FAC Explorer

Audit 2860

FY End
2023-03-31
Total Expended
$3.69M
Findings
8
Programs
1
Organization: Epsom Elderly Housing, Inc. (NH)
Year: 2023 Accepted: 2023-11-10
Auditor: Leone McDonnell & Roberts P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1616 2023-001 - - E
1617 2023-002 Significant Deficiency - P
1618 2023-001 - - E
1619 2023-002 Significant Deficiency - P
578058 2023-001 - - E
578059 2023-002 Significant Deficiency - P
578060 2023-001 - - E
578061 2023-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $3.45M Yes 2

Contacts

Name Title Type
HYTNKRKUA2B7 Jill Lesmerises Auditee
6032253295 Shauna Brown Auditor
No contacts on file

Notes to SEFA

Title: NOTE C: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: NOTE A: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards includes the federal award activity of Epsom Elderly Housing, Inc., HUD Project No. 024-EE017, 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 Epsom Elderly Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Epsom Elderly Housing, 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: Epsom Elderly Housing, Inc. has elected not to use the 10 percent de minim is indirect cost rate as allowed under the Uniform Guidance. Epsom Elderly Housing, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section 202 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.Epsom Elderly Housing, Inc. received no additional loans during the year. The balance of the loan outstanding at March 31, 2023 consists of: Outstanding Balance at AL Number Program Name March 31, 2023 14.157 Section 202 Capital Advance $3,451,800

Finding Details

Finding 2023-001
Information on Universe Population Size : Population size was 56 files . Sample Size Information : Ten tenant files were tested. Criteria: HUD requires that tenant income has been calculated properly. Condition: Tenant rent and tenant assistance were not correct. Cause: Oversight by property manager. Effect: Tenant portion and HUD portion of rent were inaccurate. Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted multiple files in which the income and/or expenses were not calculated correctly. Recommendation: A procedure be implemented to ensure that all tenant income and expenses are calculated correctly.
Finding 2023-002
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner. Condition: HUD forms must be certified by an authorized user. Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to. Effect: The forms were not certified by the correct individual. Context: Auditor reviewed source documents noting incorrect certifier. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Finding 2023-001
Information on Universe Population Size : Population size was 56 files . Sample Size Information : Ten tenant files were tested. Criteria: HUD requires that tenant income has been calculated properly. Condition: Tenant rent and tenant assistance were not correct. Cause: Oversight by property manager. Effect: Tenant portion and HUD portion of rent were inaccurate. Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted multiple files in which the income and/or expenses were not calculated correctly. Recommendation: A procedure be implemented to ensure that all tenant income and expenses are calculated correctly.
Finding 2023-002
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner. Condition: HUD forms must be certified by an authorized user. Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to. Effect: The forms were not certified by the correct individual. Context: Auditor reviewed source documents noting incorrect certifier. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Finding 2023-001
Information on Universe Population Size : Population size was 56 files . Sample Size Information : Ten tenant files were tested. Criteria: HUD requires that tenant income has been calculated properly. Condition: Tenant rent and tenant assistance were not correct. Cause: Oversight by property manager. Effect: Tenant portion and HUD portion of rent were inaccurate. Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted multiple files in which the income and/or expenses were not calculated correctly. Recommendation: A procedure be implemented to ensure that all tenant income and expenses are calculated correctly.
Finding 2023-002
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner. Condition: HUD forms must be certified by an authorized user. Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to. Effect: The forms were not certified by the correct individual. Context: Auditor reviewed source documents noting incorrect certifier. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Finding 2023-001
Information on Universe Population Size : Population size was 56 files . Sample Size Information : Ten tenant files were tested. Criteria: HUD requires that tenant income has been calculated properly. Condition: Tenant rent and tenant assistance were not correct. Cause: Oversight by property manager. Effect: Tenant portion and HUD portion of rent were inaccurate. Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted multiple files in which the income and/or expenses were not calculated correctly. Recommendation: A procedure be implemented to ensure that all tenant income and expenses are calculated correctly.
Finding 2023-002
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner. Condition: HUD forms must be certified by an authorized user. Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to. Effect: The forms were not certified by the correct individual. Context: Auditor reviewed source documents noting incorrect certifier. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.