FAC Explorer

Audit 23174

FY End
2022-12-31
Total Expended
$5.28M
Findings
2
Programs
1
Organization: Walnut Grove Non Profit Housing (WA)
Year: 2022 Accepted: 2023-09-28
Auditor: Loveridge Hunt & CO PLLC CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
25929 2022-001 - - E
602371 2022-001 - - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $5.06M Yes 1

Contacts

Name Title Type
S3B8P64HBMC8 Victor Caesar Auditee
3609926249 Ron Fechtner Auditor
No contacts on file

Notes to SEFA

Title: SECTION 202 CAPITAL ADVANCE 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 OMB Circular A-122 and Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. At December 31, 2022, Walnut Grove Non-Profit Housing had the following Section 202 capital advance fund which is presented within net assets with donor restrictions. The capital advance is also included in the federal expenditures presented. Program or Cluster Title: Supportive Housing for the Elderly (Section 202); Federal ALN:14.157; and Amount Outstanding: $5,061,200.
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 OMB Circular A-122 and Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Walnut Grove Non-Profit Housing (the Organization) under programs of 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 operation of the Organization, it is not intended to and does not present the financial position, changes in net assets (deficit), or cash flows of the Organization.

Finding Details

Finding 2022-001
S3800-010 Finding Reference Number: 2022-001 S3800-011 Title and Assistance Listing Number of Federal Program: 14.157 Supportive Housing for the Elderly (Section 202) S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: In process S3800-017 Information on Universe and Population Size: 65 tenant files S3800-018 Sample Size Information: 7 tenant files Sample size: 7 Dollar amount: $- S3800-019 Identification of Repeat Finding and Finding Reference Number: Not a repeat finding. S3800-020 Criteria: In accordance with eligibility and to determine whether total tenant rent payment were calculated in accordance with program requirements, the owner must correctly verify and calculate income during annual recertifications. Statutory or regulatory requirement on which the finding is based S3800-030 Statement of Condition: One of the tenant files selected for review did not perform the annual recertification for 2022. S3800-032 Cause: No annual recertification was done for one tenant file in 2022 due to staff turnover. S3800-033 Effect or Potential Effect and Perspective: Housing assistance may be over paying for tenant. Tenants may not be eligible as required. S3800-035 Auditor Non-Compliance Code: R - Section 8 program administration S3800-040 Questioned Costs: $364 S3800-045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800-012 Please identify the property(s) and associated questioned costs this finding applies to: Walnut Grove Apartments S3800-037 FHA/Contract Number: 126-EE045 S3800-050 Context: As noted above, the issue noted was found in 1 out of 7 files. S3800-080 Recommendation: Management and ownership should ensure that all tenant certifications are performed as required by implementing a secondary review of files. S3800-090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800-130 Response Indicator: Agree S3800-140 Completion Date: 9/30/2023 S3800-150 Response: Ownership agreed with the finding and has implemented a corrective action plan.
Finding 2022-001
S3800-010 Finding Reference Number: 2022-001 S3800-011 Title and Assistance Listing Number of Federal Program: 14.157 Supportive Housing for the Elderly (Section 202) S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: In process S3800-017 Information on Universe and Population Size: 65 tenant files S3800-018 Sample Size Information: 7 tenant files Sample size: 7 Dollar amount: $- S3800-019 Identification of Repeat Finding and Finding Reference Number: Not a repeat finding. S3800-020 Criteria: In accordance with eligibility and to determine whether total tenant rent payment were calculated in accordance with program requirements, the owner must correctly verify and calculate income during annual recertifications. Statutory or regulatory requirement on which the finding is based S3800-030 Statement of Condition: One of the tenant files selected for review did not perform the annual recertification for 2022. S3800-032 Cause: No annual recertification was done for one tenant file in 2022 due to staff turnover. S3800-033 Effect or Potential Effect and Perspective: Housing assistance may be over paying for tenant. Tenants may not be eligible as required. S3800-035 Auditor Non-Compliance Code: R - Section 8 program administration S3800-040 Questioned Costs: $364 S3800-045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800-012 Please identify the property(s) and associated questioned costs this finding applies to: Walnut Grove Apartments S3800-037 FHA/Contract Number: 126-EE045 S3800-050 Context: As noted above, the issue noted was found in 1 out of 7 files. S3800-080 Recommendation: Management and ownership should ensure that all tenant certifications are performed as required by implementing a secondary review of files. S3800-090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800-130 Response Indicator: Agree S3800-140 Completion Date: 9/30/2023 S3800-150 Response: Ownership agreed with the finding and has implemented a corrective action plan.