Audit 29014

FY End
2022-03-31
Total Expended
$1.50M
Findings
8
Programs
2
Organization: Edsil's Place Apartments, Inc. (KY)
Year: 2022 Accepted: 2023-04-05

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
33137 2022-001 Significant Deficiency Yes B
33138 2022-002 Significant Deficiency - E
33139 2022-001 Significant Deficiency Yes B
33140 2022-002 Significant Deficiency - E
609579 2022-001 Significant Deficiency Yes B
609580 2022-002 Significant Deficiency - E
609581 2022-001 Significant Deficiency Yes B
609582 2022-002 Significant Deficiency - E

Contacts

Name Title Type
S4GAT7VL3PE9 Linda House Auditee
5025893030 Emily Rosiello Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The schedule of expenditures of federal awards is prepared on the accrual basis ofaccounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES - BALANCE OF CAPITAL ADVANCE GRANT AS OF APRIL 1, 2021, UNDER SECTION 811 OF THE NATIONAL AFFORDABLE HOUSING ACT OF 1990 (14.181) - Balances outstanding at the end of the audit period were 1446100.

Finding Details

Finding reference number: #2022-001 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD073- NPWPD, year 2005). Auditor non-compliance code: Z-Other Finding resolution status: Unresolved Universe population size: 225 invoices Sample size information: 23 invoices 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 Repeat finding: Yes Statement of condition #2022-001: During the year ended March 31, 2022, 6 of the 23 cash disbursements selected for testing were not supported by approved invoices, bills, or other supporting documentation. Criteria: In accordance with HUD Handbook 4370.2, Section 2-6, all disbursements from the regular operating account must be supported by approved invoices, bills, or other supporting documentation. Effect or potential effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4370.2. Due to inadequate record keeping procedures, the Agent may have paid incorrect amounts for operating expenses. Cause: The Agent did not maintain the required supporting documentation for all cash disbursements in accordance with HUD Handbook 4370.2 due to verbal or informal agreements with vendors. Recommendation: The Agent should ensure that all cash disbursements are supported by approved invoices, bills, or other supporting documentation. The Agent should require that vendors provide written documentation of services or goods provided prior to making payments to the vendors. Completion date: March 31, 2023 Management's response: The Agent concurs with the recommendation. The Agent will require all vendors to submit invoices or other support for work performed prior to making payments to vendors, and all documentation will be retained.
Finding Reference number: #2022-002 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD073- NP-WPD, year 2005; PRAC identification number KY36-Q021-001, year 2005) Auditor non-compliance code: R-Section 8 Program Administration Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample Size Information: The sample size 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 Repeat finding: No Statement of condition #2022-002: During the year ended March 31, 2022, the Property continued to receive PRAC subsidy payments for one resident for six months after the resident moved out of the Property. Criteria: Per HUD Handbook 4350.3, Chapter 8, the Property should not request PRAC subsidy for deceased residents past the month in which the death occurred. Effect or potential effect: The Property is not in compliance Section 2.4 of the PRAC regarding termination of housing assistance. Due to inadequate record keeping procedures, the Agent received unauthorized PRAC payments for six or more months for one former resident after the resident moved out of the Property. Cause: The Agent inadvertently failed to remove the former resident from the monthly PRAC subsidy requests after the resident moved out. Recommendation: The Agent should note resident move outs or deceased tenants on the monthly PRAC vouchers requests in a timely manner following the terminating event to avoid receiving unauthorized PRAC payments. Completion date: March 31, 2023 Management's response: The Agent concurs with the recommendation. The Agent will note resident move outs or deceased tenants on the monthly PRAC voucher requests in a timely manner following the terminating event to avoid receiving unauthorized PRAC payments. The Agent will reimburse HUD for the unauthorized PRAC payments received.
Finding reference number: #2022-001 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD073- NPWPD, year 2005). Auditor non-compliance code: Z-Other Finding resolution status: Unresolved Universe population size: 225 invoices Sample size information: 23 invoices 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 Repeat finding: Yes Statement of condition #2022-001: During the year ended March 31, 2022, 6 of the 23 cash disbursements selected for testing were not supported by approved invoices, bills, or other supporting documentation. Criteria: In accordance with HUD Handbook 4370.2, Section 2-6, all disbursements from the regular operating account must be supported by approved invoices, bills, or other supporting documentation. Effect or potential effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4370.2. Due to inadequate record keeping procedures, the Agent may have paid incorrect amounts for operating expenses. Cause: The Agent did not maintain the required supporting documentation for all cash disbursements in accordance with HUD Handbook 4370.2 due to verbal or informal agreements with vendors. Recommendation: The Agent should ensure that all cash disbursements are supported by approved invoices, bills, or other supporting documentation. The Agent should require that vendors provide written documentation of services or goods provided prior to making payments to the vendors. Completion date: March 31, 2023 Management's response: The Agent concurs with the recommendation. The Agent will require all vendors to submit invoices or other support for work performed prior to making payments to vendors, and all documentation will be retained.
Finding Reference number: #2022-002 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD073- NP-WPD, year 2005; PRAC identification number KY36-Q021-001, year 2005) Auditor non-compliance code: R-Section 8 Program Administration Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample Size Information: The sample size 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 Repeat finding: No Statement of condition #2022-002: During the year ended March 31, 2022, the Property continued to receive PRAC subsidy payments for one resident for six months after the resident moved out of the Property. Criteria: Per HUD Handbook 4350.3, Chapter 8, the Property should not request PRAC subsidy for deceased residents past the month in which the death occurred. Effect or potential effect: The Property is not in compliance Section 2.4 of the PRAC regarding termination of housing assistance. Due to inadequate record keeping procedures, the Agent received unauthorized PRAC payments for six or more months for one former resident after the resident moved out of the Property. Cause: The Agent inadvertently failed to remove the former resident from the monthly PRAC subsidy requests after the resident moved out. Recommendation: The Agent should note resident move outs or deceased tenants on the monthly PRAC vouchers requests in a timely manner following the terminating event to avoid receiving unauthorized PRAC payments. Completion date: March 31, 2023 Management's response: The Agent concurs with the recommendation. The Agent will note resident move outs or deceased tenants on the monthly PRAC voucher requests in a timely manner following the terminating event to avoid receiving unauthorized PRAC payments. The Agent will reimburse HUD for the unauthorized PRAC payments received.
Finding reference number: #2022-001 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD073- NPWPD, year 2005). Auditor non-compliance code: Z-Other Finding resolution status: Unresolved Universe population size: 225 invoices Sample size information: 23 invoices 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 Repeat finding: Yes Statement of condition #2022-001: During the year ended March 31, 2022, 6 of the 23 cash disbursements selected for testing were not supported by approved invoices, bills, or other supporting documentation. Criteria: In accordance with HUD Handbook 4370.2, Section 2-6, all disbursements from the regular operating account must be supported by approved invoices, bills, or other supporting documentation. Effect or potential effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4370.2. Due to inadequate record keeping procedures, the Agent may have paid incorrect amounts for operating expenses. Cause: The Agent did not maintain the required supporting documentation for all cash disbursements in accordance with HUD Handbook 4370.2 due to verbal or informal agreements with vendors. Recommendation: The Agent should ensure that all cash disbursements are supported by approved invoices, bills, or other supporting documentation. The Agent should require that vendors provide written documentation of services or goods provided prior to making payments to the vendors. Completion date: March 31, 2023 Management's response: The Agent concurs with the recommendation. The Agent will require all vendors to submit invoices or other support for work performed prior to making payments to vendors, and all documentation will be retained.
Finding Reference number: #2022-002 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD073- NP-WPD, year 2005; PRAC identification number KY36-Q021-001, year 2005) Auditor non-compliance code: R-Section 8 Program Administration Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample Size Information: The sample size 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 Repeat finding: No Statement of condition #2022-002: During the year ended March 31, 2022, the Property continued to receive PRAC subsidy payments for one resident for six months after the resident moved out of the Property. Criteria: Per HUD Handbook 4350.3, Chapter 8, the Property should not request PRAC subsidy for deceased residents past the month in which the death occurred. Effect or potential effect: The Property is not in compliance Section 2.4 of the PRAC regarding termination of housing assistance. Due to inadequate record keeping procedures, the Agent received unauthorized PRAC payments for six or more months for one former resident after the resident moved out of the Property. Cause: The Agent inadvertently failed to remove the former resident from the monthly PRAC subsidy requests after the resident moved out. Recommendation: The Agent should note resident move outs or deceased tenants on the monthly PRAC vouchers requests in a timely manner following the terminating event to avoid receiving unauthorized PRAC payments. Completion date: March 31, 2023 Management's response: The Agent concurs with the recommendation. The Agent will note resident move outs or deceased tenants on the monthly PRAC voucher requests in a timely manner following the terminating event to avoid receiving unauthorized PRAC payments. The Agent will reimburse HUD for the unauthorized PRAC payments received.
Finding reference number: #2022-001 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD073- NPWPD, year 2005). Auditor non-compliance code: Z-Other Finding resolution status: Unresolved Universe population size: 225 invoices Sample size information: 23 invoices 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 Repeat finding: Yes Statement of condition #2022-001: During the year ended March 31, 2022, 6 of the 23 cash disbursements selected for testing were not supported by approved invoices, bills, or other supporting documentation. Criteria: In accordance with HUD Handbook 4370.2, Section 2-6, all disbursements from the regular operating account must be supported by approved invoices, bills, or other supporting documentation. Effect or potential effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4370.2. Due to inadequate record keeping procedures, the Agent may have paid incorrect amounts for operating expenses. Cause: The Agent did not maintain the required supporting documentation for all cash disbursements in accordance with HUD Handbook 4370.2 due to verbal or informal agreements with vendors. Recommendation: The Agent should ensure that all cash disbursements are supported by approved invoices, bills, or other supporting documentation. The Agent should require that vendors provide written documentation of services or goods provided prior to making payments to the vendors. Completion date: March 31, 2023 Management's response: The Agent concurs with the recommendation. The Agent will require all vendors to submit invoices or other support for work performed prior to making payments to vendors, and all documentation will be retained.
Finding Reference number: #2022-002 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD073- NP-WPD, year 2005; PRAC identification number KY36-Q021-001, year 2005) Auditor non-compliance code: R-Section 8 Program Administration Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample Size Information: The sample size 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 Repeat finding: No Statement of condition #2022-002: During the year ended March 31, 2022, the Property continued to receive PRAC subsidy payments for one resident for six months after the resident moved out of the Property. Criteria: Per HUD Handbook 4350.3, Chapter 8, the Property should not request PRAC subsidy for deceased residents past the month in which the death occurred. Effect or potential effect: The Property is not in compliance Section 2.4 of the PRAC regarding termination of housing assistance. Due to inadequate record keeping procedures, the Agent received unauthorized PRAC payments for six or more months for one former resident after the resident moved out of the Property. Cause: The Agent inadvertently failed to remove the former resident from the monthly PRAC subsidy requests after the resident moved out. Recommendation: The Agent should note resident move outs or deceased tenants on the monthly PRAC vouchers requests in a timely manner following the terminating event to avoid receiving unauthorized PRAC payments. Completion date: March 31, 2023 Management's response: The Agent concurs with the recommendation. The Agent will note resident move outs or deceased tenants on the monthly PRAC voucher requests in a timely manner following the terminating event to avoid receiving unauthorized PRAC payments. The Agent will reimburse HUD for the unauthorized PRAC payments received.