FAC Explorer

Audit 24194

FY End
2022-12-31
Total Expended
$4.98M
Findings
2
Programs
2
Organization: Tuscan Brotherhood Homes Ii, Inc. (CT)
Year: 2022 Accepted: 2023-09-28
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
21637 2022-001 Significant Deficiency - E
598079 2022-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.134 Mortgage Insurance_rental Housing $3.94M Yes 0
14.182 Section 8 New Construction and Substantial Rehabilitation $1.04M Yes 1

Contacts

Name Title Type
JHR8ZJ1N5ZQ7 Kimalee Williams Auditee
8605285000 Patricia McGowan Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, 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: Tuscan Brotherhood Homes II, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of Tuscan Brotherhood Homes II, Inc., HUD Project No. 017-11158, under programs of the 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 operations of Tuscan Brotherhood Homes II, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Tuscan Brotherhood Homes II, Inc. For the year ended December 31, 2022, no awards were passed through to subrecipients.
Title: U.S. Department of Housing and Urban Development loan program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, 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: Tuscan Brotherhood Homes II, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Tuscan Brotherhood Homes II, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 207 pursuant to section 223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Tuscan Brotherhood Homes II, Inc. received no additional advances during the year. The balance of the loan outstanding at December 31, 2022, consists of the following: Federal Assistance Listing Number: 14.134; Program Name: Mortgage Insurance Rental Housing; Outstanding Balance at December 31, 2022: $3,833,696

Finding Details

Finding 2022-001
Department of Housing and Urban Development Finding No. 2022-001; Section 8 New Construction and Substantial Rehabilitation, Assistance Listing Number 14.182 Statement of Condition In connection with our lease file review, we noted the following deficiencies: The Enterprise Income Verification (EIV) form in the tenant's file for 2 out of 15 tenants tested did not have documentation in their lease file that their income was verified. The procedures applied to a sample of 1 out of 2 tenants tested did not have move out inspections in their lease files. The procedures applied to a sample of 1 out of 15 tenants tested did not have a signed HUD Form 50059 in their lease files. Cause Management's policies with respect to income verification, move out inspections, and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for income verification, move out inspections, and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Recommendations Management should establish procedures and monitor compliance with those procedures to insure that tenant's income is properly verified and tenant lease files are being maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration Finding Resolution: In process Reporting Views of Responsible Officials The Organization agrees with the finding and management will implement and strengthen internal controls over compliance and tenant lease files.
Finding 2022-001
Department of Housing and Urban Development Finding No. 2022-001; Section 8 New Construction and Substantial Rehabilitation, Assistance Listing Number 14.182 Statement of Condition In connection with our lease file review, we noted the following deficiencies: The Enterprise Income Verification (EIV) form in the tenant's file for 2 out of 15 tenants tested did not have documentation in their lease file that their income was verified. The procedures applied to a sample of 1 out of 2 tenants tested did not have move out inspections in their lease files. The procedures applied to a sample of 1 out of 15 tenants tested did not have a signed HUD Form 50059 in their lease files. Cause Management's policies with respect to income verification, move out inspections, and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for income verification, move out inspections, and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Recommendations Management should establish procedures and monitor compliance with those procedures to insure that tenant's income is properly verified and tenant lease files are being maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration Finding Resolution: In process Reporting Views of Responsible Officials The Organization agrees with the finding and management will implement and strengthen internal controls over compliance and tenant lease files.