FAC Explorer

Audit 303325

FY End
2023-12-31
Total Expended
$1.48M
Findings
2
Programs
2
Organization: Cleveland County Senior Citizens Housing, Inc. 053-11205 (NC)
Year: 2023 Accepted: 2024-04-11
Auditor: Bernard Robinson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393050 2023-001 - - P
969492 2023-001 - - P

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.16M Yes 1
14.195 Section 8 Housing Assistance Payments Program $324,939 - 0

Contacts

Name Title Type
LK1XL7NJK9V3 Joe Ward Auditee
3367241000 Jamie Parsons Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: 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. Cleveland County Senior Citizens Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Cleveland County Senior Citizens Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Cleveland County Senior Citizens Housing, Inc., 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 Cleveland County Senior Citizens Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cleveland County Senior Citizens Housing, Inc.
Title: LOAN OUTSTANDING Accounting Policies: 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. Cleveland County Senior Citizens Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Cleveland County Senior Citizens Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Cleveland County Senior Citizens Housing, Inc. had the following loan balance, related to federal awards, outstanding as of December 31, 2023: Program Title: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Insured Loans; Assistance Listing Number: 14.155; Amount Outstanding: $1,116,400.

Finding Details

Finding 2023-001
Finding 2023-001 - U.S. Department of Housing and Urban Development: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Insured Loans, Assistance Listing #14.155 Statement of Condition: During the year ended December 31, 2023, the Site Manager accepted cash for tenant security deposits and rental revenue that was not deposited into the security deposit or operating cash accounts, as applicable. Furthermore, the Site Manager collected laundry revenue and inappropriately applied it to tenant balances. Criteria: HUD Handbook 4370.2 REV-1, Chapter 2, Section 2-12, A, specifies that all cash receipts must be deposited in a bank account in the name of the project. Effect: Noncompliance with HUD regulations. Cause: Site employee violated the management company's policies and procedures. Context: Inquiry of management was performed. Management informed auditor that the Site Manager accepted cash for tenant security deposits and rental revenue that was not deposited into the security deposit or operating cash accounts. Questioned Costs: $1,802 Recommendation: We recommend management continue to maintain strong internal controls at the site to effectively catch any employee theft that may occur. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the Site Manager theft and will continue to ensure that strong internal controls are maintained at the site to effectively catch any employee theft that may occur.
Finding 2023-001
Finding 2023-001 - U.S. Department of Housing and Urban Development: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Insured Loans, Assistance Listing #14.155 Statement of Condition: During the year ended December 31, 2023, the Site Manager accepted cash for tenant security deposits and rental revenue that was not deposited into the security deposit or operating cash accounts, as applicable. Furthermore, the Site Manager collected laundry revenue and inappropriately applied it to tenant balances. Criteria: HUD Handbook 4370.2 REV-1, Chapter 2, Section 2-12, A, specifies that all cash receipts must be deposited in a bank account in the name of the project. Effect: Noncompliance with HUD regulations. Cause: Site employee violated the management company's policies and procedures. Context: Inquiry of management was performed. Management informed auditor that the Site Manager accepted cash for tenant security deposits and rental revenue that was not deposited into the security deposit or operating cash accounts. Questioned Costs: $1,802 Recommendation: We recommend management continue to maintain strong internal controls at the site to effectively catch any employee theft that may occur. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the Site Manager theft and will continue to ensure that strong internal controls are maintained at the site to effectively catch any employee theft that may occur.