Audit 291250

FY End
2023-06-30
Total Expended
$8.38M
Findings
6
Programs
2
Organization: D Street Senior Housing, Inc. (MI)
Year: 2023 Accepted: 2024-02-20

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
369751 2023-001 Significant Deficiency - N
369752 2023-001 Significant Deficiency - N
369753 2023-001 Significant Deficiency - N
946193 2023-001 Significant Deficiency - N
946194 2023-001 Significant Deficiency - N
946195 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $1.19M - 0
14.157 Supportive Housing for the Elderly $22,006 Yes 1

Contacts

Name Title Type
JG8EE4MN2A24 Cindy Lamb Auditee
5867539002 Jacob Buehler Auditor
No contacts on file

Notes to SEFA

Title: Note 3 Accounting Policies: The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Corporation has elected to not use the 10% de minimis cost rate. The balance of the HUD Capital Advance at June 30, 2023 is $6,855,600.
Title: Note 4 Accounting Policies: The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Corporation has elected to not use the 10% de minimis cost rate. The balance of the HOME Investment Partnership Program at June 30, 2023 is $1,170,634.

Finding Details

Finding reference number: #2023-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 143-EE060-WAH-NP, 2009) Auditor non-compliance code: N – Reserve for replacement deposits Finding resolution status: Completed 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: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $7,000 Statement of condition #2023-001 (Assistance Listing No. 14.157): Effective May 1, 2023, the required monthly deposit to the reserve for replacements is $3,500; however, the Corporation did not make the monthly deposits. As of June 30, 2023, the reserve for replacements is underfunded by $7,000. Criteria: Pursuant to the Regulatory Agreement, the Corporation shall establish and maintain a reserve for replacements in a separate account and make monthly deposits in amounts as approved in writing by HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. At June 30, 2023, the Property's replacement reserve is underfunded by $7,000. Cause: The reserve for replacement deposits were suspended through April 30, 2023. The monthly deposits did not resume on May 1, 2023 as required by HUD. Recommendation: Management should transfer $7,000 from the operating account to bring the reserve for replacements current. Completion date: August 18, 2023 Management's response: Agreed. Management made a deposit to the reserve for replacement on August 18, 2023 for $7,000.
Finding reference number: #2023-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 143-EE060-WAH-NP, 2009) Auditor non-compliance code: N – Reserve for replacement deposits Finding resolution status: Completed 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: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $7,000 Statement of condition #2023-001 (Assistance Listing No. 14.157): Effective May 1, 2023, the required monthly deposit to the reserve for replacements is $3,500; however, the Corporation did not make the monthly deposits. As of June 30, 2023, the reserve for replacements is underfunded by $7,000. Criteria: Pursuant to the Regulatory Agreement, the Corporation shall establish and maintain a reserve for replacements in a separate account and make monthly deposits in amounts as approved in writing by HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. At June 30, 2023, the Property's replacement reserve is underfunded by $7,000. Cause: The reserve for replacement deposits were suspended through April 30, 2023. The monthly deposits did not resume on May 1, 2023 as required by HUD. Recommendation: Management should transfer $7,000 from the operating account to bring the reserve for replacements current. Completion date: August 18, 2023 Management's response: Agreed. Management made a deposit to the reserve for replacement on August 18, 2023 for $7,000.
Finding reference number: #2023-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 143-EE060-WAH-NP, 2009) Auditor non-compliance code: N – Reserve for replacement deposits Finding resolution status: Completed 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: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $7,000 Statement of condition #2023-001 (Assistance Listing No. 14.157): Effective May 1, 2023, the required monthly deposit to the reserve for replacements is $3,500; however, the Corporation did not make the monthly deposits. As of June 30, 2023, the reserve for replacements is underfunded by $7,000. Criteria: Pursuant to the Regulatory Agreement, the Corporation shall establish and maintain a reserve for replacements in a separate account and make monthly deposits in amounts as approved in writing by HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. At June 30, 2023, the Property's replacement reserve is underfunded by $7,000. Cause: The reserve for replacement deposits were suspended through April 30, 2023. The monthly deposits did not resume on May 1, 2023 as required by HUD. Recommendation: Management should transfer $7,000 from the operating account to bring the reserve for replacements current. Completion date: August 18, 2023 Management's response: Agreed. Management made a deposit to the reserve for replacement on August 18, 2023 for $7,000.
Finding reference number: #2023-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 143-EE060-WAH-NP, 2009) Auditor non-compliance code: N – Reserve for replacement deposits Finding resolution status: Completed 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: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $7,000 Statement of condition #2023-001 (Assistance Listing No. 14.157): Effective May 1, 2023, the required monthly deposit to the reserve for replacements is $3,500; however, the Corporation did not make the monthly deposits. As of June 30, 2023, the reserve for replacements is underfunded by $7,000. Criteria: Pursuant to the Regulatory Agreement, the Corporation shall establish and maintain a reserve for replacements in a separate account and make monthly deposits in amounts as approved in writing by HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. At June 30, 2023, the Property's replacement reserve is underfunded by $7,000. Cause: The reserve for replacement deposits were suspended through April 30, 2023. The monthly deposits did not resume on May 1, 2023 as required by HUD. Recommendation: Management should transfer $7,000 from the operating account to bring the reserve for replacements current. Completion date: August 18, 2023 Management's response: Agreed. Management made a deposit to the reserve for replacement on August 18, 2023 for $7,000.
Finding reference number: #2023-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 143-EE060-WAH-NP, 2009) Auditor non-compliance code: N – Reserve for replacement deposits Finding resolution status: Completed 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: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $7,000 Statement of condition #2023-001 (Assistance Listing No. 14.157): Effective May 1, 2023, the required monthly deposit to the reserve for replacements is $3,500; however, the Corporation did not make the monthly deposits. As of June 30, 2023, the reserve for replacements is underfunded by $7,000. Criteria: Pursuant to the Regulatory Agreement, the Corporation shall establish and maintain a reserve for replacements in a separate account and make monthly deposits in amounts as approved in writing by HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. At June 30, 2023, the Property's replacement reserve is underfunded by $7,000. Cause: The reserve for replacement deposits were suspended through April 30, 2023. The monthly deposits did not resume on May 1, 2023 as required by HUD. Recommendation: Management should transfer $7,000 from the operating account to bring the reserve for replacements current. Completion date: August 18, 2023 Management's response: Agreed. Management made a deposit to the reserve for replacement on August 18, 2023 for $7,000.
Finding reference number: #2023-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 143-EE060-WAH-NP, 2009) Auditor non-compliance code: N – Reserve for replacement deposits Finding resolution status: Completed 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: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $7,000 Statement of condition #2023-001 (Assistance Listing No. 14.157): Effective May 1, 2023, the required monthly deposit to the reserve for replacements is $3,500; however, the Corporation did not make the monthly deposits. As of June 30, 2023, the reserve for replacements is underfunded by $7,000. Criteria: Pursuant to the Regulatory Agreement, the Corporation shall establish and maintain a reserve for replacements in a separate account and make monthly deposits in amounts as approved in writing by HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. At June 30, 2023, the Property's replacement reserve is underfunded by $7,000. Cause: The reserve for replacement deposits were suspended through April 30, 2023. The monthly deposits did not resume on May 1, 2023 as required by HUD. Recommendation: Management should transfer $7,000 from the operating account to bring the reserve for replacements current. Completion date: August 18, 2023 Management's response: Agreed. Management made a deposit to the reserve for replacement on August 18, 2023 for $7,000.