FAC Explorer

Audit 306432

FY End
2023-12-31
Total Expended
$6.22M
Findings
2
Programs
3
Organization: Senior Citizens Housing Development Corporation of Stonington (FL)
Year: 2023 Accepted: 2024-05-16
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
397055 2023-001 - - N
973497 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $5.68M Yes 1
14.157 Supportive Housing for the Elderly - Prac $541,605 Yes 0
14.157 Supportive Housing for the Elderly - Covid-19 Prac $6,531 Yes 0

Contacts

Name Title Type
CE1HDNUCFKC7 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: Senior Citizens Housing Development Corporation of Stonington 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 Senior Citizens Housing Development Corporation of Stonington, HUD Project No. 017-EE004, 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 Senior Citizens Housing Development Corporation of Stonington, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Senior Citizens Housing Development Corporation of Stonington.
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: Senior Citizens Housing Development Corporation of Stonington has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Senior Citizens Housing Development Corporation of Stonington has received a U.S. Department of Housing and Urban Development 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. Senior Citizens Housing Development Corporation of Stonington received no additional loans during the year. The balance of the capital advance outstanding as of December 31, 2023 is $5,675,200.

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: All replacement reserve deposits and withdrawals Sample Size Information: All replacement reserve deposits and withdrawals Identification of Repeat Finding and Finding Reference Number: No Criteria: The regulatory agreement states that the mortgagor, HUD, must approve all releases from the replacement reserve and such funds must be used for the authorized purpose. Also, in accordance with HUD, required monthly deposits must be made to the Project’s replacement reserve account Statement of Condition: HUD approved a replacement reserve withdrawal for the Project’s submission of a duplicate invoice that was previously approved and released for $1,954. In addition, the Project overfunded the account by$1,575. Cause: The Project requested a release of funds for one invoice that was already released on a previously approved HUD Form-9250 request and erroneously made an additional deposit to the replacement reserve account. Effect or Potential Effect: Deficiently funded reserve for replacements and overfunded reserve for replacement account. Auditor Non-Compliance Code: N – Reserve for Replacement deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: A deposit should be made to correct the net underfunding of the replacement reserve account. The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. The Project should implement procedures to ensure that HUD Form-9250 requests do not include invoices that were requested on previously approved HUD Form-9250 submissions. Response Indicator: Agree. Completion Date: 12/31/2024 Response: We are researching the underfunding and will ensure the RR account is fully funded on a monthly basis. New procedures have been implemented to review the deposits each month to ensure amounts are proper. Additionally, 9250 process is under review to ensure invoices are submitted once on the appropriate 9250.
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: All replacement reserve deposits and withdrawals Sample Size Information: All replacement reserve deposits and withdrawals Identification of Repeat Finding and Finding Reference Number: No Criteria: The regulatory agreement states that the mortgagor, HUD, must approve all releases from the replacement reserve and such funds must be used for the authorized purpose. Also, in accordance with HUD, required monthly deposits must be made to the Project’s replacement reserve account Statement of Condition: HUD approved a replacement reserve withdrawal for the Project’s submission of a duplicate invoice that was previously approved and released for $1,954. In addition, the Project overfunded the account by$1,575. Cause: The Project requested a release of funds for one invoice that was already released on a previously approved HUD Form-9250 request and erroneously made an additional deposit to the replacement reserve account. Effect or Potential Effect: Deficiently funded reserve for replacements and overfunded reserve for replacement account. Auditor Non-Compliance Code: N – Reserve for Replacement deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: A deposit should be made to correct the net underfunding of the replacement reserve account. The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. The Project should implement procedures to ensure that HUD Form-9250 requests do not include invoices that were requested on previously approved HUD Form-9250 submissions. Response Indicator: Agree. Completion Date: 12/31/2024 Response: We are researching the underfunding and will ensure the RR account is fully funded on a monthly basis. New procedures have been implemented to review the deposits each month to ensure amounts are proper. Additionally, 9250 process is under review to ensure invoices are submitted once on the appropriate 9250.