Audit 26553

FY End
2022-08-31
Total Expended
$6.96M
Findings
18
Programs
1
Organization: Newbury Elderly Housing, Inc. (NH)
Year: 2022 Accepted: 2022-12-08

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
31247 2022-001 - Yes N
31248 2022-002 - Yes E
31249 2022-003 Significant Deficiency Yes B
31250 2022-001 - Yes N
31251 2022-002 - Yes E
31252 2022-003 Significant Deficiency Yes B
31253 2022-001 - Yes N
31254 2022-002 - Yes E
31255 2022-003 Significant Deficiency Yes B
607689 2022-001 - Yes N
607690 2022-002 - Yes E
607691 2022-003 Significant Deficiency Yes B
607692 2022-001 - Yes N
607693 2022-002 - Yes E
607694 2022-003 Significant Deficiency Yes B
607695 2022-001 - Yes N
607696 2022-002 - Yes E
607697 2022-003 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $338,825 Yes 3

Contacts

Name Title Type
HZ8JHE9F5XF5 Jill Lesmerises Auditee
6032253295 Shauna Brown Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards includes the federal award activityof Newbury Elderly Housing, Inc., HUD Project No. 024-EE120, and is presented on the accrualbasis of accounting. The information in this schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Because the Schedule presents only a selected portion of the operations of Newbury ElderlyHousing, Inc., it is not intended to and does not present the financial position, changes in netassets, or cash flows of Newbury Elderly Housing, Inc.NOTE B: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures 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.Newbury Elderly Housing, Inc. has elected not to use the 10 percent de minimis indirect cost rateas allowed under the Uniform Guidance. 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 6377600. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 338825.

Finding Details

2022-001 Finding resolution status: Resolved Information on universe: Auditor tests the monthly bank statements for the reserve for replacement account. Sample size: 12 monthly statements Identification of repeat finding: Repeat finding 2021-002 Condition: One of the monthly Reserve for Replacement deposits was not deposited in the correct month. Criteria: HUD requires monthly deposits to the Reserve for Replacement account. Effect: Monthly deposit was not made timely. Context: Auditor reviewed the monthly bank statements and noted one deposit was not made in the correct month. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all monthly reserve for replacement deposits are made timely. Reporting views of responsible officials: A procedure has been implemented and all deposits will be made timely going forward. Date of completion: December 31, 2021
2022-002 Finding resolution status: Unresolved Information on universe: Auditor tests tenant files based on HUD sampling guidelines of less than 50 units. 5 files were selected for testing. Sample size: 5 files Identification of repeat finding : Repeat finding 2021-003 Condition: Tenant rent was not accurately calculated. Criteria: HUD requires annual re-certification and rent calculation. Effect: Tenant rent and tenant assistance were not correct for one tenant. Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted one file in which the income was not correctly calculated. Cause: Error by the project manager. Recommendation: A procedure be implemented to verify the treatment of unusual circumstances with the housing director. Reporting views of responsible officials: Management agrees and will implement a procedure. See Corrective Action Plan.
2022-003 SIGNIFICANT DEFICIENCY Finding resolution status: In-Process Information on universe: Substantive testing Sample size: Expenses selected for substantive testing based on analytics Identification of repeat finding : Repeat finding Condition: Although improvements were made in the documentation and allocation of expenses not all of the corrective action plan from finding 2021-004 has been implemented at year end. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Controls around allocations could be stronger which could result in misstatements. Context: Auditor selected accounts for testing due to the balances appearing unreasonable in comparison to the budget as well as prior year findings. It was noted that improvements were made after the prior audit was issued. Cause: Lack of policy surrounding time reporting. Recommendation: To document job duties for each position and implement a policy to ensure all time sheets detail out the duties performed. Reporting views of responsible officials: See Corrective Action Plan
2022-001 Finding resolution status: Resolved Information on universe: Auditor tests the monthly bank statements for the reserve for replacement account. Sample size: 12 monthly statements Identification of repeat finding: Repeat finding 2021-002 Condition: One of the monthly Reserve for Replacement deposits was not deposited in the correct month. Criteria: HUD requires monthly deposits to the Reserve for Replacement account. Effect: Monthly deposit was not made timely. Context: Auditor reviewed the monthly bank statements and noted one deposit was not made in the correct month. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all monthly reserve for replacement deposits are made timely. Reporting views of responsible officials: A procedure has been implemented and all deposits will be made timely going forward. Date of completion: December 31, 2021
2022-002 Finding resolution status: Unresolved Information on universe: Auditor tests tenant files based on HUD sampling guidelines of less than 50 units. 5 files were selected for testing. Sample size: 5 files Identification of repeat finding : Repeat finding 2021-003 Condition: Tenant rent was not accurately calculated. Criteria: HUD requires annual re-certification and rent calculation. Effect: Tenant rent and tenant assistance were not correct for one tenant. Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted one file in which the income was not correctly calculated. Cause: Error by the project manager. Recommendation: A procedure be implemented to verify the treatment of unusual circumstances with the housing director. Reporting views of responsible officials: Management agrees and will implement a procedure. See Corrective Action Plan.
2022-003 SIGNIFICANT DEFICIENCY Finding resolution status: In-Process Information on universe: Substantive testing Sample size: Expenses selected for substantive testing based on analytics Identification of repeat finding : Repeat finding Condition: Although improvements were made in the documentation and allocation of expenses not all of the corrective action plan from finding 2021-004 has been implemented at year end. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Controls around allocations could be stronger which could result in misstatements. Context: Auditor selected accounts for testing due to the balances appearing unreasonable in comparison to the budget as well as prior year findings. It was noted that improvements were made after the prior audit was issued. Cause: Lack of policy surrounding time reporting. Recommendation: To document job duties for each position and implement a policy to ensure all time sheets detail out the duties performed. Reporting views of responsible officials: See Corrective Action Plan
2022-001 Finding resolution status: Resolved Information on universe: Auditor tests the monthly bank statements for the reserve for replacement account. Sample size: 12 monthly statements Identification of repeat finding: Repeat finding 2021-002 Condition: One of the monthly Reserve for Replacement deposits was not deposited in the correct month. Criteria: HUD requires monthly deposits to the Reserve for Replacement account. Effect: Monthly deposit was not made timely. Context: Auditor reviewed the monthly bank statements and noted one deposit was not made in the correct month. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all monthly reserve for replacement deposits are made timely. Reporting views of responsible officials: A procedure has been implemented and all deposits will be made timely going forward. Date of completion: December 31, 2021
2022-002 Finding resolution status: Unresolved Information on universe: Auditor tests tenant files based on HUD sampling guidelines of less than 50 units. 5 files were selected for testing. Sample size: 5 files Identification of repeat finding : Repeat finding 2021-003 Condition: Tenant rent was not accurately calculated. Criteria: HUD requires annual re-certification and rent calculation. Effect: Tenant rent and tenant assistance were not correct for one tenant. Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted one file in which the income was not correctly calculated. Cause: Error by the project manager. Recommendation: A procedure be implemented to verify the treatment of unusual circumstances with the housing director. Reporting views of responsible officials: Management agrees and will implement a procedure. See Corrective Action Plan.
2022-003 SIGNIFICANT DEFICIENCY Finding resolution status: In-Process Information on universe: Substantive testing Sample size: Expenses selected for substantive testing based on analytics Identification of repeat finding : Repeat finding Condition: Although improvements were made in the documentation and allocation of expenses not all of the corrective action plan from finding 2021-004 has been implemented at year end. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Controls around allocations could be stronger which could result in misstatements. Context: Auditor selected accounts for testing due to the balances appearing unreasonable in comparison to the budget as well as prior year findings. It was noted that improvements were made after the prior audit was issued. Cause: Lack of policy surrounding time reporting. Recommendation: To document job duties for each position and implement a policy to ensure all time sheets detail out the duties performed. Reporting views of responsible officials: See Corrective Action Plan
2022-001 Finding resolution status: Resolved Information on universe: Auditor tests the monthly bank statements for the reserve for replacement account. Sample size: 12 monthly statements Identification of repeat finding: Repeat finding 2021-002 Condition: One of the monthly Reserve for Replacement deposits was not deposited in the correct month. Criteria: HUD requires monthly deposits to the Reserve for Replacement account. Effect: Monthly deposit was not made timely. Context: Auditor reviewed the monthly bank statements and noted one deposit was not made in the correct month. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all monthly reserve for replacement deposits are made timely. Reporting views of responsible officials: A procedure has been implemented and all deposits will be made timely going forward. Date of completion: December 31, 2021
2022-002 Finding resolution status: Unresolved Information on universe: Auditor tests tenant files based on HUD sampling guidelines of less than 50 units. 5 files were selected for testing. Sample size: 5 files Identification of repeat finding : Repeat finding 2021-003 Condition: Tenant rent was not accurately calculated. Criteria: HUD requires annual re-certification and rent calculation. Effect: Tenant rent and tenant assistance were not correct for one tenant. Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted one file in which the income was not correctly calculated. Cause: Error by the project manager. Recommendation: A procedure be implemented to verify the treatment of unusual circumstances with the housing director. Reporting views of responsible officials: Management agrees and will implement a procedure. See Corrective Action Plan.
2022-003 SIGNIFICANT DEFICIENCY Finding resolution status: In-Process Information on universe: Substantive testing Sample size: Expenses selected for substantive testing based on analytics Identification of repeat finding : Repeat finding Condition: Although improvements were made in the documentation and allocation of expenses not all of the corrective action plan from finding 2021-004 has been implemented at year end. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Controls around allocations could be stronger which could result in misstatements. Context: Auditor selected accounts for testing due to the balances appearing unreasonable in comparison to the budget as well as prior year findings. It was noted that improvements were made after the prior audit was issued. Cause: Lack of policy surrounding time reporting. Recommendation: To document job duties for each position and implement a policy to ensure all time sheets detail out the duties performed. Reporting views of responsible officials: See Corrective Action Plan
2022-001 Finding resolution status: Resolved Information on universe: Auditor tests the monthly bank statements for the reserve for replacement account. Sample size: 12 monthly statements Identification of repeat finding: Repeat finding 2021-002 Condition: One of the monthly Reserve for Replacement deposits was not deposited in the correct month. Criteria: HUD requires monthly deposits to the Reserve for Replacement account. Effect: Monthly deposit was not made timely. Context: Auditor reviewed the monthly bank statements and noted one deposit was not made in the correct month. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all monthly reserve for replacement deposits are made timely. Reporting views of responsible officials: A procedure has been implemented and all deposits will be made timely going forward. Date of completion: December 31, 2021
2022-002 Finding resolution status: Unresolved Information on universe: Auditor tests tenant files based on HUD sampling guidelines of less than 50 units. 5 files were selected for testing. Sample size: 5 files Identification of repeat finding : Repeat finding 2021-003 Condition: Tenant rent was not accurately calculated. Criteria: HUD requires annual re-certification and rent calculation. Effect: Tenant rent and tenant assistance were not correct for one tenant. Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted one file in which the income was not correctly calculated. Cause: Error by the project manager. Recommendation: A procedure be implemented to verify the treatment of unusual circumstances with the housing director. Reporting views of responsible officials: Management agrees and will implement a procedure. See Corrective Action Plan.
2022-003 SIGNIFICANT DEFICIENCY Finding resolution status: In-Process Information on universe: Substantive testing Sample size: Expenses selected for substantive testing based on analytics Identification of repeat finding : Repeat finding Condition: Although improvements were made in the documentation and allocation of expenses not all of the corrective action plan from finding 2021-004 has been implemented at year end. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Controls around allocations could be stronger which could result in misstatements. Context: Auditor selected accounts for testing due to the balances appearing unreasonable in comparison to the budget as well as prior year findings. It was noted that improvements were made after the prior audit was issued. Cause: Lack of policy surrounding time reporting. Recommendation: To document job duties for each position and implement a policy to ensure all time sheets detail out the duties performed. Reporting views of responsible officials: See Corrective Action Plan
2022-001 Finding resolution status: Resolved Information on universe: Auditor tests the monthly bank statements for the reserve for replacement account. Sample size: 12 monthly statements Identification of repeat finding: Repeat finding 2021-002 Condition: One of the monthly Reserve for Replacement deposits was not deposited in the correct month. Criteria: HUD requires monthly deposits to the Reserve for Replacement account. Effect: Monthly deposit was not made timely. Context: Auditor reviewed the monthly bank statements and noted one deposit was not made in the correct month. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all monthly reserve for replacement deposits are made timely. Reporting views of responsible officials: A procedure has been implemented and all deposits will be made timely going forward. Date of completion: December 31, 2021
2022-002 Finding resolution status: Unresolved Information on universe: Auditor tests tenant files based on HUD sampling guidelines of less than 50 units. 5 files were selected for testing. Sample size: 5 files Identification of repeat finding : Repeat finding 2021-003 Condition: Tenant rent was not accurately calculated. Criteria: HUD requires annual re-certification and rent calculation. Effect: Tenant rent and tenant assistance were not correct for one tenant. Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted one file in which the income was not correctly calculated. Cause: Error by the project manager. Recommendation: A procedure be implemented to verify the treatment of unusual circumstances with the housing director. Reporting views of responsible officials: Management agrees and will implement a procedure. See Corrective Action Plan.
2022-003 SIGNIFICANT DEFICIENCY Finding resolution status: In-Process Information on universe: Substantive testing Sample size: Expenses selected for substantive testing based on analytics Identification of repeat finding : Repeat finding Condition: Although improvements were made in the documentation and allocation of expenses not all of the corrective action plan from finding 2021-004 has been implemented at year end. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Controls around allocations could be stronger which could result in misstatements. Context: Auditor selected accounts for testing due to the balances appearing unreasonable in comparison to the budget as well as prior year findings. It was noted that improvements were made after the prior audit was issued. Cause: Lack of policy surrounding time reporting. Recommendation: To document job duties for each position and implement a policy to ensure all time sheets detail out the duties performed. Reporting views of responsible officials: See Corrective Action Plan