6.18M
Findings
2
Programs
2
Organization: Senior Citizens Housing Development Corporation of Stonington (FL)
Year: 2022 Accepted: 2023-05-29
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22396 2022-001 - - E
598838 2022-001 - - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $5.68M Yes 0
14.157 Supportive Housing for the Elderly - Prac $509,409 Yes 1

Contacts

Name Title Type
CE1HDNUCFKC7 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 grant activity of Senior Citizens Housing Development Corporation of Stonington, HUD Project No. 017-EE004, 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 Senior Citizens Housing Development Corporation of Stonington, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Senior Citizens Housing Development Corporation of Stonington. 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: Senior Citizens Housing Development Corporation of Stonington has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Senior Citizens Housing Development Corporation of Stonington 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. Senior Citizens Housing Development Corporation of Stonington received no additional loans during the year. The balance of the capital advance outstanding as of December 31, 2022 is $5,675,200.

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: Seventy-nine tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require accurate and complete verification of a tenant?s income through supporting documentation prior to move-in. Once the income has been verified through the EIV system, it should be utilized in determining the accuracy of the tenant?s portion of rent on form HUD-50059. Statement of Condition: The Project used inaccurate income verification support for one tenant?s initial income upon move-in on October 13, 2022, which resulted in the tenant being undercharged $350 per month until EIV verification was received in February 2023. This resulted in a substantially higher income than originally entered on the initial form HUD-50059. Cause: The Project did not adhere to HUD regulations for initial eligibility and income verification. Effect or Potential Effect: The tenant underpaid rent for a few months, and the eligibility verification and cost of assistance may have been 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 have been adopted. Recommendation: The Project should implement procedures to ensure that tenant income utilized at move-in is accurate in determining the tenant?s monthly rent, and verification through the EIV system is completed in a timely manner. The Project should have made an immediate correction to form HUD-50059 upon receiving the correct income from the EIV system. Response Indicator: Agree. Completion Date: 2/2/2023 Response: Training on income calculations and including the double checking of calculations more than once for accuracy will be conducted with managers. In addition, compliance has created an income calculation worksheet with formulas where managers can enter data and the worksheet will complete the calculations.
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: Seventy-nine tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require accurate and complete verification of a tenant?s income through supporting documentation prior to move-in. Once the income has been verified through the EIV system, it should be utilized in determining the accuracy of the tenant?s portion of rent on form HUD-50059. Statement of Condition: The Project used inaccurate income verification support for one tenant?s initial income upon move-in on October 13, 2022, which resulted in the tenant being undercharged $350 per month until EIV verification was received in February 2023. This resulted in a substantially higher income than originally entered on the initial form HUD-50059. Cause: The Project did not adhere to HUD regulations for initial eligibility and income verification. Effect or Potential Effect: The tenant underpaid rent for a few months, and the eligibility verification and cost of assistance may have been 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 have been adopted. Recommendation: The Project should implement procedures to ensure that tenant income utilized at move-in is accurate in determining the tenant?s monthly rent, and verification through the EIV system is completed in a timely manner. The Project should have made an immediate correction to form HUD-50059 upon receiving the correct income from the EIV system. Response Indicator: Agree. Completion Date: 2/2/2023 Response: Training on income calculations and including the double checking of calculations more than once for accuracy will be conducted with managers. In addition, compliance has created an income calculation worksheet with formulas where managers can enter data and the worksheet will complete the calculations.