Audit 28601

FY End
2022-12-31
Total Expended
$4.32M
Findings
2
Programs
5
Year: 2022 Accepted: 2023-09-26

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
33422 2022-001 - - N
609864 2022-001 - - N

Programs

Contacts

Name Title Type
RY46DLNQAN83 Terri Tanner-Hill Auditee
3017708438 Judith Schiavi Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Consolidated 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. Per guidance from the Department of the Treasury, Coronavirus Relief Fund (the Fund) payments are not administered as part of a traditional grant program and the provisions of the Uniform Guidance, 2C.F.R. Part 200, that are applicable to indirect costs do not apply. Recipients may not apply their indirect cost rates to payments received from the Fund. The Companies have not applied indirect cost rates to these payments. Revitz House Corporation has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance for the HUD awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying consolidated schedule of expenditures of federal awards (the Consolidated Schedule) includes the federal award activity of Hebrew Home of Greater Washington, Inc. (HHGW)and Affiliates (the Companies) and is presented on the accrual basis of accounting. The information on 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 Consolidated Schedule presents only a selected portion of the Companies operations, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Companies.
Title: Donated Personal Protective Equipment (Unaudited) Accounting Policies: Expenditures reported on the Consolidated 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. Per guidance from the Department of the Treasury, Coronavirus Relief Fund (the Fund) payments are not administered as part of a traditional grant program and the provisions of the Uniform Guidance, 2C.F.R. Part 200, that are applicable to indirect costs do not apply. Recipients may not apply their indirect cost rates to payments received from the Fund. The Companies have not applied indirect cost rates to these payments. Revitz House Corporation has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance for the HUD awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. In addition to federal awards received and reported on the consolidated schedule, the Companies received approximately $300,000 in donated COVID-19 testing kits. No personal protective equipment was received from federal sources.
Title: Covid-19 Provider Relief Fund Accounting Policies: Expenditures reported on the Consolidated 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. Per guidance from the Department of the Treasury, Coronavirus Relief Fund (the Fund) payments are not administered as part of a traditional grant program and the provisions of the Uniform Guidance, 2C.F.R. Part 200, that are applicable to indirect costs do not apply. Recipients may not apply their indirect cost rates to payments received from the Fund. The Companies have not applied indirect cost rates to these payments. Revitz House Corporation has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance for the HUD awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Companies received COVID-19 Provider Relief Funds under the following tax identification numbers: Landow House, Inc. 300012186, and Hebrew Home of Greater Washington, Inc. 530196508.In accordance with the reporting requirements of the granting agency, the amounts presented in the Consolidated Schedule represent lost revenues as reported to the U.S. Department of Health and Human Services for the period of July 1, 2021 to December 31, 2021.

Finding Details

C. Findings and Questioned Costs ? Major Federal Award Programs Audit Department of Housing and Urban Development Finding No: 2022-1: Section 8 Housing Assistance Program, Assistance Listing No. 14.195 ? Failure to document move-in inspections prior to lease agreement execution. Criteria: HUD Handbook 4350-3, REV-1, Section 6-29 requires that both owner and tenant must jointly inspect the tenant unit before execution of lease and that appropriate signatures be documented on the inspection form. Condition: Based on a sample review of tenant files, 3 out of 8 files did not include a move-in inspection form. Cause: Control procedures were not in place to ensure that documented move-in inspections occurred in accordance with move-in procedures outlined in the HUD Handbook. Effect: The effect is non-compliance with the requirements of the Department of Housing and Urban Development, HUD Handbook 4350-3, REV-1, Section 6-29. Questioned Costs: There were no questioned costs. Context: Revitz House Corporation received federal awards related to HUD?s housing assistance program which requires compliance with the Compliance Supplement and HUD guidelines. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that control procedures be put in place to ensure that no lease is executed until a move-in inspection is completed, the inspection form is signed by both tenant and landlord, and the signed inspection form is placed in the tenant file. Views of Responsible Officials and Planned Corrective Action: In each of the three instances noted, the tenant was an existing tenant converting to Section 8 subsidy. The tenant did not physically change apartments; therefore, a move-in did not take place and a move-in inspection was not completed. Revitz House Corporation now understands that HUD may view this circumstance as a move-in and will put control procedures in place to document move-in inspections in accordance with the HUD Handbook on a go-forward basis.
C. Findings and Questioned Costs ? Major Federal Award Programs Audit Department of Housing and Urban Development Finding No: 2022-1: Section 8 Housing Assistance Program, Assistance Listing No. 14.195 ? Failure to document move-in inspections prior to lease agreement execution. Criteria: HUD Handbook 4350-3, REV-1, Section 6-29 requires that both owner and tenant must jointly inspect the tenant unit before execution of lease and that appropriate signatures be documented on the inspection form. Condition: Based on a sample review of tenant files, 3 out of 8 files did not include a move-in inspection form. Cause: Control procedures were not in place to ensure that documented move-in inspections occurred in accordance with move-in procedures outlined in the HUD Handbook. Effect: The effect is non-compliance with the requirements of the Department of Housing and Urban Development, HUD Handbook 4350-3, REV-1, Section 6-29. Questioned Costs: There were no questioned costs. Context: Revitz House Corporation received federal awards related to HUD?s housing assistance program which requires compliance with the Compliance Supplement and HUD guidelines. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that control procedures be put in place to ensure that no lease is executed until a move-in inspection is completed, the inspection form is signed by both tenant and landlord, and the signed inspection form is placed in the tenant file. Views of Responsible Officials and Planned Corrective Action: In each of the three instances noted, the tenant was an existing tenant converting to Section 8 subsidy. The tenant did not physically change apartments; therefore, a move-in did not take place and a move-in inspection was not completed. Revitz House Corporation now understands that HUD may view this circumstance as a move-in and will put control procedures in place to document move-in inspections in accordance with the HUD Handbook on a go-forward basis.