FAC Explorer

Audit 305918

FY End
2023-09-30
Total Expended
$1.00M
Findings
4
Programs
2
Organization: Chateau Cushnoc, Inc. (FL)
Year: 2023 Accepted: 2024-05-09
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396255 2023-001 - - E
396256 2023-002 - - N
972697 2023-001 - - E
972698 2023-002 - - N

Programs

ALN Program Spent Major Findings
14.157 Section 202 Supportive Housing for the Elderly $285,818 Yes 2
14.195 Section 8 Housing Assistance Payments Program $5,993 - 0

Contacts

Name Title Type
CM7MS6QWU6L9 Irene Phillips Auditee
9548359200 Jennifer R. Koffman 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. De Minimis Rate Used: N Rate Explanation: Chateau Cushnoc, 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 (Schedule) includes the federal grant activity of Chateau Cushnoc, Inc., HUD Project No. 024-EH080, 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 (CFR) 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 Chateau Cushnoc, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Chateau Cushnoc, Inc.
Title: U.S. DEPARTMENT OF HUD DIRECT LOAN PROGRAM 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. De Minimis Rate Used: N Rate Explanation: Chateau Cushnoc, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Chateau Cushnoc, Inc. has received a U.S. Department of HUD direct loan under Section 202 of the Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Chateau Cushnoc, Inc. received no additional loans during the year. The balance of the loan outstanding as of September 30, 2023 was $42,732.

Finding Details

Finding 2023-001
FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Sixty-eight tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires that all tenants have criminal background checks performed prior to acceptance as residents, that unit inspections be performed annually, and that all required documentation be maintained in tenant files. Statement of Condition: One tenant’s file did not contain a criminal background check, one tenant’s file did not contain an annual unit inspection, and two tenant files did not contain security deposit payment support. Cause: The Project did not perform and/or maintain a criminal background check on one tenant, did not perform and/or maintain an annual unit inspection for one tenant, and did not maintain security deposit payment support for two tenants. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency may be disallowed, unable to determine whether the units have sustained damage requiring repair, and security deposit refunds for departing tenants may not be appropriately determined. Auditor Non-Compliance Code: R – Section 8 Program Admin. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should implement procedures to ensure that the appropriate initial eligibility procedures are performed for potential tenants and that tenant files are properly maintained. Response Indicator: Agree. Completion Date: 9/30/2024 Response: Compliance hired a new compliance position for this area who is reviewing new move in files and recertification files for accuracy. In addition, training is being completed with then manager regarding screening, unit inspections, and security deposit back up verifications.
Finding 2023-002
FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: All replacement reserve deposits for the year ended September 30, 2023. Sample Size Information: All replacement reserve deposits for the year ended September 30, 2023. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulation, timely monthly deposits must be made to the replacement reserve account. Statement of Condition: The Project underfunded the account by $3,036. Cause: The Project did not fund the replacement reserve account for one month. Effect or Potential Effect: Deficiently funded replacement reserve. Auditor Non-Compliance Code: N – Reserve for Replacements Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 10/30/2023 Response: Deposits are made to the replacement reserves on a monthly basis. A new checklist is being implemented to ensure the accuracy of the amounts and completeness of the transfers.
Finding 2023-001
FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Sixty-eight tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires that all tenants have criminal background checks performed prior to acceptance as residents, that unit inspections be performed annually, and that all required documentation be maintained in tenant files. Statement of Condition: One tenant’s file did not contain a criminal background check, one tenant’s file did not contain an annual unit inspection, and two tenant files did not contain security deposit payment support. Cause: The Project did not perform and/or maintain a criminal background check on one tenant, did not perform and/or maintain an annual unit inspection for one tenant, and did not maintain security deposit payment support for two tenants. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency may be disallowed, unable to determine whether the units have sustained damage requiring repair, and security deposit refunds for departing tenants may not be appropriately determined. Auditor Non-Compliance Code: R – Section 8 Program Admin. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should implement procedures to ensure that the appropriate initial eligibility procedures are performed for potential tenants and that tenant files are properly maintained. Response Indicator: Agree. Completion Date: 9/30/2024 Response: Compliance hired a new compliance position for this area who is reviewing new move in files and recertification files for accuracy. In addition, training is being completed with then manager regarding screening, unit inspections, and security deposit back up verifications.
Finding 2023-002
FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: All replacement reserve deposits for the year ended September 30, 2023. Sample Size Information: All replacement reserve deposits for the year ended September 30, 2023. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulation, timely monthly deposits must be made to the replacement reserve account. Statement of Condition: The Project underfunded the account by $3,036. Cause: The Project did not fund the replacement reserve account for one month. Effect or Potential Effect: Deficiently funded replacement reserve. Auditor Non-Compliance Code: N – Reserve for Replacements Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 10/30/2023 Response: Deposits are made to the replacement reserves on a monthly basis. A new checklist is being implemented to ensure the accuracy of the amounts and completeness of the transfers.