FAC Explorer

Audit 30255

FY End
2022-12-31
Total Expended
$12.00M
Findings
8
Programs
1
Organization: Abiding Peace Senior Housing Corporation (NJ)
Year: 2022 Accepted: 2023-04-17
Auditor: Baker Tilly USA LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
29103 2022-002 Significant Deficiency - E
29104 2022-003 Significant Deficiency - A
29105 2022-002 Significant Deficiency - E
29106 2022-003 Significant Deficiency - A
605545 2022-002 Significant Deficiency - E
605546 2022-003 Significant Deficiency - A
605547 2022-002 Significant Deficiency - E
605548 2022-003 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $586,491 Yes 2

Contacts

Name Title Type
NKAHML7KU1S4 Jeannine Richman Auditee
6097811379 Heather Weber Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The Schedule includes the federal grant activity of the Corporation and is prepared on the accrual basisof accounting. The information in this Schedule is presented in accordance with the requirements ofUniform Guidance. Therefore, some amounts presented in this Schedule may differ from amountspresented in, or used in the preparation of, the financial statements. There were no pass-throughamounts to subrecipients for December 31, 2022. 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 11416100. The Corporation has received HUD Capital Advances under Section 202 of the National Housing Act(Capital Advances). All Capital Advances made to the Corporation are included in the federalexpenditures presented in the Schedule. The capital advance balance at the beginning of the year isincluded in the federal expenditures presented in the Schedule. This is also the balance at December 31,2022. The Corporation received no additional Capital Advances during the year ended December 31,2022. The Corporation received $586,491 in project rental assistance payments under a Project RentalAssistance Contract under the same Assistance Listing Number (14.157), which is separately presentedon the Schedule.
Title: BASIS OF PRESENTATION Accounting Policies: The Schedule includes the federal grant activity of the Corporation and is prepared on the accrual basisof accounting. The information in this Schedule is presented in accordance with the requirements ofUniform Guidance. Therefore, some amounts presented in this Schedule may differ from amountspresented in, or used in the preparation of, the financial statements. There were no pass-throughamounts to subrecipients for December 31, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federalgrant activity of Abiding Peace Senior Housing Corporation (the Corporation) under programs of thefederal government for the year ended December 31, 2022. The information in the Schedule ispresented 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 theCorporation, it is not intended to and does not present the financial position, changes in net assets orcash flows of the Corporation.

Finding Details

Finding 2022-002
Finding 2022-002: Tenant Eligibility - Internal Control Document Maintenance - Significant Deficiency Assistance List Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Pass-Through Entity: N/A Criteria: Under the HUD Occupancy Handbook, Chapter 5: Determining Income and Calculating Rent, the Corporation must have the family's annual income less allowable deduction to calculate the amount of assistance is paid on behalf of the family. Questioned Cost: None. Condition: One of the twelve tenants selected for testing provided incorrect information on the HUD-50059 form. This was not a statistically valid sample. Context: We identified one tenant (out of twelve selected tenants) that did not have the proper support for their listed assets per the HUD form 50059. Effect: There was one tenant whose certification was completed without the proper documentation for determining eligibility. Cause: This was an oversight by the Corporation's personnel. Recommendation: We recommend the Corporation implement procedures over internal controls so that tenant files contain proper documentation.
Finding 2022-003
Finding 2022-003: Activities Allowed or Unallowed - Expenditures - Significant Deficiency Assistance Listing Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Criteria: Project Rental Assistance Contract (PRAC) funds may be used for expenses that are reasonable and necessary to the operation of the project as provided for in the Regulatory Agreement between HUD and the project owner. Expenses reported should be incurred within the federal award year. Questioned Costs: $69.64 Condition: One out of the twenty-five expenditures selected for testing was incurred in December 2021. This was not a statistically valid sample. Effect: Expenditure was recorded in incorrect project year. Cause: Error made by staff. The invoice was received late for fiscal year 2021, however site staff entered the invoice in 2022 when received. Recommendation: We recommend the Corporation implement procedures to ensure that proper cutoff is obtained related to expenses paid with PRAC funds.
Finding 2022-002
Finding 2022-002: Tenant Eligibility - Internal Control Document Maintenance - Significant Deficiency Assistance List Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Pass-Through Entity: N/A Criteria: Under the HUD Occupancy Handbook, Chapter 5: Determining Income and Calculating Rent, the Corporation must have the family's annual income less allowable deduction to calculate the amount of assistance is paid on behalf of the family. Questioned Cost: None. Condition: One of the twelve tenants selected for testing provided incorrect information on the HUD-50059 form. This was not a statistically valid sample. Context: We identified one tenant (out of twelve selected tenants) that did not have the proper support for their listed assets per the HUD form 50059. Effect: There was one tenant whose certification was completed without the proper documentation for determining eligibility. Cause: This was an oversight by the Corporation's personnel. Recommendation: We recommend the Corporation implement procedures over internal controls so that tenant files contain proper documentation.
Finding 2022-003
Finding 2022-003: Activities Allowed or Unallowed - Expenditures - Significant Deficiency Assistance Listing Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Criteria: Project Rental Assistance Contract (PRAC) funds may be used for expenses that are reasonable and necessary to the operation of the project as provided for in the Regulatory Agreement between HUD and the project owner. Expenses reported should be incurred within the federal award year. Questioned Costs: $69.64 Condition: One out of the twenty-five expenditures selected for testing was incurred in December 2021. This was not a statistically valid sample. Effect: Expenditure was recorded in incorrect project year. Cause: Error made by staff. The invoice was received late for fiscal year 2021, however site staff entered the invoice in 2022 when received. Recommendation: We recommend the Corporation implement procedures to ensure that proper cutoff is obtained related to expenses paid with PRAC funds.
Finding 2022-002
Finding 2022-002: Tenant Eligibility - Internal Control Document Maintenance - Significant Deficiency Assistance List Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Pass-Through Entity: N/A Criteria: Under the HUD Occupancy Handbook, Chapter 5: Determining Income and Calculating Rent, the Corporation must have the family's annual income less allowable deduction to calculate the amount of assistance is paid on behalf of the family. Questioned Cost: None. Condition: One of the twelve tenants selected for testing provided incorrect information on the HUD-50059 form. This was not a statistically valid sample. Context: We identified one tenant (out of twelve selected tenants) that did not have the proper support for their listed assets per the HUD form 50059. Effect: There was one tenant whose certification was completed without the proper documentation for determining eligibility. Cause: This was an oversight by the Corporation's personnel. Recommendation: We recommend the Corporation implement procedures over internal controls so that tenant files contain proper documentation.
Finding 2022-003
Finding 2022-003: Activities Allowed or Unallowed - Expenditures - Significant Deficiency Assistance Listing Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Criteria: Project Rental Assistance Contract (PRAC) funds may be used for expenses that are reasonable and necessary to the operation of the project as provided for in the Regulatory Agreement between HUD and the project owner. Expenses reported should be incurred within the federal award year. Questioned Costs: $69.64 Condition: One out of the twenty-five expenditures selected for testing was incurred in December 2021. This was not a statistically valid sample. Effect: Expenditure was recorded in incorrect project year. Cause: Error made by staff. The invoice was received late for fiscal year 2021, however site staff entered the invoice in 2022 when received. Recommendation: We recommend the Corporation implement procedures to ensure that proper cutoff is obtained related to expenses paid with PRAC funds.
Finding 2022-002
Finding 2022-002: Tenant Eligibility - Internal Control Document Maintenance - Significant Deficiency Assistance List Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Pass-Through Entity: N/A Criteria: Under the HUD Occupancy Handbook, Chapter 5: Determining Income and Calculating Rent, the Corporation must have the family's annual income less allowable deduction to calculate the amount of assistance is paid on behalf of the family. Questioned Cost: None. Condition: One of the twelve tenants selected for testing provided incorrect information on the HUD-50059 form. This was not a statistically valid sample. Context: We identified one tenant (out of twelve selected tenants) that did not have the proper support for their listed assets per the HUD form 50059. Effect: There was one tenant whose certification was completed without the proper documentation for determining eligibility. Cause: This was an oversight by the Corporation's personnel. Recommendation: We recommend the Corporation implement procedures over internal controls so that tenant files contain proper documentation.
Finding 2022-003
Finding 2022-003: Activities Allowed or Unallowed - Expenditures - Significant Deficiency Assistance Listing Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Criteria: Project Rental Assistance Contract (PRAC) funds may be used for expenses that are reasonable and necessary to the operation of the project as provided for in the Regulatory Agreement between HUD and the project owner. Expenses reported should be incurred within the federal award year. Questioned Costs: $69.64 Condition: One out of the twenty-five expenditures selected for testing was incurred in December 2021. This was not a statistically valid sample. Effect: Expenditure was recorded in incorrect project year. Cause: Error made by staff. The invoice was received late for fiscal year 2021, however site staff entered the invoice in 2022 when received. Recommendation: We recommend the Corporation implement procedures to ensure that proper cutoff is obtained related to expenses paid with PRAC funds.