Finding reference number: 2022-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-001: The owners have not filed the 2017, 2018, 2019, 2020, 2021 or 2022 federal income tax returns.
Criteria: HUD Section 202 Capital Advances are available to not-for-profit owners.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2022, the Corporation's status as a not-for-profit entity has been revoked.
Cause: The Board of Directions failed to provide the information required to complete the tax returns on a timely basis.
Recommendation: Tax returns should be filed on a timely basis.
Completion Date: In Process
Management's response: Agree. Management and the Board of Directors are taking steps to file the previous tax returns and have the Corporation's not-for-profit designation reinstated.
Finding reference number: 2022-002
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: Cleared
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-002: The Form SF-SAC Single Audit Data Collection Form for the years ended December 31, 2018, 2019, 2020 and 2021 were not submitted to the federal audit clearinghouse in the required timeframe.
Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period.
Effect: The Corporation is not in compliance with Uniform Guidance.
Cause: The Corporation did not file the data collection form SF-SAC within the required timeframe of the December 31, 2018, 2019, 2020 and 2021 year ends.
Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Forms for the years ended December 31, 2018, 2019, 2020 and 2021 as soon as practical.
Completion Date: April 3, 2023
Management's response: Agree. Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2018 was submitted to the federal audit clearinghouse on March 8, 2023, the Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2019 was submitted on March 8, 2023, the Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2020 was submitted on April 3, 2023, and the Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2021 was submitted on February 15, 2023. No further action is required.
Finding reference number: 2022-003
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: A-Unauthorized withdrawal from replacement reserve
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $55,000
Statement of condition 2022-003: During prior years, the Board of Directors disbursed funds from the replacement reserve to fund development of other housing developments.
Criteria: Pursuant to the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Property.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2022, the reserve for replacements account is underfunded by $55,000.
Cause: The Board of Directors did not comply with the HUD Regulatory Agreement regarding use of the reserve for replacements.
Recommendation: The Board of Directors should replace the funds that were disbursed from the reserve for replacements without HUD approval.
Completion Date: In Process
Management's response: Agree. The Board of Directors entered into a repayment agreement with HUD beginning in 2023 to repay the unapproved disbursements from the reserve for replacements reserve to the Property.
Finding reference number: 2022-004
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-004: The Corporation did not furnish HUD with complete financial statements by the due date of September 30, 2023.
Criteria: Pursuant to paragraph 11(f) of the Regulatory Agreement, following the end of each fiscal year, the Corporation shall furnish HUD with a complete annual financial report. The December 31, 2022 financial statements were due to HUD on September 30, 2023.
Effect: The Corporation is not in compliance with the Regulatory Agreement.
Cause: The Sponsor was unable to obtain the required certifications to approve and submit the audit by the audit due date.
Recommendation: The Corporation should file the December 31, 2022 financial statements as soon as practical and should ensure the annual financial report is filed by the HUD deadline in future periods.
Completion Date: In Process
Management's response: Agree. The Corporation intends to submit the financial statements to HUD by January 26, 2024.
Finding reference number: 2022-005
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-005: The Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2022 was not submitted to the federal audit clearinghouse in the required timeframe.
Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period.
Effect: The Corporation is not in compliance with Uniform Guidance.
Cause: The Corporation did not file the data collection form SF-SAC within the required timeframe of the December 31, 2022 year end.
Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Forms for the year ended December 31, 2022 as soon as practical.
Completion Date: In Process
Management's response: Agree. Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2022 will be submitted to the federal audit clearinghouse upon completion of the audit.
Finding reference number: 2022-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-001: The owners have not filed the 2017, 2018, 2019, 2020, 2021 or 2022 federal income tax returns.
Criteria: HUD Section 202 Capital Advances are available to not-for-profit owners.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2022, the Corporation's status as a not-for-profit entity has been revoked.
Cause: The Board of Directions failed to provide the information required to complete the tax returns on a timely basis.
Recommendation: Tax returns should be filed on a timely basis.
Completion Date: In Process
Management's response: Agree. Management and the Board of Directors are taking steps to file the previous tax returns and have the Corporation's not-for-profit designation reinstated.
Finding reference number: 2022-002
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: Cleared
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-002: The Form SF-SAC Single Audit Data Collection Form for the years ended December 31, 2018, 2019, 2020 and 2021 were not submitted to the federal audit clearinghouse in the required timeframe.
Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period.
Effect: The Corporation is not in compliance with Uniform Guidance.
Cause: The Corporation did not file the data collection form SF-SAC within the required timeframe of the December 31, 2018, 2019, 2020 and 2021 year ends.
Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Forms for the years ended December 31, 2018, 2019, 2020 and 2021 as soon as practical.
Completion Date: April 3, 2023
Management's response: Agree. Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2018 was submitted to the federal audit clearinghouse on March 8, 2023, the Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2019 was submitted on March 8, 2023, the Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2020 was submitted on April 3, 2023, and the Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2021 was submitted on February 15, 2023. No further action is required.
Finding reference number: 2022-003
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: A-Unauthorized withdrawal from replacement reserve
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $55,000
Statement of condition 2022-003: During prior years, the Board of Directors disbursed funds from the replacement reserve to fund development of other housing developments.
Criteria: Pursuant to the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Property.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2022, the reserve for replacements account is underfunded by $55,000.
Cause: The Board of Directors did not comply with the HUD Regulatory Agreement regarding use of the reserve for replacements.
Recommendation: The Board of Directors should replace the funds that were disbursed from the reserve for replacements without HUD approval.
Completion Date: In Process
Management's response: Agree. The Board of Directors entered into a repayment agreement with HUD beginning in 2023 to repay the unapproved disbursements from the reserve for replacements reserve to the Property.
Finding reference number: 2022-004
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-004: The Corporation did not furnish HUD with complete financial statements by the due date of September 30, 2023.
Criteria: Pursuant to paragraph 11(f) of the Regulatory Agreement, following the end of each fiscal year, the Corporation shall furnish HUD with a complete annual financial report. The December 31, 2022 financial statements were due to HUD on September 30, 2023.
Effect: The Corporation is not in compliance with the Regulatory Agreement.
Cause: The Sponsor was unable to obtain the required certifications to approve and submit the audit by the audit due date.
Recommendation: The Corporation should file the December 31, 2022 financial statements as soon as practical and should ensure the annual financial report is filed by the HUD deadline in future periods.
Completion Date: In Process
Management's response: Agree. The Corporation intends to submit the financial statements to HUD by January 26, 2024.
Finding reference number: 2022-005
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-005: The Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2022 was not submitted to the federal audit clearinghouse in the required timeframe.
Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period.
Effect: The Corporation is not in compliance with Uniform Guidance.
Cause: The Corporation did not file the data collection form SF-SAC within the required timeframe of the December 31, 2022 year end.
Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Forms for the year ended December 31, 2022 as soon as practical.
Completion Date: In Process
Management's response: Agree. Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2022 will be submitted to the federal audit clearinghouse upon completion of the audit.
Finding reference number: 2022-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-001: The owners have not filed the 2017, 2018, 2019, 2020, 2021 or 2022 federal income tax returns.
Criteria: HUD Section 202 Capital Advances are available to not-for-profit owners.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2022, the Corporation's status as a not-for-profit entity has been revoked.
Cause: The Board of Directions failed to provide the information required to complete the tax returns on a timely basis.
Recommendation: Tax returns should be filed on a timely basis.
Completion Date: In Process
Management's response: Agree. Management and the Board of Directors are taking steps to file the previous tax returns and have the Corporation's not-for-profit designation reinstated.
Finding reference number: 2022-002
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: Cleared
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-002: The Form SF-SAC Single Audit Data Collection Form for the years ended December 31, 2018, 2019, 2020 and 2021 were not submitted to the federal audit clearinghouse in the required timeframe.
Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period.
Effect: The Corporation is not in compliance with Uniform Guidance.
Cause: The Corporation did not file the data collection form SF-SAC within the required timeframe of the December 31, 2018, 2019, 2020 and 2021 year ends.
Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Forms for the years ended December 31, 2018, 2019, 2020 and 2021 as soon as practical.
Completion Date: April 3, 2023
Management's response: Agree. Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2018 was submitted to the federal audit clearinghouse on March 8, 2023, the Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2019 was submitted on March 8, 2023, the Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2020 was submitted on April 3, 2023, and the Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2021 was submitted on February 15, 2023. No further action is required.
Finding reference number: 2022-003
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: A-Unauthorized withdrawal from replacement reserve
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $55,000
Statement of condition 2022-003: During prior years, the Board of Directors disbursed funds from the replacement reserve to fund development of other housing developments.
Criteria: Pursuant to the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Property.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2022, the reserve for replacements account is underfunded by $55,000.
Cause: The Board of Directors did not comply with the HUD Regulatory Agreement regarding use of the reserve for replacements.
Recommendation: The Board of Directors should replace the funds that were disbursed from the reserve for replacements without HUD approval.
Completion Date: In Process
Management's response: Agree. The Board of Directors entered into a repayment agreement with HUD beginning in 2023 to repay the unapproved disbursements from the reserve for replacements reserve to the Property.
Finding reference number: 2022-004
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-004: The Corporation did not furnish HUD with complete financial statements by the due date of September 30, 2023.
Criteria: Pursuant to paragraph 11(f) of the Regulatory Agreement, following the end of each fiscal year, the Corporation shall furnish HUD with a complete annual financial report. The December 31, 2022 financial statements were due to HUD on September 30, 2023.
Effect: The Corporation is not in compliance with the Regulatory Agreement.
Cause: The Sponsor was unable to obtain the required certifications to approve and submit the audit by the audit due date.
Recommendation: The Corporation should file the December 31, 2022 financial statements as soon as practical and should ensure the annual financial report is filed by the HUD deadline in future periods.
Completion Date: In Process
Management's response: Agree. The Corporation intends to submit the financial statements to HUD by January 26, 2024.
Finding reference number: 2022-005
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-005: The Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2022 was not submitted to the federal audit clearinghouse in the required timeframe.
Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period.
Effect: The Corporation is not in compliance with Uniform Guidance.
Cause: The Corporation did not file the data collection form SF-SAC within the required timeframe of the December 31, 2022 year end.
Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Forms for the year ended December 31, 2022 as soon as practical.
Completion Date: In Process
Management's response: Agree. Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2022 will be submitted to the federal audit clearinghouse upon completion of the audit.
Finding reference number: 2022-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-001: The owners have not filed the 2017, 2018, 2019, 2020, 2021 or 2022 federal income tax returns.
Criteria: HUD Section 202 Capital Advances are available to not-for-profit owners.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2022, the Corporation's status as a not-for-profit entity has been revoked.
Cause: The Board of Directions failed to provide the information required to complete the tax returns on a timely basis.
Recommendation: Tax returns should be filed on a timely basis.
Completion Date: In Process
Management's response: Agree. Management and the Board of Directors are taking steps to file the previous tax returns and have the Corporation's not-for-profit designation reinstated.
Finding reference number: 2022-002
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: Cleared
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-002: The Form SF-SAC Single Audit Data Collection Form for the years ended December 31, 2018, 2019, 2020 and 2021 were not submitted to the federal audit clearinghouse in the required timeframe.
Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period.
Effect: The Corporation is not in compliance with Uniform Guidance.
Cause: The Corporation did not file the data collection form SF-SAC within the required timeframe of the December 31, 2018, 2019, 2020 and 2021 year ends.
Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Forms for the years ended December 31, 2018, 2019, 2020 and 2021 as soon as practical.
Completion Date: April 3, 2023
Management's response: Agree. Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2018 was submitted to the federal audit clearinghouse on March 8, 2023, the Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2019 was submitted on March 8, 2023, the Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2020 was submitted on April 3, 2023, and the Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2021 was submitted on February 15, 2023. No further action is required.
Finding reference number: 2022-003
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: A-Unauthorized withdrawal from replacement reserve
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $55,000
Statement of condition 2022-003: During prior years, the Board of Directors disbursed funds from the replacement reserve to fund development of other housing developments.
Criteria: Pursuant to the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Property.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2022, the reserve for replacements account is underfunded by $55,000.
Cause: The Board of Directors did not comply with the HUD Regulatory Agreement regarding use of the reserve for replacements.
Recommendation: The Board of Directors should replace the funds that were disbursed from the reserve for replacements without HUD approval.
Completion Date: In Process
Management's response: Agree. The Board of Directors entered into a repayment agreement with HUD beginning in 2023 to repay the unapproved disbursements from the reserve for replacements reserve to the Property.
Finding reference number: 2022-004
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-004: The Corporation did not furnish HUD with complete financial statements by the due date of September 30, 2023.
Criteria: Pursuant to paragraph 11(f) of the Regulatory Agreement, following the end of each fiscal year, the Corporation shall furnish HUD with a complete annual financial report. The December 31, 2022 financial statements were due to HUD on September 30, 2023.
Effect: The Corporation is not in compliance with the Regulatory Agreement.
Cause: The Sponsor was unable to obtain the required certifications to approve and submit the audit by the audit due date.
Recommendation: The Corporation should file the December 31, 2022 financial statements as soon as practical and should ensure the annual financial report is filed by the HUD deadline in future periods.
Completion Date: In Process
Management's response: Agree. The Corporation intends to submit the financial statements to HUD by January 26, 2024.
Finding reference number: 2022-005
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-005: The Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2022 was not submitted to the federal audit clearinghouse in the required timeframe.
Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period.
Effect: The Corporation is not in compliance with Uniform Guidance.
Cause: The Corporation did not file the data collection form SF-SAC within the required timeframe of the December 31, 2022 year end.
Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Forms for the year ended December 31, 2022 as soon as practical.
Completion Date: In Process
Management's response: Agree. Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2022 will be submitted to the federal audit clearinghouse upon completion of the audit.