FAC Explorer

Audit 303157

FY End
2023-12-31
Total Expended
$1.25M
Findings
2
Programs
2
Organization: Mental Retardation Community Services of Nassau County, INC 012-Hd129 (NY)
Year: 2023 Accepted: 2024-04-10
Auditor: Bdo USA PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
392864 2023-001 - - N
969306 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.20M Yes 1
14.195 Section 8 Housing Assistance Payments Program $44,779 Yes 0

Contacts

Name Title Type
GQFLNEN6LWF8 Willard Derr Auditee
5166261075 Robert McCormick Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Mental Retardation Community Services of Nassau County—Project III, Inc. HUD Project No. 012-HD129 (MRCS III) under programs of the federal government for the year ended December 31, 2023. 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 MRCS III, it is not intended to and does not present the financial position, changes in net assets, or cash flows of MRCS III. 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: MRCS III has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
2023-001 – Special Tests and Provisions - Noncompliance Information on Federal Program: U.S. Department of Housing and Urban Development, Award Listing Numbers 14.181. Criteria: 24 CFR section 891.435(a) requires “At the time of the initial execution of the lease, the Owner (or Borrower, as applicable) will require each household (or family, as applicable) occupying an assisted unit or residential space in a group home to pay a security deposit in an amount equal to one month’s tenant rent or $50, whichever is greater. The household (or family) is expected to pay the security deposit from its own resources or other available public or private resources. The Owner (or Borrower) may collect the security deposit on an installment basis.” Conditions: During our review of the chart of accounts for MRCS III, we noted that a separate tenant security deposit account did not exist. Per discussion with management, tenant security deposits were never remitted by tenants to MRCS III. Questioned Costs: None identified. Cause: Security deposits were not requested from tenants by management. Effect: A tenant security deposit account has not been established. Context: At inception, MRCS III submitted for approval to HUD a request to waive the tenant security deposit requirement. Due to the length of time which has passed, MRCS III has been unable to locate within its records any approval or denial from HUD. As a result, MRCS III has not requested for tenants to remit a security deposit upon being admitted as a tenant. Recommendation: We recommend management implements a process to obtain tenant security deposits from all current tenants and to ensure proper procedures are in place to collect tenant security deposits from all new tenants at the time of initial lease and to refund deposits to tenants upon vacating their unit. Views of Responsible Official and Planned Corrective Action: MRCS III agrees with the finding identified. MRCS III’s response to the finding is described in the accompanying management’s corrective action plan.
Finding 2023-001
2023-001 – Special Tests and Provisions - Noncompliance Information on Federal Program: U.S. Department of Housing and Urban Development, Award Listing Numbers 14.181. Criteria: 24 CFR section 891.435(a) requires “At the time of the initial execution of the lease, the Owner (or Borrower, as applicable) will require each household (or family, as applicable) occupying an assisted unit or residential space in a group home to pay a security deposit in an amount equal to one month’s tenant rent or $50, whichever is greater. The household (or family) is expected to pay the security deposit from its own resources or other available public or private resources. The Owner (or Borrower) may collect the security deposit on an installment basis.” Conditions: During our review of the chart of accounts for MRCS III, we noted that a separate tenant security deposit account did not exist. Per discussion with management, tenant security deposits were never remitted by tenants to MRCS III. Questioned Costs: None identified. Cause: Security deposits were not requested from tenants by management. Effect: A tenant security deposit account has not been established. Context: At inception, MRCS III submitted for approval to HUD a request to waive the tenant security deposit requirement. Due to the length of time which has passed, MRCS III has been unable to locate within its records any approval or denial from HUD. As a result, MRCS III has not requested for tenants to remit a security deposit upon being admitted as a tenant. Recommendation: We recommend management implements a process to obtain tenant security deposits from all current tenants and to ensure proper procedures are in place to collect tenant security deposits from all new tenants at the time of initial lease and to refund deposits to tenants upon vacating their unit. Views of Responsible Official and Planned Corrective Action: MRCS III agrees with the finding identified. MRCS III’s response to the finding is described in the accompanying management’s corrective action plan.