FAC Explorer

Audit 29890

FY End
2022-09-30
Total Expended
$8.72M
Findings
6
Programs
2
Organization: Piazza Apartments (FL)
Year: 2022 Accepted: 2023-01-09
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
29139 2022-001 - - N
29140 2022-002 - - E
29141 2022-003 - - N
605581 2022-001 - - N
605582 2022-002 - - E
605583 2022-003 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly- Capital Advance $8.59M Yes 1
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract (prac) $129,258 Yes 2

Contacts

Name Title Type
KLWMXC88DGL5 Irene Phillips Auditee
9548359200 Jennifer R. Koffman Auditor
No contacts on file

Notes to SEFA

Title: NOTE C U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal grant activity ofPiazza Apartments, HUD Project No. 143-EE067 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, andAudit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only aselected portion of the operations of Piazza Apartments, it is not intended to and does not present thefinancial position, changes in net assets, or cash flows of Piazza Apartments.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, whereincertain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Piazza Apartments has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Piazza Apartments 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. Piazza Apartments received no additional loans during the year. The balance of the capital advance outstanding as of September 30, 2022 was $8,594,700.

Finding Details

Finding 2022-001
Finding No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All activity in the replacement reserve account for the year ended September 30, 2022. Sample Size Information: All replacement reserve withdrawals for the year ended September 30, 2022. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, the Project should provide a copy of the paid invoice with the HUD-9250 form when requesting reimbursement for completed work, and duplicate reimbursements should not be made. Statement of Condition: Withdrawals from the replacement reserve account were made using duplicate and/or incorrect invoices resulting in total excess withdrawals from the replacement reserve account of $7,979. Cause: The Project requested and received duplicate reimbursements of three invoices totaling $7,939 that were not promptly returned to the replacement reserve account. In addition, the Project did not return $40 to the replacement reserve account for an overcharged vendor invoice that was reimbursed from the replacement reserve account. Effect or Potential Effect: The Project misused the funds from the replacement reserve account. Auditor Non-Compliance Cod e : A ? Unauthorized withdrawals from replacement reserve account Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should return the excess withdrawals to the replacement reserve account. Response Indicator: Agree. Completion Date: 9/30/2023 Response: Management has incorporated 9250 training into both the new hire training and the annual managers conference training.
Finding 2022-002
Finding No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Sixty-two tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires timely verification of tenant?s initial income through the use of Enterprise Income Verification (EIV) reports. Statement of Condition: The Project did not complete and maintain the initial EIV report within 90 days for one tenant. Cause: The Project did not perform timely income verification required by HUD nor maintain appropriate tenant eligibility documentation required by HUD. Effect or Potential Effect: Unable to verify tenant?s information via the EIV system. Auditor Non-Compliance Cod e : R ? Section 8 Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should verify initial tenant income through the EIV system in a timely manner. Response Indicator: Agree. Completion Date: 9/1/2022 Response: Last month automatic alerts were activated in One Site, based on individual tenant move in dates to remind the manager it is time to pull the 90-day EIV Income Report. All managers have been trained that the 90-day EIV Income reports are required and must be pulled, reviewed, and placed in the tenant file.
Finding 2022-003
Finding No. 2022-003: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, application for renewal of the PRAC contracts must be completed within 120 days of the contract expiration date. Statement of Condition: The Project did not complete the renewal process within 120 days of the contract expiration date. Cause: The Project did not follow HUD regulations for contract renewal resulting in the delay of HUD funding and short-term l oans taken from the replacement reserve. Effect or Potential Effect: The Project had to take short term loans from the replacement serve account as a result of an untimely PRAC renewal. Auditor Non-Compliance Cod e : R ? Section 8 Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should comply with HUD regulations for the timely renewal of the PRAC contract. Response Indicator: Agree. Completion Date: 1/7/2022 Response: Management has established a compliance department in addition to utilizing a compliance monitoring software. Both will assist in monitoring contract renewals thus ensuring timely submissions per HUD guidelines.
Finding 2022-001
Finding No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All activity in the replacement reserve account for the year ended September 30, 2022. Sample Size Information: All replacement reserve withdrawals for the year ended September 30, 2022. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, the Project should provide a copy of the paid invoice with the HUD-9250 form when requesting reimbursement for completed work, and duplicate reimbursements should not be made. Statement of Condition: Withdrawals from the replacement reserve account were made using duplicate and/or incorrect invoices resulting in total excess withdrawals from the replacement reserve account of $7,979. Cause: The Project requested and received duplicate reimbursements of three invoices totaling $7,939 that were not promptly returned to the replacement reserve account. In addition, the Project did not return $40 to the replacement reserve account for an overcharged vendor invoice that was reimbursed from the replacement reserve account. Effect or Potential Effect: The Project misused the funds from the replacement reserve account. Auditor Non-Compliance Cod e : A ? Unauthorized withdrawals from replacement reserve account Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should return the excess withdrawals to the replacement reserve account. Response Indicator: Agree. Completion Date: 9/30/2023 Response: Management has incorporated 9250 training into both the new hire training and the annual managers conference training.
Finding 2022-002
Finding No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Sixty-two tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires timely verification of tenant?s initial income through the use of Enterprise Income Verification (EIV) reports. Statement of Condition: The Project did not complete and maintain the initial EIV report within 90 days for one tenant. Cause: The Project did not perform timely income verification required by HUD nor maintain appropriate tenant eligibility documentation required by HUD. Effect or Potential Effect: Unable to verify tenant?s information via the EIV system. Auditor Non-Compliance Cod e : R ? Section 8 Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should verify initial tenant income through the EIV system in a timely manner. Response Indicator: Agree. Completion Date: 9/1/2022 Response: Last month automatic alerts were activated in One Site, based on individual tenant move in dates to remind the manager it is time to pull the 90-day EIV Income Report. All managers have been trained that the 90-day EIV Income reports are required and must be pulled, reviewed, and placed in the tenant file.
Finding 2022-003
Finding No. 2022-003: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, application for renewal of the PRAC contracts must be completed within 120 days of the contract expiration date. Statement of Condition: The Project did not complete the renewal process within 120 days of the contract expiration date. Cause: The Project did not follow HUD regulations for contract renewal resulting in the delay of HUD funding and short-term l oans taken from the replacement reserve. Effect or Potential Effect: The Project had to take short term loans from the replacement serve account as a result of an untimely PRAC renewal. Auditor Non-Compliance Cod e : R ? Section 8 Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should comply with HUD regulations for the timely renewal of the PRAC contract. Response Indicator: Agree. Completion Date: 1/7/2022 Response: Management has established a compliance department in addition to utilizing a compliance monitoring software. Both will assist in monitoring contract renewals thus ensuring timely submissions per HUD guidelines.