FAC Explorer

Audit 304886

FY End
2023-12-31
Total Expended
$5.91M
Findings
2
Programs
3
Organization: 5199 Mission Street Senior Housing, Inc. (CA)
Year: 2023 Accepted: 2024-04-29
Auditor: Snd Partners LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
394981 2023-001 - - N
971423 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $1.03M - 0
14.157 Supportive Housing for the Elderly $268,970 Yes 0
14.239 Home Investment Partnerships Program $100,000 - 0

Contacts

Name Title Type
GSAFSD773982 Adeline Siew Auditee
4152062140 Courtney Sharp Auditor
No contacts on file

Notes to SEFA

Title: NOTE C – LOAN PROGRAM BALANCES OUTSTANDING Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of 5199 Mission Street Senior Housing, Inc., HUD Project No. 121-EE151-NP-WAH, 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, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of 5199 Mission Street Senior Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of 5199 Mission Street Senior Housing, Inc. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principals 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: 5199 Mission Street Senior Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Loan balances outstanding as of December 31, 2023 are as follows: Capital Advance Program Mortgage Note $ 4,515,000 HOME Investments Partnership Program $ 100,000

Finding Details

Finding 2023-001
Finding # 2023-001 Federal Grantor: U.S. Department of Housing and Urban Development CFDA# / Program : 14.157 - Supportive Housing for the Elderly Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: Project is required to make twelve (12) monthly deposits to the reserve for replacements of $2,353. Sample size information: Tests were performed on the 12 required monthly deposits. Criteria: The Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement signed by the Project on December 17th, 2003 requires the Project to make twelve (12) monthly deposits to the reserve for replacements of $2,353. Statement of Condition: A waiver for 3 of the 12 monthly was received from HUD, the remaining 9 of 12 deposits were not made to the reserve for replacements resulting in $21,177 of delinquent deposits due the reserve for replacements. Cause: A deficiency in controls over compliance with the compliance requirements in the Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Effect or Potential Effect: The Project is not in compliance with the Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Auditor Non-Compliance Code: N - Reserve for Replacements deposits Questioned Costs: No questioned costs associated with this finding. Reporting Views of Responsible Officials: Concur with finding. Context: The Project is not in compliance with the Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Recommendations: We recommend that Management review their controls over compliance with the compliance requirements in the Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Administrative delays resulted in poor cash flow in 2023. Those delays have been resolved and Management expects to fund the replacement reserve adequately for 2024 and catch up with the missed deposits from 2023. Response Indicator Agree Completion Date 12/31/2024 Response Administrative delays resulted in poor cash flow in 2023. Those delays have been resolved and we expect to fund the replacement reserve adequately for 2024 and catch up with the missed deposits from 2023.
Finding 2023-001
Finding # 2023-001 Federal Grantor: U.S. Department of Housing and Urban Development CFDA# / Program : 14.157 - Supportive Housing for the Elderly Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: Project is required to make twelve (12) monthly deposits to the reserve for replacements of $2,353. Sample size information: Tests were performed on the 12 required monthly deposits. Criteria: The Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement signed by the Project on December 17th, 2003 requires the Project to make twelve (12) monthly deposits to the reserve for replacements of $2,353. Statement of Condition: A waiver for 3 of the 12 monthly was received from HUD, the remaining 9 of 12 deposits were not made to the reserve for replacements resulting in $21,177 of delinquent deposits due the reserve for replacements. Cause: A deficiency in controls over compliance with the compliance requirements in the Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Effect or Potential Effect: The Project is not in compliance with the Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Auditor Non-Compliance Code: N - Reserve for Replacements deposits Questioned Costs: No questioned costs associated with this finding. Reporting Views of Responsible Officials: Concur with finding. Context: The Project is not in compliance with the Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Recommendations: We recommend that Management review their controls over compliance with the compliance requirements in the Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Administrative delays resulted in poor cash flow in 2023. Those delays have been resolved and Management expects to fund the replacement reserve adequately for 2024 and catch up with the missed deposits from 2023. Response Indicator Agree Completion Date 12/31/2024 Response Administrative delays resulted in poor cash flow in 2023. Those delays have been resolved and we expect to fund the replacement reserve adequately for 2024 and catch up with the missed deposits from 2023.