S3800-010 Finding Reference Number – 2023-001
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – In progress
S3800-017 Information on Universe Population Size – 19 PRAC units
S3800-018 Sample Size Information – 5 tenant files. Errors were found on 2 out of the 5 tenants tested.
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per HUD Handbook 4350.3 Rev-1: Owners are responsible for obtaining the original signature of the head of household, spouse, any individual listed as co-head and all other adult members of the household on the HUD model lease and required lease attachments and addendums. In addition, owners are responsible for obtaining a signed declaration of citizenship or eligible noncitizen/immigration status. There are also the optional following documents Owners are responsible for providing applicants the opportunity to complete: (1) form HUD-92006, Supplement to Application for Federally Assisted Housing and (2) form HUD-27061-H, Race and Ethnic Data Reporting Form.
S3800-030 Statement of Condition –
During our audit, we noted one instance where the tenant file did not contain a signed executed HUD model lease.
In addition, during our audit, we noted one instance where management did not obtain the following documents signed by the head of household during the move-in process: (1) VAWA lease addendum, (2) HOME program lease addendum, (3) WA State Commerce HOME Student Status form, (4) form HUD-92006, (5) declaration of citizenship, (6) form HUD-27061-H.
S3800-032 Cause –
Management failed to obtain the appropriate signatures and maintain the original signed forms in the tenant’s file at the project site.
S3800-033 Effect or Potential Effect –
The procedures for maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3. This could result in units being rented to ineligible tenants or errors in rent subsidies paid by HUD.
S3800-035 Auditor Non-Compliance Code – R (Section 8 Program Administration)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 2 out of the 5 tenant files did not contain the required completed forms. This was not a statistically valid sample.
S3800-080 Recommendation –
We recommend Sessions Village 202 obtain the missing signed documents if the tenant still resides at the project. In addition, we recommend Sessions Village 202 review all tenant files to ensure all other records are complete.
Also, we recommend staff involved in the tenant move-in process review the requirements and revise their current process and procedures as needed to ensure the appropriate forms are completed correctly and kept in the tenant files going forward. Additional controls could include completing a checklist of required signed forms obtained during the move-in process.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
The first tenant listed above no longer resides at the project and a signed HUD model lease cannot be obtained. On November 7, 2023, the Property Manager at Sessions Village 202 obtained the missing signed documents for the second tenant listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – September 30, 2024
S3800-150 Response –
The first tenant listed above no longer resides at the project and a signed HUD model lease cannot be obtained. On November 7, 2023, the Property Manager at Sessions Village 202 obtained the missing signed documents for the second tenant listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-160 Contact Person First Name – Ashley
S3800-180 Contact Person Last Name – Healey
S3800-010 Finding Reference Number – 2023-002
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – In progress
S3800-017 Information on Universe Population Size – 202 checks and bank transfers, all disbursements from bank accounts
S3800-018 Sample Size Information – Sample size was 40 disbursements. Errors were found on 1 out of the 40 disbursements tested.
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per 2 CFR sections 200.302 and 200.303 of the Uniform Guidance, an entity must establish and maintain effective internal control over the federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and terms and conditions of the federal award. Allowable cost controls of Sessions Village 202 require general ledger account coding to be written on each invoice to be reviewed by the Executive Director before the invoice is processed to be paid.
S3800-030 Statement of Condition –
During our audit, we noted one invoice that did not include the general ledger account coding on the invoice, as required by Sessions Village 202’s allowable cost controls. The invoice was recorded to the proper general ledger account.
S3800-032 Cause –
Sessions Village 202 did not follow their documented internal controls over financial reporting and allowable costs to ensure general ledger coding is included on each invoice for review and approval.
S3800-033 Effect or Potential Effect –
Failure to maintain effective internal controls over compliance with federal requirements increases the risk of unauthorized or unallowable transactions occurring.
S3800-035 Auditor Non-Compliance Code – S (Internal Controls)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
A sample of 40 checks totaling $41,900 was selected for audit from a population of 202 checks totaling $186,253. The test found one check that was not in compliance with Sessions Village 202’s allowable cost controls totaling $369. The invoice was recorded to the proper general ledger account. Our sample was a statistically valid sample.
S3800-080 Recommendation –
We recommend management of Sessions Village 202 review their internal controls over the cash disbursement process with the necessary individuals involved in the process to ensure the implementation of general ledger account coding on cash disbursements is consistently performed going forward.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
The Executive Director and A/P Clerk agreed upon using certain general ledger account codes consistently for similar purchases from the same vendor. In Sessions Village 202’s accounting system, these agreed upon general ledger account codes have been pre-set as a default for certain vendors. When invoices are received that should be appropriately coded to this default general ledger account code, errors of not documenting the general ledger account code on the invoice are periodically made.
Sessions Village 202 will consistently perform the general ledger account coding internal control procedures on invoices going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – September 30, 2024
S3800-150 Response –
Sessions Village 202 will consistently perform the general ledger account coding internal control procedures on invoices going forward.
S3800-010 Finding Reference Number – 2023-001
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – In progress
S3800-017 Information on Universe Population Size – 19 PRAC units
S3800-018 Sample Size Information – 5 tenant files. Errors were found on 2 out of the 5 tenants tested.
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per HUD Handbook 4350.3 Rev-1: Owners are responsible for obtaining the original signature of the head of household, spouse, any individual listed as co-head and all other adult members of the household on the HUD model lease and required lease attachments and addendums. In addition, owners are responsible for obtaining a signed declaration of citizenship or eligible noncitizen/immigration status. There are also the optional following documents Owners are responsible for providing applicants the opportunity to complete: (1) form HUD-92006, Supplement to Application for Federally Assisted Housing and (2) form HUD-27061-H, Race and Ethnic Data Reporting Form.
S3800-030 Statement of Condition –
During our audit, we noted one instance where the tenant file did not contain a signed executed HUD model lease.
In addition, during our audit, we noted one instance where management did not obtain the following documents signed by the head of household during the move-in process: (1) VAWA lease addendum, (2) HOME program lease addendum, (3) WA State Commerce HOME Student Status form, (4) form HUD-92006, (5) declaration of citizenship, (6) form HUD-27061-H.
S3800-032 Cause –
Management failed to obtain the appropriate signatures and maintain the original signed forms in the tenant’s file at the project site.
S3800-033 Effect or Potential Effect –
The procedures for maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3. This could result in units being rented to ineligible tenants or errors in rent subsidies paid by HUD.
S3800-035 Auditor Non-Compliance Code – R (Section 8 Program Administration)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 2 out of the 5 tenant files did not contain the required completed forms. This was not a statistically valid sample.
S3800-080 Recommendation –
We recommend Sessions Village 202 obtain the missing signed documents if the tenant still resides at the project. In addition, we recommend Sessions Village 202 review all tenant files to ensure all other records are complete.
Also, we recommend staff involved in the tenant move-in process review the requirements and revise their current process and procedures as needed to ensure the appropriate forms are completed correctly and kept in the tenant files going forward. Additional controls could include completing a checklist of required signed forms obtained during the move-in process.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
The first tenant listed above no longer resides at the project and a signed HUD model lease cannot be obtained. On November 7, 2023, the Property Manager at Sessions Village 202 obtained the missing signed documents for the second tenant listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – September 30, 2024
S3800-150 Response –
The first tenant listed above no longer resides at the project and a signed HUD model lease cannot be obtained. On November 7, 2023, the Property Manager at Sessions Village 202 obtained the missing signed documents for the second tenant listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-160 Contact Person First Name – Ashley
S3800-180 Contact Person Last Name – Healey
S3800-010 Finding Reference Number – 2023-002
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – In progress
S3800-017 Information on Universe Population Size – 202 checks and bank transfers, all disbursements from bank accounts
S3800-018 Sample Size Information – Sample size was 40 disbursements. Errors were found on 1 out of the 40 disbursements tested.
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per 2 CFR sections 200.302 and 200.303 of the Uniform Guidance, an entity must establish and maintain effective internal control over the federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and terms and conditions of the federal award. Allowable cost controls of Sessions Village 202 require general ledger account coding to be written on each invoice to be reviewed by the Executive Director before the invoice is processed to be paid.
S3800-030 Statement of Condition –
During our audit, we noted one invoice that did not include the general ledger account coding on the invoice, as required by Sessions Village 202’s allowable cost controls. The invoice was recorded to the proper general ledger account.
S3800-032 Cause –
Sessions Village 202 did not follow their documented internal controls over financial reporting and allowable costs to ensure general ledger coding is included on each invoice for review and approval.
S3800-033 Effect or Potential Effect –
Failure to maintain effective internal controls over compliance with federal requirements increases the risk of unauthorized or unallowable transactions occurring.
S3800-035 Auditor Non-Compliance Code – S (Internal Controls)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
A sample of 40 checks totaling $41,900 was selected for audit from a population of 202 checks totaling $186,253. The test found one check that was not in compliance with Sessions Village 202’s allowable cost controls totaling $369. The invoice was recorded to the proper general ledger account. Our sample was a statistically valid sample.
S3800-080 Recommendation –
We recommend management of Sessions Village 202 review their internal controls over the cash disbursement process with the necessary individuals involved in the process to ensure the implementation of general ledger account coding on cash disbursements is consistently performed going forward.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
The Executive Director and A/P Clerk agreed upon using certain general ledger account codes consistently for similar purchases from the same vendor. In Sessions Village 202’s accounting system, these agreed upon general ledger account codes have been pre-set as a default for certain vendors. When invoices are received that should be appropriately coded to this default general ledger account code, errors of not documenting the general ledger account code on the invoice are periodically made.
Sessions Village 202 will consistently perform the general ledger account coding internal control procedures on invoices going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – September 30, 2024
S3800-150 Response –
Sessions Village 202 will consistently perform the general ledger account coding internal control procedures on invoices going forward.
S3800-010 Finding Reference Number – 2023-001
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – In progress
S3800-017 Information on Universe Population Size – 19 PRAC units
S3800-018 Sample Size Information – 5 tenant files. Errors were found on 2 out of the 5 tenants tested.
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per HUD Handbook 4350.3 Rev-1: Owners are responsible for obtaining the original signature of the head of household, spouse, any individual listed as co-head and all other adult members of the household on the HUD model lease and required lease attachments and addendums. In addition, owners are responsible for obtaining a signed declaration of citizenship or eligible noncitizen/immigration status. There are also the optional following documents Owners are responsible for providing applicants the opportunity to complete: (1) form HUD-92006, Supplement to Application for Federally Assisted Housing and (2) form HUD-27061-H, Race and Ethnic Data Reporting Form.
S3800-030 Statement of Condition –
During our audit, we noted one instance where the tenant file did not contain a signed executed HUD model lease.
In addition, during our audit, we noted one instance where management did not obtain the following documents signed by the head of household during the move-in process: (1) VAWA lease addendum, (2) HOME program lease addendum, (3) WA State Commerce HOME Student Status form, (4) form HUD-92006, (5) declaration of citizenship, (6) form HUD-27061-H.
S3800-032 Cause –
Management failed to obtain the appropriate signatures and maintain the original signed forms in the tenant’s file at the project site.
S3800-033 Effect or Potential Effect –
The procedures for maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3. This could result in units being rented to ineligible tenants or errors in rent subsidies paid by HUD.
S3800-035 Auditor Non-Compliance Code – R (Section 8 Program Administration)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 2 out of the 5 tenant files did not contain the required completed forms. This was not a statistically valid sample.
S3800-080 Recommendation –
We recommend Sessions Village 202 obtain the missing signed documents if the tenant still resides at the project. In addition, we recommend Sessions Village 202 review all tenant files to ensure all other records are complete.
Also, we recommend staff involved in the tenant move-in process review the requirements and revise their current process and procedures as needed to ensure the appropriate forms are completed correctly and kept in the tenant files going forward. Additional controls could include completing a checklist of required signed forms obtained during the move-in process.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
The first tenant listed above no longer resides at the project and a signed HUD model lease cannot be obtained. On November 7, 2023, the Property Manager at Sessions Village 202 obtained the missing signed documents for the second tenant listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – September 30, 2024
S3800-150 Response –
The first tenant listed above no longer resides at the project and a signed HUD model lease cannot be obtained. On November 7, 2023, the Property Manager at Sessions Village 202 obtained the missing signed documents for the second tenant listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-160 Contact Person First Name – Ashley
S3800-180 Contact Person Last Name – Healey
S3800-010 Finding Reference Number – 2023-002
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – In progress
S3800-017 Information on Universe Population Size – 202 checks and bank transfers, all disbursements from bank accounts
S3800-018 Sample Size Information – Sample size was 40 disbursements. Errors were found on 1 out of the 40 disbursements tested.
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per 2 CFR sections 200.302 and 200.303 of the Uniform Guidance, an entity must establish and maintain effective internal control over the federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and terms and conditions of the federal award. Allowable cost controls of Sessions Village 202 require general ledger account coding to be written on each invoice to be reviewed by the Executive Director before the invoice is processed to be paid.
S3800-030 Statement of Condition –
During our audit, we noted one invoice that did not include the general ledger account coding on the invoice, as required by Sessions Village 202’s allowable cost controls. The invoice was recorded to the proper general ledger account.
S3800-032 Cause –
Sessions Village 202 did not follow their documented internal controls over financial reporting and allowable costs to ensure general ledger coding is included on each invoice for review and approval.
S3800-033 Effect or Potential Effect –
Failure to maintain effective internal controls over compliance with federal requirements increases the risk of unauthorized or unallowable transactions occurring.
S3800-035 Auditor Non-Compliance Code – S (Internal Controls)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
A sample of 40 checks totaling $41,900 was selected for audit from a population of 202 checks totaling $186,253. The test found one check that was not in compliance with Sessions Village 202’s allowable cost controls totaling $369. The invoice was recorded to the proper general ledger account. Our sample was a statistically valid sample.
S3800-080 Recommendation –
We recommend management of Sessions Village 202 review their internal controls over the cash disbursement process with the necessary individuals involved in the process to ensure the implementation of general ledger account coding on cash disbursements is consistently performed going forward.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
The Executive Director and A/P Clerk agreed upon using certain general ledger account codes consistently for similar purchases from the same vendor. In Sessions Village 202’s accounting system, these agreed upon general ledger account codes have been pre-set as a default for certain vendors. When invoices are received that should be appropriately coded to this default general ledger account code, errors of not documenting the general ledger account code on the invoice are periodically made.
Sessions Village 202 will consistently perform the general ledger account coding internal control procedures on invoices going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – September 30, 2024
S3800-150 Response –
Sessions Village 202 will consistently perform the general ledger account coding internal control procedures on invoices going forward.
S3800-010 Finding Reference Number – 2023-001
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – In progress
S3800-017 Information on Universe Population Size – 19 PRAC units
S3800-018 Sample Size Information – 5 tenant files. Errors were found on 2 out of the 5 tenants tested.
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per HUD Handbook 4350.3 Rev-1: Owners are responsible for obtaining the original signature of the head of household, spouse, any individual listed as co-head and all other adult members of the household on the HUD model lease and required lease attachments and addendums. In addition, owners are responsible for obtaining a signed declaration of citizenship or eligible noncitizen/immigration status. There are also the optional following documents Owners are responsible for providing applicants the opportunity to complete: (1) form HUD-92006, Supplement to Application for Federally Assisted Housing and (2) form HUD-27061-H, Race and Ethnic Data Reporting Form.
S3800-030 Statement of Condition –
During our audit, we noted one instance where the tenant file did not contain a signed executed HUD model lease.
In addition, during our audit, we noted one instance where management did not obtain the following documents signed by the head of household during the move-in process: (1) VAWA lease addendum, (2) HOME program lease addendum, (3) WA State Commerce HOME Student Status form, (4) form HUD-92006, (5) declaration of citizenship, (6) form HUD-27061-H.
S3800-032 Cause –
Management failed to obtain the appropriate signatures and maintain the original signed forms in the tenant’s file at the project site.
S3800-033 Effect or Potential Effect –
The procedures for maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3. This could result in units being rented to ineligible tenants or errors in rent subsidies paid by HUD.
S3800-035 Auditor Non-Compliance Code – R (Section 8 Program Administration)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 2 out of the 5 tenant files did not contain the required completed forms. This was not a statistically valid sample.
S3800-080 Recommendation –
We recommend Sessions Village 202 obtain the missing signed documents if the tenant still resides at the project. In addition, we recommend Sessions Village 202 review all tenant files to ensure all other records are complete.
Also, we recommend staff involved in the tenant move-in process review the requirements and revise their current process and procedures as needed to ensure the appropriate forms are completed correctly and kept in the tenant files going forward. Additional controls could include completing a checklist of required signed forms obtained during the move-in process.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
The first tenant listed above no longer resides at the project and a signed HUD model lease cannot be obtained. On November 7, 2023, the Property Manager at Sessions Village 202 obtained the missing signed documents for the second tenant listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – September 30, 2024
S3800-150 Response –
The first tenant listed above no longer resides at the project and a signed HUD model lease cannot be obtained. On November 7, 2023, the Property Manager at Sessions Village 202 obtained the missing signed documents for the second tenant listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-160 Contact Person First Name – Ashley
S3800-180 Contact Person Last Name – Healey
S3800-010 Finding Reference Number – 2023-002
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – In progress
S3800-017 Information on Universe Population Size – 202 checks and bank transfers, all disbursements from bank accounts
S3800-018 Sample Size Information – Sample size was 40 disbursements. Errors were found on 1 out of the 40 disbursements tested.
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per 2 CFR sections 200.302 and 200.303 of the Uniform Guidance, an entity must establish and maintain effective internal control over the federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and terms and conditions of the federal award. Allowable cost controls of Sessions Village 202 require general ledger account coding to be written on each invoice to be reviewed by the Executive Director before the invoice is processed to be paid.
S3800-030 Statement of Condition –
During our audit, we noted one invoice that did not include the general ledger account coding on the invoice, as required by Sessions Village 202’s allowable cost controls. The invoice was recorded to the proper general ledger account.
S3800-032 Cause –
Sessions Village 202 did not follow their documented internal controls over financial reporting and allowable costs to ensure general ledger coding is included on each invoice for review and approval.
S3800-033 Effect or Potential Effect –
Failure to maintain effective internal controls over compliance with federal requirements increases the risk of unauthorized or unallowable transactions occurring.
S3800-035 Auditor Non-Compliance Code – S (Internal Controls)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
A sample of 40 checks totaling $41,900 was selected for audit from a population of 202 checks totaling $186,253. The test found one check that was not in compliance with Sessions Village 202’s allowable cost controls totaling $369. The invoice was recorded to the proper general ledger account. Our sample was a statistically valid sample.
S3800-080 Recommendation –
We recommend management of Sessions Village 202 review their internal controls over the cash disbursement process with the necessary individuals involved in the process to ensure the implementation of general ledger account coding on cash disbursements is consistently performed going forward.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
The Executive Director and A/P Clerk agreed upon using certain general ledger account codes consistently for similar purchases from the same vendor. In Sessions Village 202’s accounting system, these agreed upon general ledger account codes have been pre-set as a default for certain vendors. When invoices are received that should be appropriately coded to this default general ledger account code, errors of not documenting the general ledger account code on the invoice are periodically made.
Sessions Village 202 will consistently perform the general ledger account coding internal control procedures on invoices going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – September 30, 2024
S3800-150 Response –
Sessions Village 202 will consistently perform the general ledger account coding internal control procedures on invoices going forward.