FAC Explorer

Audit 291352

FY End
2023-06-30
Total Expended
$6.95M
Findings
4
Programs
1
Organization: Senior Citizens Housing Development Corporation of Los Angeles (FL)
Year: 2023 Accepted: 2024-02-20
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
369809 2023-001 - Yes E
369810 2023-002 - - E
946251 2023-001 - Yes E
946252 2023-002 - - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $431,119 Yes 2

Contacts

Name Title Type
MJXLJ7N5N8N1 Irene Phillips Auditee
9548359200 Jennifer R. Koffman Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION 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: Senior Citizens Housing Development Corporation of Los Angeles has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) Includes the federal grant activity of Senior Citizens Housing Development Corporation of Los Angeles, operating as Steel Plaza Apartments, HUD Project No. 122-EE022, 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 Senior Citizens Housing Development Corporation of Los Angeles, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Senior Citizens Housing Development Corporation of Los Angeles.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE PROGRAM 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: Senior Citizens Housing Development Corporation of Los Angeles has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Senior Citizens Housing Development Corporation of Los Angeles has received a HUD capital advance under Section 202 of the Housing Act of 1959. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Senior Citizens Development Corporation of Los Angeles received no additional loans during the year. The balance of the capital advance outstanding as of June 30, 2023 is $6,514,200.

Finding Details

Finding 2023-001
FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Three move-out tenants. Sample Size Information: Three move-out tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2022-002. Criteria: HUD regulations require the owner must refund the full security deposit plus accrued interest and/or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair along with a statement of the tenant’s rights under state and local laws within 21 days after the move-out date. Statement of Condition: One tenant was not refunded their security deposits within 21 days after their move-out date. Cause: The manager did not adhere to state laws and HUD regulations for refunding security deposits resulting in the untimely refund of the security deposit. Effect or Potential Effect: The Project is not in compliance with HUD regulations and state laws regarding the refunding of security deposits with the required timeframe. Auditor Non-Compliance Code: M – Security Deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: The Project should implement procedures to ensure the manager complies with state laws and HUD regulations for timely refunding of security deposits. Response Indicator: Agree. Completion Date: 11/3/2022 Response: Manager will be retrained on the regulations and procedures for refunding of security deposits within the specified time frame. Periodic follow ups will be done to ensure process is being followed.
Finding 2023-002
FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Seventy-four tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require proper maintenance of tenant files containing an apartment application that is signed and dated, and use of the Enterprise Income Verification (EIV) within 90 days of the tenant being entered into the Tenant Rental Assistance Certification System (TRACS). Statement of Condition: One tenant’s application was not signed or dated, and the initial EIV report was missing. Cause: The old Project manager did not maintain appropriate tenant eligibility documentation in accordance with HUD requirements. Effect or Potential Effect: Unable to determine date and time for the receipt of the application for proper waiting list placement and subsequent selection to occupy a unit. In addition, not verifying tenant income eligibility in accordance with HUD requirements can result in the cost of assistance and residency being disallowed. Auditor Non-Compliance Code: R – Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted.Recommendation: The Project should ensure all required tenant documentation is complete and accurate and verify tenant income through the EIV system in a timely manner. Response Indicator: Agree. Completion Date: 9/1/2022 Response: Reminders will be sent by compliance each month to all managers for their EIV reports to be run for that month. Also alerts have been set up in One Site to assist with reminders. Applications will be checked periodically for signatures and dates to ensure they are on the form.
Finding 2023-001
FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Three move-out tenants. Sample Size Information: Three move-out tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2022-002. Criteria: HUD regulations require the owner must refund the full security deposit plus accrued interest and/or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair along with a statement of the tenant’s rights under state and local laws within 21 days after the move-out date. Statement of Condition: One tenant was not refunded their security deposits within 21 days after their move-out date. Cause: The manager did not adhere to state laws and HUD regulations for refunding security deposits resulting in the untimely refund of the security deposit. Effect or Potential Effect: The Project is not in compliance with HUD regulations and state laws regarding the refunding of security deposits with the required timeframe. Auditor Non-Compliance Code: M – Security Deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: The Project should implement procedures to ensure the manager complies with state laws and HUD regulations for timely refunding of security deposits. Response Indicator: Agree. Completion Date: 11/3/2022 Response: Manager will be retrained on the regulations and procedures for refunding of security deposits within the specified time frame. Periodic follow ups will be done to ensure process is being followed.
Finding 2023-002
FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Seventy-four tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require proper maintenance of tenant files containing an apartment application that is signed and dated, and use of the Enterprise Income Verification (EIV) within 90 days of the tenant being entered into the Tenant Rental Assistance Certification System (TRACS). Statement of Condition: One tenant’s application was not signed or dated, and the initial EIV report was missing. Cause: The old Project manager did not maintain appropriate tenant eligibility documentation in accordance with HUD requirements. Effect or Potential Effect: Unable to determine date and time for the receipt of the application for proper waiting list placement and subsequent selection to occupy a unit. In addition, not verifying tenant income eligibility in accordance with HUD requirements can result in the cost of assistance and residency being disallowed. Auditor Non-Compliance Code: R – Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted.Recommendation: The Project should ensure all required tenant documentation is complete and accurate and verify tenant income through the EIV system in a timely manner. Response Indicator: Agree. Completion Date: 9/1/2022 Response: Reminders will be sent by compliance each month to all managers for their EIV reports to be run for that month. Also alerts have been set up in One Site to assist with reminders. Applications will be checked periodically for signatures and dates to ensure they are on the form.