Audit 25678

FY End

2022-06-30

Total Expended

$2.23M

Findings

4

Programs

3

Organization: Ehdoc Teamsters Residences, Inc. (FL)

Year: 2022 Accepted: 2023-03-01

Auditor: Bellows Associates P A

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
30716	2022-001	-	-	N
30717	2022-002	-	-	E
607158	2022-001	-	-	N
607159	2022-002	-	-	E

ALN	Program	Spent	Major	Findings
14.155	Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects	$1.87M	Yes	2
14.195	Section 8 Housing Assistance Payments Program	$358,682	-	0
14.191	Multifamily Housing Service Coordinators	$991	-	0

Contacts

Name	Title	Type
RULBZ7SNLMA8	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 REFINANCE LOAN Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of EHDOC Teamsters Residences, Inc., HUD Project 042-11155, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title2 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 EHDOC Teamsters Residences, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of EHDOC Teamsters Residences, Inc. 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: EHDOC Teamsters Residences, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. EHDOC Teamsters Residences, Inc. has received a HUD mortgage insurance for the refinancing of existing multifamily housing projects under Section 207/223(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. EHDOC Teamsters Residences, Inc. received no additional loans during the year. The balance of the loan outstanding as of June 30, 2022 was $1,831,618.

Finding Details

Finding 2022-001

FINDING No. 2022-001: Section 207/223(f) Mortgage Refinancing, CFDA 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-seven tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires annual unit inspections performed in a timely manner with the corresponding documentation maintained. Statement of Condition: The Project did not perform and/or maintain move-in unit inspections for two tenants. Cause: The Project did not conduct and/or maintain the move-in unit inspections. Effect or Potential Effect: Unable to determine and assess whether the property has sustained any damage that require repairs. Auditor Non-Compliance Code: R ? Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendation will be adopted. Recommendation: The Project should perform annual unit inspections and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 6/30/2023 Response: This was an oversight by the former community manager. Current staff has been trained on HUD requirements including move-in inspections.

Finding 2022-002

FINDING No. 2022-002: Section 207/223(f) Mortgage Refinancing, CFDA 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-seven tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires that new tenant?s income be reviewed via Electronic Income Verification (EIV) within 90 days after the move-in information is transmitted to Tenant Rental Assistance Certification System (TRACS) to confirm/validate the income reported by the household. Statement of Condition: The Project did not obtain income verification via EIV within 90 days after move-in for eight tenants. Cause: The Project did not perform timely income verification nor maintain appropriate tenant eligibility documentation required by HUD. Effect or Potential Effect: Unable to verify initial eligibility and cost of assistance may be 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 recommendation will be adopted. Recommendation: The Project should verify initial tenant income through the EIV system in a timely manner and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 6/30/2023 Response: Training will be provided to all managers regarding the importance of running the EIV 90 day Income Reports on a timely basis. Will instruct managers on how to set up alerts to run 90- day reports on our software One Site.

Finding 2022-001

FINDING No. 2022-001: Section 207/223(f) Mortgage Refinancing, CFDA 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-seven tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires annual unit inspections performed in a timely manner with the corresponding documentation maintained. Statement of Condition: The Project did not perform and/or maintain move-in unit inspections for two tenants. Cause: The Project did not conduct and/or maintain the move-in unit inspections. Effect or Potential Effect: Unable to determine and assess whether the property has sustained any damage that require repairs. Auditor Non-Compliance Code: R ? Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendation will be adopted. Recommendation: The Project should perform annual unit inspections and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 6/30/2023 Response: This was an oversight by the former community manager. Current staff has been trained on HUD requirements including move-in inspections.

Finding 2022-002

FINDING No. 2022-002: Section 207/223(f) Mortgage Refinancing, CFDA 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-seven tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires that new tenant?s income be reviewed via Electronic Income Verification (EIV) within 90 days after the move-in information is transmitted to Tenant Rental Assistance Certification System (TRACS) to confirm/validate the income reported by the household. Statement of Condition: The Project did not obtain income verification via EIV within 90 days after move-in for eight tenants. Cause: The Project did not perform timely income verification nor maintain appropriate tenant eligibility documentation required by HUD. Effect or Potential Effect: Unable to verify initial eligibility and cost of assistance may be 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 recommendation will be adopted. Recommendation: The Project should verify initial tenant income through the EIV system in a timely manner and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 6/30/2023 Response: Training will be provided to all managers regarding the importance of running the EIV 90 day Income Reports on a timely basis. Will instruct managers on how to set up alerts to run 90- day reports on our software One Site.