FAC Explorer

Audit 23864

FY End
2022-11-20
Total Expended
$3.57M
Findings
2
Programs
2
Organization: Heritage Place, Inc. (ID)
Year: 2022 Accepted: 2023-05-09
Auditor: Harris CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
29465 2022-001 Significant Deficiency - N
605907 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.66M Yes 0
14.182 Section 8 New Construction and Substantial Rehabilitation $905,939 - 1

Contacts

Name Title Type
ZKDBCQ3KZ6D3 Ann Johnson Auditee
2086648119 Troy Earl Auditor
No contacts on file

Notes to SEFA

Title: NOTE B- LOAN/LOAN GUARANTEE OUTSTANDING BALANCE 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 UNIFORM GUIDANCE, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. HERITAGE PLACE, INC. DBA ORCHARD RIDGE INDEPENDENT LIVING HAS ELECTED NOT TO USE THE 10-PERCENT DE MINIMIS INDIRECT COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. HERITAGE PLACE, INC. DBA ORCHARD RIDGE INDEPENDENT LIVING HAS RECEIVED A U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT DIRECT LOAN UNDER SECTION 202 OF THE NATIONAL HOUSING ACT. THE LOAN BALANCE OUTSTANDING AT THE BEGINNING OF THE PERIOD IS INCLUDED IN THE FEDERAL EXPENDITURES PRESENTED IN THE SCHEDULE. HERITAGE PLACE, INC. DBA ORCHARD RIDGE INDEPENDENT LIVING RECEIVED NO ADDITIONAL LOANS DURING THE PERIOD. THE BALANCE OF THE LOAN OUTSTANDING AT NOVEMBER 20, 2022 CONSISTS OF: SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - BALANCES OUTSTANDING AT THE END OF THE AUDIT PERIOD WERE 2586964.
Title: NOTE A- 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 UNIFORM GUIDANCE, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. HERITAGE PLACE, INC. DBA ORCHARD RIDGE INDEPENDENT LIVING HAS ELECTED NOT TO USE THE 10-PERCENT DE MINIMIS INDIRECT COST RATE ALLOWED UNDER THE 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 INCLUDES THE FEDERAL ASSISTANCE PROGRAMS OF HERITAGE PLACE, INC. DBA ORCHARD RIDGE INDEPENDENT LIVING 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 HERITAGE PLACE, INC. DBA ORCHARD RIDGE INDEPENDENT LIVING, IT IS NOT INTENDED TO AND DOES NOT PRESENT THE FINANCIAL POSITION, CHANGES IN NET ASSETS OR CASH FLOWS OF HERITAGE PLACE, INC. DBA ORCHARD RIDGE INDEPENDENT LIVING

Finding Details

Finding 2022-001
DESCRIPTION OF FINDING: THE HUD REGULATORY AGREEMENTS REQUIRES THE PROJECT TO MAINTAIN A TENANT SELECTION PLAN, WHICH STATES THAT ACCEPTED RESIDENTS BE SELECTED FROM A WAITING LIST. ONE RESIDENT APPLICATION WAS ACCEPTED DURING THE PERIOD OUTSIDE OF THE WAITING LIST. EFFECT: OUT OF COMPLIANCE WITH THE HUD REGULATORY AGREEMENT. RECOMMENDATIONS: WE RECOMMEND THAT THE PROJECT DESIGN AND IMPLEMENT SAFEGUARDS TO PREVENT FUTURE APPLICANTS FROM BYPASSING THE WAITING LIST. MANAGEMENT?S RESPONSE: THE ERROR OCCURRED DURING A TIME OF STAFF TRANSITION. THE NEW STAFF PERSON WAS NOT ABLE TO PERFORM HER DUTIES AND SHE WAS TERMINATED. WE QUICKLY HIRED FROM WITHIN, AUDITED OUR FILES AND HAVE CORRECTED ALL OF THE ERRORS FROM THE PREVIOUS EMPLOYEE.
Finding 2022-001
DESCRIPTION OF FINDING: THE HUD REGULATORY AGREEMENTS REQUIRES THE PROJECT TO MAINTAIN A TENANT SELECTION PLAN, WHICH STATES THAT ACCEPTED RESIDENTS BE SELECTED FROM A WAITING LIST. ONE RESIDENT APPLICATION WAS ACCEPTED DURING THE PERIOD OUTSIDE OF THE WAITING LIST. EFFECT: OUT OF COMPLIANCE WITH THE HUD REGULATORY AGREEMENT. RECOMMENDATIONS: WE RECOMMEND THAT THE PROJECT DESIGN AND IMPLEMENT SAFEGUARDS TO PREVENT FUTURE APPLICANTS FROM BYPASSING THE WAITING LIST. MANAGEMENT?S RESPONSE: THE ERROR OCCURRED DURING A TIME OF STAFF TRANSITION. THE NEW STAFF PERSON WAS NOT ABLE TO PERFORM HER DUTIES AND SHE WAS TERMINATED. WE QUICKLY HIRED FROM WITHIN, AUDITED OUR FILES AND HAVE CORRECTED ALL OF THE ERRORS FROM THE PREVIOUS EMPLOYEE.