FAC Explorer

Audit 305929

FY End
2023-09-30
Total Expended
$3.93M
Findings
2
Programs
2
Organization: Edward Romero Terrace (FL)
Year: 2023 Accepted: 2024-05-09
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396261 2023-001 - - E
972703 2023-001 - - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $3.61M Yes 0
14.157 Supportive Housing for the Elderly - Prac $322,835 Yes 1

Contacts

Name Title Type
ET6GBML8NK16 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: Edward Romero Terrace 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 includes the federal grant activity of Edward Romero Terrace, HUD Project No. 116-EE041, 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 Edward Romero Terrace, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Edward Romero Terrace.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE 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: Edward Romero Terrace has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Edward Romero Terrace has received a HUD capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Edward Romero Terrace received no additional loans during the year. The balance of the capital advance outstanding as of September 30, 2023 was $3,612,101.

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: Forty-three tenants. Same Size Information: Five tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require: • Timely verification of tenant’s current and initial income through the use of Enterprise Income Verification (EIV) reports. • Form HUD-50059 certifications to be signed prior to the effective date. • Security deposit support be maintained. Statement of Condition: Of the tenant files selected: • Two tenant files did not contain verification of initial income through the use of EIV reports. • Two tenant files had the form HUD-50059 signed after the effective date. • One tenant file did not contain the complete criminal background check. • One tenant file did not have the apartment application signed by the tenant. • Two tenants files did not contain security deposit support. Cause: The Project did not perform and/or maintain appropriate tenant eligibility documentation in accordance with HUD requirements. Effect or Potential Effect: Improper maintenance of tenant files and unable to verify tenant eligibility and cost of assistance, and residency may be disallowed. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted. Auditor Non-Compliance Code: R – Section 8 Program Administration. Recommendation: The Project should implement procedures to ensure the manager verifies eligibility by obtaining all required documents for potential tenants and maintain support for tenant income verification through the EIV system in a timely manner. Response Indicator: Agree. Completion Date: 09/30/2024 Response: Monthly reminders are being sent to all managers to run their EIV reports for the month. In addition, random files are being reviewed by compliance to ensure EIV reports are pulled and required documentation is complete and accurate.
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: Forty-three tenants. Same Size Information: Five tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require: • Timely verification of tenant’s current and initial income through the use of Enterprise Income Verification (EIV) reports. • Form HUD-50059 certifications to be signed prior to the effective date. • Security deposit support be maintained. Statement of Condition: Of the tenant files selected: • Two tenant files did not contain verification of initial income through the use of EIV reports. • Two tenant files had the form HUD-50059 signed after the effective date. • One tenant file did not contain the complete criminal background check. • One tenant file did not have the apartment application signed by the tenant. • Two tenants files did not contain security deposit support. Cause: The Project did not perform and/or maintain appropriate tenant eligibility documentation in accordance with HUD requirements. Effect or Potential Effect: Improper maintenance of tenant files and unable to verify tenant eligibility and cost of assistance, and residency may be disallowed. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted. Auditor Non-Compliance Code: R – Section 8 Program Administration. Recommendation: The Project should implement procedures to ensure the manager verifies eligibility by obtaining all required documents for potential tenants and maintain support for tenant income verification through the EIV system in a timely manner. Response Indicator: Agree. Completion Date: 09/30/2024 Response: Monthly reminders are being sent to all managers to run their EIV reports for the month. In addition, random files are being reviewed by compliance to ensure EIV reports are pulled and required documentation is complete and accurate.