FAC Explorer

Audit 28289

FY End
2022-12-31
Total Expended
$2.26M
Findings
6
Programs
3
Organization: Retired Steelworkers Housing and Health Development Corporation (FL)
Year: 2022 Accepted: 2023-04-10
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20430 2022-001 - Yes E
20431 2022-002 - - N
20432 2022-003 - - E
596872 2022-001 - Yes E
596873 2022-002 - - N
596874 2022-003 - - E

Programs

ALN Program Spent Major Findings
14.103 Interest Reduction Payments_rental and Cooperative Housing for Lower Income Families $1.37M Yes 3
14.195 Section 8 Housing Assistance Payments Program $629,241 - 0
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $258,291 - 0

Contacts

Name Title Type
J5FMVR8LENF5 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 award activity of Retired Steelworkers Housing and Health Development Corporation, operating as Hugh Carcella Apartments, HUD Project No. 034-45003, 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 Retired Steelworkers Housing and Health Development Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Retired Steelworkers Housing and Health Development Corporation. 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: Retired Steelworkers Housing and Health Development Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Retired Steelworkers Housing and Health Development Corporation has received a HUD mortgage restructuring note under Section 236 of the National Housing Act and a mortgage refinancing loan under Section 207/223(f) of the National Housing Act. The loan balances outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Retired Steelworkers Housing and Health Development Corporation received no additional loans during the year. The following loans were outstanding as of December 31, 2022: Section 236 Mortgage Restructuring Note was $1,372,157 ; and Section 207/223(f) Mortgage Refinancing loan was $242,971.

Finding Details

Finding 2022-001
FINDING No. 2022-001: Section 236 Mortgage Restructuring Note, CFDA 14.103 Finding Resolution Status: Unresolved. Information on Universe Population Size: One hundred thirty tenants. Sample Size Information: Twenty tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001. Criteria: HUD regulations require timely verification of tenant?s initial income through the Enterprise Income Verification (EIV) performed within 90 days of the tenant being entered into Tenant Rental Assistance Certification System (TRACS) with the corresponding documentation maintained. Statement of Condition: The Project did not perform and/or maintain the EIV reports for three tenants. Cause: The Project did not adhere to HUD regulations for initial and continuing eligibility and did not perform timely income verification. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency 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 recommendations will be adopted. Recommendation: The Project should implement procedures to ensure the Project verifies tenant eligibility through the EIV system in a timely manner. Also, the Project should contact its local HUD office EIV coordinator for guidance on generating reports for tenant occupying the Project?s section 236 units. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Managers have been trained that EIV income reports must be pulled timely and reviewed and action taken if needed. Alerts have been turned on in One Site to remind managers to pull EIV 90 day reports.
Finding 2022-002
FINDING No. 2022-002: Section 236 Mortgage Restructuring Note, CFDA 14.103 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended December 31, 2022. Sample Size Information: All replacement reserve deposits for the year ended December 31, 2022. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require OCAF rent adjusted projects to increase its monthly replacement reserve funding by the same percentage as the authorized rent increase. Statement of Condition: The Project did not increase the required monthly deposits to the replacement reserve by the 2.67% OCAF rent increase, and the replacement reserve was underfunded by $379. Cause: An increase in funding was not implemented. Effect or Potential Effect: Deficiently funded reserve for replacement account. Auditor Non-Compliance Code: N ? Reserve for Replacements Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: Management should implement procedures to ensure that replacement reserve monthly deposits are increased at the same percentage as the authorized OCAF rental increase and that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Management has implemented a new procedure to ensure all monthly deposits are made within the current period.
Finding 2022-003
FINDING No. 2022-003: Section 236 Mortgage Restructuring Note, CFDA 14.103 Finding Resolution Status: Unresolved. Information on Universe Population Size: Eleven moved-in tenants. Sample Size Information: Two moved-in tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the maintenance of a waiting list and the selection of applicants in chronological order of application date with adequate documentation of the reasoning for an applicant being passed over for an applicant with a later application date. Statement of Condition: Three applicants were passed over without maintaining and documenting a reason. Cause: The manager did not maintain appropriate documentation of the reasons for passing over applicants. Effect or Potential Effect: Unable to determine date and time for the receipt of applications for proper wait listing placement and subsequent selection to occupy a unit. Auditor Non-Compliance Code: R ? Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure appropriate documentation of the reasoning for passing over applicants. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Training has been conducted with managers on proper waiting list procedures. Going forward compliance will be checking waiting lists at random to ensure appropriate documentation is entered on the waiting list if an applicant is passed over.
Finding 2022-001
FINDING No. 2022-001: Section 236 Mortgage Restructuring Note, CFDA 14.103 Finding Resolution Status: Unresolved. Information on Universe Population Size: One hundred thirty tenants. Sample Size Information: Twenty tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001. Criteria: HUD regulations require timely verification of tenant?s initial income through the Enterprise Income Verification (EIV) performed within 90 days of the tenant being entered into Tenant Rental Assistance Certification System (TRACS) with the corresponding documentation maintained. Statement of Condition: The Project did not perform and/or maintain the EIV reports for three tenants. Cause: The Project did not adhere to HUD regulations for initial and continuing eligibility and did not perform timely income verification. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency 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 recommendations will be adopted. Recommendation: The Project should implement procedures to ensure the Project verifies tenant eligibility through the EIV system in a timely manner. Also, the Project should contact its local HUD office EIV coordinator for guidance on generating reports for tenant occupying the Project?s section 236 units. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Managers have been trained that EIV income reports must be pulled timely and reviewed and action taken if needed. Alerts have been turned on in One Site to remind managers to pull EIV 90 day reports.
Finding 2022-002
FINDING No. 2022-002: Section 236 Mortgage Restructuring Note, CFDA 14.103 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended December 31, 2022. Sample Size Information: All replacement reserve deposits for the year ended December 31, 2022. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require OCAF rent adjusted projects to increase its monthly replacement reserve funding by the same percentage as the authorized rent increase. Statement of Condition: The Project did not increase the required monthly deposits to the replacement reserve by the 2.67% OCAF rent increase, and the replacement reserve was underfunded by $379. Cause: An increase in funding was not implemented. Effect or Potential Effect: Deficiently funded reserve for replacement account. Auditor Non-Compliance Code: N ? Reserve for Replacements Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: Management should implement procedures to ensure that replacement reserve monthly deposits are increased at the same percentage as the authorized OCAF rental increase and that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Management has implemented a new procedure to ensure all monthly deposits are made within the current period.
Finding 2022-003
FINDING No. 2022-003: Section 236 Mortgage Restructuring Note, CFDA 14.103 Finding Resolution Status: Unresolved. Information on Universe Population Size: Eleven moved-in tenants. Sample Size Information: Two moved-in tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the maintenance of a waiting list and the selection of applicants in chronological order of application date with adequate documentation of the reasoning for an applicant being passed over for an applicant with a later application date. Statement of Condition: Three applicants were passed over without maintaining and documenting a reason. Cause: The manager did not maintain appropriate documentation of the reasons for passing over applicants. Effect or Potential Effect: Unable to determine date and time for the receipt of applications for proper wait listing placement and subsequent selection to occupy a unit. Auditor Non-Compliance Code: R ? Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure appropriate documentation of the reasoning for passing over applicants. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Training has been conducted with managers on proper waiting list procedures. Going forward compliance will be checking waiting lists at random to ensure appropriate documentation is entered on the waiting list if an applicant is passed over.