Audit 291354

FY End

2023-06-30

Total Expended

$3.21M

Findings

2

Programs

2

Organization: Jacksonville Gardens, Inc. (FL)

Year: 2023 Accepted: 2024-02-20

Auditor: Bellows Associates P A

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
369812	2023-001	-	-	E
946254	2023-001	-	-	E

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly - Capital Advance	$2.98M	Yes	0
14.157	Supportive Housing for the Elderly - Project Rental Assistance Contracts (prac)	$233,920	Yes	1

Contacts

Name	Title	Type
J6L8EUE6CA78	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: Jacksonville Gardens, Inc., 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 includes the federal grant activity of Jacksonville Gardens, Inc., operating as Worley’s Place, HUD Project No. 082-EE156, 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 Jacksonville Gardens, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Jacksonville Gardens, Inc.

Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE 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: Jacksonville Gardens, Inc., has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Jacksonville Gardens, Inc., has received a HUD capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Jacksonville Gardens, Inc., received no additional loans during the year. The balance of the capital advance outstanding as of June 30, 2023 was $2,976,500.

Finding Details

Finding 2023-001

FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-one tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require timely verification of initial income through the use of Enterprise Income Verification (EIV) reports and the corresponding documentation maintained. Statement of Condition: The Project did not perform and/or maintain the initial EIV for three tenants. Cause: The manager did not maintain appropriate tenant eligibility documentation in accordance with HUD requirements. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance, residency may be 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 will be adopted. Recommendation: Management should verify initial tenant income through the EIV system in a timely manner and maintain all required documentation in the tenant files. Response Indicator: Agree. Completion Date: 06/30/2024 Response: The Manager has been re-trained on the importance of, and how to pull the 90-day EIV Reports. They have also been re-trained in running reports in a timely manner and making sure they maintain copies of the EIV 90-day report in the tenant file. Periodic checks will be done going forward to ensure this is being followed.

Finding 2023-001

FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-one tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require timely verification of initial income through the use of Enterprise Income Verification (EIV) reports and the corresponding documentation maintained. Statement of Condition: The Project did not perform and/or maintain the initial EIV for three tenants. Cause: The manager did not maintain appropriate tenant eligibility documentation in accordance with HUD requirements. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance, residency may be 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 will be adopted. Recommendation: Management should verify initial tenant income through the EIV system in a timely manner and maintain all required documentation in the tenant files. Response Indicator: Agree. Completion Date: 06/30/2024 Response: The Manager has been re-trained on the importance of, and how to pull the 90-day EIV Reports. They have also been re-trained in running reports in a timely manner and making sure they maintain copies of the EIV 90-day report in the tenant file. Periodic checks will be done going forward to ensure this is being followed.