FAC Explorer

Audit 29888

FY End
2022-06-30
Total Expended
$1.70M
Findings
8
Programs
1
Organization: Cornerstone Housing North, Inc. (NH)
Year: 2022 Accepted: 2023-03-28
Auditor: Leone McDonnell & Roberts P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
37777 2022-001 - Yes E
37778 2022-002 - Yes E
37779 2022-001 - Yes E
37780 2022-002 - Yes E
614219 2022-001 - Yes E
614220 2022-002 - Yes E
614221 2022-001 - Yes E
614222 2022-002 - Yes E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $86,177 Yes 2

Contacts

Name Title Type
LEJBJV2JA8N6 Randall Pilotte Auditee
6037527001 Shauna Brown Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards includes the federal awardactivity of Cornerstone Housing North, Inc., HUD Project No. 024-EE084, and is presented onthe accrual basis of accounting. The information in this schedule is presented in accordancewith the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operationsof Cornerstone Housing North, Inc., it is not intended to and does not present the financialposition, changes in net assets, or cash flows of Cornerstone Housing North, Inc.NOTE B: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting . Suchexpenditures 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.Cornerstone Housing North, Inc. has elected not to use the 10 percent de minimis indirect costrate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 1617600.

Finding Details

Finding 2022-001
Information on Universe Population Size: Population size was 16 files. Sample Size Information: Five tenant files were tested. Identification of Repeat Finding: Repeat finding . See 2021-001 . Criteria: HUD requires verification of income for eligibility and annual re-certification and rent calculation. Condition: Tenant eligibility, rent and tenant assistance were not correct. Cause: Oversight by property manager. Effect: Tenants who are not eligible may be living at the property and receiving subsidy. Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted several files in which the income and/or expenses were not calculated correctly. Recommendation: A procedure be implemented to ensure that all tenant income and expenses are calculated correctly.
Finding 2022-002
Information on Universe Population Size: Population size was 16 files. Sample Size Information: Five tenant files were tested . Identification of Repeat Finding: Repeat finding . See 2021-002. Criteria: HUD requires that third party verification, confirmations and back up documentation for tenant annual re-certifications be maintained in the files. Additionally, HUD requires certain tenant forms and signatures to be kept in the tenant files. Condition: Some tenant files were missing required documents. Cause: Oversight by property manager. Effect: Auditor could not verify the tenant income and expense amounts in the annual re-certifications. Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted several files in which the income and/or expenses could not be recalculated due to lack of back-up documentation. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all required documentation is present in the files.
Finding 2022-001
Information on Universe Population Size: Population size was 16 files. Sample Size Information: Five tenant files were tested. Identification of Repeat Finding: Repeat finding . See 2021-001 . Criteria: HUD requires verification of income for eligibility and annual re-certification and rent calculation. Condition: Tenant eligibility, rent and tenant assistance were not correct. Cause: Oversight by property manager. Effect: Tenants who are not eligible may be living at the property and receiving subsidy. Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted several files in which the income and/or expenses were not calculated correctly. Recommendation: A procedure be implemented to ensure that all tenant income and expenses are calculated correctly.
Finding 2022-002
Information on Universe Population Size: Population size was 16 files. Sample Size Information: Five tenant files were tested . Identification of Repeat Finding: Repeat finding . See 2021-002. Criteria: HUD requires that third party verification, confirmations and back up documentation for tenant annual re-certifications be maintained in the files. Additionally, HUD requires certain tenant forms and signatures to be kept in the tenant files. Condition: Some tenant files were missing required documents. Cause: Oversight by property manager. Effect: Auditor could not verify the tenant income and expense amounts in the annual re-certifications. Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted several files in which the income and/or expenses could not be recalculated due to lack of back-up documentation. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all required documentation is present in the files.
Finding 2022-001
Information on Universe Population Size: Population size was 16 files. Sample Size Information: Five tenant files were tested. Identification of Repeat Finding: Repeat finding . See 2021-001 . Criteria: HUD requires verification of income for eligibility and annual re-certification and rent calculation. Condition: Tenant eligibility, rent and tenant assistance were not correct. Cause: Oversight by property manager. Effect: Tenants who are not eligible may be living at the property and receiving subsidy. Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted several files in which the income and/or expenses were not calculated correctly. Recommendation: A procedure be implemented to ensure that all tenant income and expenses are calculated correctly.
Finding 2022-002
Information on Universe Population Size: Population size was 16 files. Sample Size Information: Five tenant files were tested . Identification of Repeat Finding: Repeat finding . See 2021-002. Criteria: HUD requires that third party verification, confirmations and back up documentation for tenant annual re-certifications be maintained in the files. Additionally, HUD requires certain tenant forms and signatures to be kept in the tenant files. Condition: Some tenant files were missing required documents. Cause: Oversight by property manager. Effect: Auditor could not verify the tenant income and expense amounts in the annual re-certifications. Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted several files in which the income and/or expenses could not be recalculated due to lack of back-up documentation. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all required documentation is present in the files.
Finding 2022-001
Information on Universe Population Size: Population size was 16 files. Sample Size Information: Five tenant files were tested. Identification of Repeat Finding: Repeat finding . See 2021-001 . Criteria: HUD requires verification of income for eligibility and annual re-certification and rent calculation. Condition: Tenant eligibility, rent and tenant assistance were not correct. Cause: Oversight by property manager. Effect: Tenants who are not eligible may be living at the property and receiving subsidy. Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted several files in which the income and/or expenses were not calculated correctly. Recommendation: A procedure be implemented to ensure that all tenant income and expenses are calculated correctly.
Finding 2022-002
Information on Universe Population Size: Population size was 16 files. Sample Size Information: Five tenant files were tested . Identification of Repeat Finding: Repeat finding . See 2021-002. Criteria: HUD requires that third party verification, confirmations and back up documentation for tenant annual re-certifications be maintained in the files. Additionally, HUD requires certain tenant forms and signatures to be kept in the tenant files. Condition: Some tenant files were missing required documents. Cause: Oversight by property manager. Effect: Auditor could not verify the tenant income and expense amounts in the annual re-certifications. Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted several files in which the income and/or expenses could not be recalculated due to lack of back-up documentation. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all required documentation is present in the files.