Audit 24060

FY End
2022-12-31
Total Expended
$6.22M
Findings
8
Programs
1
Year: 2022 Accepted: 2023-04-17

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
35326 2022-002 Significant Deficiency - E
35327 2022-003 Significant Deficiency Yes E
35328 2022-002 Significant Deficiency - E
35329 2022-003 Significant Deficiency Yes E
611768 2022-002 Significant Deficiency - E
611769 2022-003 Significant Deficiency Yes E
611770 2022-002 Significant Deficiency - E
611771 2022-003 Significant Deficiency Yes E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $501,085 Yes 2

Contacts

Name Title Type
HNBZXKNCD8K3 Jeannine Richman Auditee
6097811379 Heather Weber Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The Schedule includes the federal grant activity of the Corporation and is prepared on the accrual basisof accounting. The information in this Schedule is presented in accordance with the requirements ofUniform Guidance. Therefore, some amounts presented in this Schedule may differ from amountspresented in, or used in the preparation of, the financial statements. There were no pass-throughamounts to subrecipients for December 31, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 5717800.
Title: BASIS OF PRESENTATION Accounting Policies: The Schedule includes the federal grant activity of the Corporation and is prepared on the accrual basisof accounting. The information in this Schedule is presented in accordance with the requirements ofUniform Guidance. Therefore, some amounts presented in this Schedule may differ from amountspresented in, or used in the preparation of, the financial statements. There were no pass-throughamounts to subrecipients for December 31, 2022. 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 federalgrant activity of Pennsauken Lutheran Housing, Inc. (the Corporation) under programs of thefederal government for the year ended December 31, 2022. The information in the Schedule ispresented 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 theCorporation, it is not intended to and does not present the financial position, changes in net assets orcash flows of the Corporation.

Finding Details

Assistance List Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Pass-Through Entity: N/A Criteria: Under the HUD Occupancy Handbook, Chapter 6: Lease Requirements and Leasing Activities, within 30 days after the move-out date, the owner must either refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant's rights under state and local laws. Questioned Costs: None. Condition: One out of ten selected tenants who moved out during the year did not receive their security deposit refund check within the 30-day requirement. This was not a statistically valid sample. Context: We identified one tenant (for one out of ten selected tenants) that moved out during the year that did not receive their refund of their security deposit within the 30-day requirement. Pennsauken Lutheran Housing, Inc. HUD Project No. 035-EE020 Schedule of Findings and Questioned Costs Year Ended December 31, 2022 30 Effect: There was one tenant whose security deposit refund check was not received within the 30-day requirement. Cause: There was turnover at the property manager position and the property manager position remained vacant for several months of the year. Additionally, there were environmental issues that caused mold and destruction of certain files. Recommendation: We recommend the Corporation implement procedures to ensure that all security deposit refund checks are returned to tenants within the 30-day requirement.
Assistance List Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Pass-Through Entity: N/A Criteria: Under the HUD Occupancy Handbook, Chapter 3: Eligibility for Assistance and Occupancy, and under Chapter 7: Recertification, Unit Transfers and Gross Rent Changes, the Corporation must conduct a certification/recertification of family income and composition at least annually. The recertification anniversary date is the first day of the month in which the tenant moved into the property. As part of the certification and recertification processes owners must obtain the original signature of the head, co-head, spouse and all other adult members of the household on the HUD-50059 with the required data electronically generated by owner's (or service bureau's) software package. Owner representative must sign the HUD-50059 and provide the tenant with a copy. Questioned Costs: Undeterminable. Condition: One of ten selected tenants who needed a recertification during the year did not complete a timely recertification. One of ten selected tenants did not have support for their income listed on the HUD-50059 form. One of ten selected tenants did not have support to verify eligibility. One of ten selected tenants did not have a signed lease agreement. One of the ten selected tenants misrepresented income which resulted in a balance due to HUD. This was not a statistically valid sample. Pennsauken Lutheran Housing, Inc. HUD Project No. 035-EE020 Schedule of Findings and Questioned Costs Year Ended December 31, 2022 31 Context: We identified one tenant (out of ten selected) that needed a recertification completed during the year that did not complete the recertification timely. We identified one tenant (out of ten selected) that did not have the proper support for their listed income per the HUD-50059. We identified one tenant (out of ten selected) that did not have proper file retention and there was no support to verify tenant's eligibility. We identified one tenant (out of ten selected) that did not have the proper support for their signed lease agreement. We identified one tenant (out of ten selected) that had misrepresented income and therefore resulted in payments owed to HUD. Effect: There were tenants who lacked proper documentation for the resident to be assessed for initial eligibility or to maintain eligibility for the program. Cause: There was turnover at the property manager position and the property manager position remained vacant for several months of the year. Additionally, there were environmental issues that caused mold and destruction of certain files. Recommendation: We recommend the Corporation implement procedures over internal controls so that certifications and recertifications are completed timely with the accurate approvals and supported by documentation.
Assistance List Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Pass-Through Entity: N/A Criteria: Under the HUD Occupancy Handbook, Chapter 6: Lease Requirements and Leasing Activities, within 30 days after the move-out date, the owner must either refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant's rights under state and local laws. Questioned Costs: None. Condition: One out of ten selected tenants who moved out during the year did not receive their security deposit refund check within the 30-day requirement. This was not a statistically valid sample. Context: We identified one tenant (for one out of ten selected tenants) that moved out during the year that did not receive their refund of their security deposit within the 30-day requirement. Pennsauken Lutheran Housing, Inc. HUD Project No. 035-EE020 Schedule of Findings and Questioned Costs Year Ended December 31, 2022 30 Effect: There was one tenant whose security deposit refund check was not received within the 30-day requirement. Cause: There was turnover at the property manager position and the property manager position remained vacant for several months of the year. Additionally, there were environmental issues that caused mold and destruction of certain files. Recommendation: We recommend the Corporation implement procedures to ensure that all security deposit refund checks are returned to tenants within the 30-day requirement.
Assistance List Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Pass-Through Entity: N/A Criteria: Under the HUD Occupancy Handbook, Chapter 3: Eligibility for Assistance and Occupancy, and under Chapter 7: Recertification, Unit Transfers and Gross Rent Changes, the Corporation must conduct a certification/recertification of family income and composition at least annually. The recertification anniversary date is the first day of the month in which the tenant moved into the property. As part of the certification and recertification processes owners must obtain the original signature of the head, co-head, spouse and all other adult members of the household on the HUD-50059 with the required data electronically generated by owner's (or service bureau's) software package. Owner representative must sign the HUD-50059 and provide the tenant with a copy. Questioned Costs: Undeterminable. Condition: One of ten selected tenants who needed a recertification during the year did not complete a timely recertification. One of ten selected tenants did not have support for their income listed on the HUD-50059 form. One of ten selected tenants did not have support to verify eligibility. One of ten selected tenants did not have a signed lease agreement. One of the ten selected tenants misrepresented income which resulted in a balance due to HUD. This was not a statistically valid sample. Pennsauken Lutheran Housing, Inc. HUD Project No. 035-EE020 Schedule of Findings and Questioned Costs Year Ended December 31, 2022 31 Context: We identified one tenant (out of ten selected) that needed a recertification completed during the year that did not complete the recertification timely. We identified one tenant (out of ten selected) that did not have the proper support for their listed income per the HUD-50059. We identified one tenant (out of ten selected) that did not have proper file retention and there was no support to verify tenant's eligibility. We identified one tenant (out of ten selected) that did not have the proper support for their signed lease agreement. We identified one tenant (out of ten selected) that had misrepresented income and therefore resulted in payments owed to HUD. Effect: There were tenants who lacked proper documentation for the resident to be assessed for initial eligibility or to maintain eligibility for the program. Cause: There was turnover at the property manager position and the property manager position remained vacant for several months of the year. Additionally, there were environmental issues that caused mold and destruction of certain files. Recommendation: We recommend the Corporation implement procedures over internal controls so that certifications and recertifications are completed timely with the accurate approvals and supported by documentation.
Assistance List Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Pass-Through Entity: N/A Criteria: Under the HUD Occupancy Handbook, Chapter 6: Lease Requirements and Leasing Activities, within 30 days after the move-out date, the owner must either refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant's rights under state and local laws. Questioned Costs: None. Condition: One out of ten selected tenants who moved out during the year did not receive their security deposit refund check within the 30-day requirement. This was not a statistically valid sample. Context: We identified one tenant (for one out of ten selected tenants) that moved out during the year that did not receive their refund of their security deposit within the 30-day requirement. Pennsauken Lutheran Housing, Inc. HUD Project No. 035-EE020 Schedule of Findings and Questioned Costs Year Ended December 31, 2022 30 Effect: There was one tenant whose security deposit refund check was not received within the 30-day requirement. Cause: There was turnover at the property manager position and the property manager position remained vacant for several months of the year. Additionally, there were environmental issues that caused mold and destruction of certain files. Recommendation: We recommend the Corporation implement procedures to ensure that all security deposit refund checks are returned to tenants within the 30-day requirement.
Assistance List Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Pass-Through Entity: N/A Criteria: Under the HUD Occupancy Handbook, Chapter 3: Eligibility for Assistance and Occupancy, and under Chapter 7: Recertification, Unit Transfers and Gross Rent Changes, the Corporation must conduct a certification/recertification of family income and composition at least annually. The recertification anniversary date is the first day of the month in which the tenant moved into the property. As part of the certification and recertification processes owners must obtain the original signature of the head, co-head, spouse and all other adult members of the household on the HUD-50059 with the required data electronically generated by owner's (or service bureau's) software package. Owner representative must sign the HUD-50059 and provide the tenant with a copy. Questioned Costs: Undeterminable. Condition: One of ten selected tenants who needed a recertification during the year did not complete a timely recertification. One of ten selected tenants did not have support for their income listed on the HUD-50059 form. One of ten selected tenants did not have support to verify eligibility. One of ten selected tenants did not have a signed lease agreement. One of the ten selected tenants misrepresented income which resulted in a balance due to HUD. This was not a statistically valid sample. Pennsauken Lutheran Housing, Inc. HUD Project No. 035-EE020 Schedule of Findings and Questioned Costs Year Ended December 31, 2022 31 Context: We identified one tenant (out of ten selected) that needed a recertification completed during the year that did not complete the recertification timely. We identified one tenant (out of ten selected) that did not have the proper support for their listed income per the HUD-50059. We identified one tenant (out of ten selected) that did not have proper file retention and there was no support to verify tenant's eligibility. We identified one tenant (out of ten selected) that did not have the proper support for their signed lease agreement. We identified one tenant (out of ten selected) that had misrepresented income and therefore resulted in payments owed to HUD. Effect: There were tenants who lacked proper documentation for the resident to be assessed for initial eligibility or to maintain eligibility for the program. Cause: There was turnover at the property manager position and the property manager position remained vacant for several months of the year. Additionally, there were environmental issues that caused mold and destruction of certain files. Recommendation: We recommend the Corporation implement procedures over internal controls so that certifications and recertifications are completed timely with the accurate approvals and supported by documentation.
Assistance List Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Pass-Through Entity: N/A Criteria: Under the HUD Occupancy Handbook, Chapter 6: Lease Requirements and Leasing Activities, within 30 days after the move-out date, the owner must either refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant's rights under state and local laws. Questioned Costs: None. Condition: One out of ten selected tenants who moved out during the year did not receive their security deposit refund check within the 30-day requirement. This was not a statistically valid sample. Context: We identified one tenant (for one out of ten selected tenants) that moved out during the year that did not receive their refund of their security deposit within the 30-day requirement. Pennsauken Lutheran Housing, Inc. HUD Project No. 035-EE020 Schedule of Findings and Questioned Costs Year Ended December 31, 2022 30 Effect: There was one tenant whose security deposit refund check was not received within the 30-day requirement. Cause: There was turnover at the property manager position and the property manager position remained vacant for several months of the year. Additionally, there were environmental issues that caused mold and destruction of certain files. Recommendation: We recommend the Corporation implement procedures to ensure that all security deposit refund checks are returned to tenants within the 30-day requirement.
Assistance List Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Pass-Through Entity: N/A Criteria: Under the HUD Occupancy Handbook, Chapter 3: Eligibility for Assistance and Occupancy, and under Chapter 7: Recertification, Unit Transfers and Gross Rent Changes, the Corporation must conduct a certification/recertification of family income and composition at least annually. The recertification anniversary date is the first day of the month in which the tenant moved into the property. As part of the certification and recertification processes owners must obtain the original signature of the head, co-head, spouse and all other adult members of the household on the HUD-50059 with the required data electronically generated by owner's (or service bureau's) software package. Owner representative must sign the HUD-50059 and provide the tenant with a copy. Questioned Costs: Undeterminable. Condition: One of ten selected tenants who needed a recertification during the year did not complete a timely recertification. One of ten selected tenants did not have support for their income listed on the HUD-50059 form. One of ten selected tenants did not have support to verify eligibility. One of ten selected tenants did not have a signed lease agreement. One of the ten selected tenants misrepresented income which resulted in a balance due to HUD. This was not a statistically valid sample. Pennsauken Lutheran Housing, Inc. HUD Project No. 035-EE020 Schedule of Findings and Questioned Costs Year Ended December 31, 2022 31 Context: We identified one tenant (out of ten selected) that needed a recertification completed during the year that did not complete the recertification timely. We identified one tenant (out of ten selected) that did not have the proper support for their listed income per the HUD-50059. We identified one tenant (out of ten selected) that did not have proper file retention and there was no support to verify tenant's eligibility. We identified one tenant (out of ten selected) that did not have the proper support for their signed lease agreement. We identified one tenant (out of ten selected) that had misrepresented income and therefore resulted in payments owed to HUD. Effect: There were tenants who lacked proper documentation for the resident to be assessed for initial eligibility or to maintain eligibility for the program. Cause: There was turnover at the property manager position and the property manager position remained vacant for several months of the year. Additionally, there were environmental issues that caused mold and destruction of certain files. Recommendation: We recommend the Corporation implement procedures over internal controls so that certifications and recertifications are completed timely with the accurate approvals and supported by documentation.