FAC Explorer

Audit 307273

FY End
2023-12-31
Total Expended
$2.42M
Findings
4
Programs
1
Organization: Keystone Place Housing Corporation (MO)
Year: 2023 Accepted: 2024-05-28
Auditor: Welch & Associates LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
398561 2023-001 Significant Deficiency Yes N
398562 2023-002 Significant Deficiency Yes N
975003 2023-001 Significant Deficiency Yes N
975004 2023-002 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $47,017 Yes 0

Contacts

Name Title Type
HBFHLEXDSRN6 Rodney Potter Auditee
8163643827 Brian Welch Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the GAAP 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the De Minimis10% Indirect Cost Rate The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Keystone Place Housing Corporation (the Organization) 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards ( Uniform Guidance). Because the Schedule presents only a selected portion of operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Note 4. Balance of Outstanding Loan Accounting Policies: Expenditures reported on the Schedule are reported on the GAAP 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the De Minimis10% Indirect Cost Rate The balance of the Supportive Housing for Persons with Disabilities (Section 811) loan as of December 31, 2023 was $2,377,500

Finding Details

Finding 2023-001
S3800-010: Finding Reference Number 2023-001 (Significant Deficiency) S3800-011: Program Information Federal Program: Supportive Housing for Persons with Disabilities – Section 811 Federal Agency: Department of Housing and Urban Development Assistance Listing #: 14.181 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 66 S3800-018: Sample Size Information 7 S3800-019: Identification of Repeat Finding and Finding Reference Number 2022-001 S3800-020: Criteria Per HUD Handbook 4381.5, REV-2, CHG-2, requires owners of multifamily housing to follow specific guidelines and determine requirements are being met for residents requesting maintenance of property via a work order system in compliance with management’s procedures. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2023 financial statements, we noted that HUD requirements related to housing quality standards were not properly followed. We tested a sample of seven work orders and noted that a proper and efficient work order system was not in place; as the Organization has tenants submit paper maintenance work order request forms, however the maintenance personnel does not on sign / initial each work order as completed, provide the date of their completion, and /or list the work performed to resolve the tenant request on the work order. Someone places a checkmark on the work order request form with no additional information. S3800-032: Cause The Organization did not follow HUD required procedures for housing quality standards. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to ensuring a properly functioning work order system is in place. S3800-035: Auditor Non-Compliance Code: S – Internal control deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials The Organization will adopt a policy to ensure tenants requesting maintenance of property via work orders is being maintained properly and efficiently in the work order system and we will review the accuracy / completeness of the documentation being processed in the work order system on a quarterly basis. S3800-050: Context The Organization is required to maintain a properly functioning work order system that demonstrates resolution of tenants requesting maintenance. S3800-080: Recommendation The Organization should adopt a policy to ensure tenants requesting maintenance of property via work orders is being maintained properly and efficiently in the work order system and management is reviewing the accuracy / completeness of the documentation being processed in the work order system on a quarterly basis. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date July 31, 2024 S3800-150: Response See Corrective Action Plan
Finding 2023-002
S3800-010: Finding Reference Number 2023-002 (Significant Deficiency) S3800-011: Program Information Federal Program: Supportive Housing for Persons with Disabilities – Section 811 Federal Agency: Department of Housing and Urban Development Assistance Listing #: 14.181 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Financial Statements and Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number 2022-002 S3800-020: Criteria Per HUD Handbook 4381.5, REV-2, CHG-2, Management Agents of insured and assisted multifamily housing projects are required by HUD administrative guidelines to have a HUD approved Project Owner's / Management Agent’s Certification for Multifamily Housing Projects for very low-income persons with disabilities (Form 9839-B). S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2023 federal award program, we noted that the Organization did not have a HUD approved Form 9839-B; the last effective date was August 31, 2014. S3800-032: Cause Form 9839-B expired in 2014 and the Organization failed to obtain an approved HUD Form 9839-B since then. However, as of March 22, 2023, the Organization submitted a request for approval of Form 9839-B to HUD, however HUD requested additional documentation from the Organization regarding the operation and management of the property before granting approval. S3800-033: Effect or Potential Effect Charges for management fees for the fiscal year were not authorized. S3800-035: Auditor Non-Compliance Code: J – Unauthorized management fee S3800-040: Questioned Costs $9,478 S3800-045: Reporting Views of Responsible Officials The Organization agreed with this finding. S3800-050: Context The Organization is required to have all of its necessary forms and licenses current and up to date. S3800-080: Recommendation The Organization should establish a process to ensure they have obtained all required HUD approved forms. Additionally, the Organization should ask HUD to retrospectively approve Form 9839-B effective September 1, 2014. As of March 22, 2023, the Organization submitted a request for approval of Form 9839-B to HUD, however HUD requested additional documentation from the Organization regarding the operation and management of the property before granting approval, in which we recommend the Organization submit. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date July 31, 2024 S3800-150: Response See Corrective Action Plan
Finding 2023-001
S3800-010: Finding Reference Number 2023-001 (Significant Deficiency) S3800-011: Program Information Federal Program: Supportive Housing for Persons with Disabilities – Section 811 Federal Agency: Department of Housing and Urban Development Assistance Listing #: 14.181 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 66 S3800-018: Sample Size Information 7 S3800-019: Identification of Repeat Finding and Finding Reference Number 2022-001 S3800-020: Criteria Per HUD Handbook 4381.5, REV-2, CHG-2, requires owners of multifamily housing to follow specific guidelines and determine requirements are being met for residents requesting maintenance of property via a work order system in compliance with management’s procedures. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2023 financial statements, we noted that HUD requirements related to housing quality standards were not properly followed. We tested a sample of seven work orders and noted that a proper and efficient work order system was not in place; as the Organization has tenants submit paper maintenance work order request forms, however the maintenance personnel does not on sign / initial each work order as completed, provide the date of their completion, and /or list the work performed to resolve the tenant request on the work order. Someone places a checkmark on the work order request form with no additional information. S3800-032: Cause The Organization did not follow HUD required procedures for housing quality standards. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to ensuring a properly functioning work order system is in place. S3800-035: Auditor Non-Compliance Code: S – Internal control deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials The Organization will adopt a policy to ensure tenants requesting maintenance of property via work orders is being maintained properly and efficiently in the work order system and we will review the accuracy / completeness of the documentation being processed in the work order system on a quarterly basis. S3800-050: Context The Organization is required to maintain a properly functioning work order system that demonstrates resolution of tenants requesting maintenance. S3800-080: Recommendation The Organization should adopt a policy to ensure tenants requesting maintenance of property via work orders is being maintained properly and efficiently in the work order system and management is reviewing the accuracy / completeness of the documentation being processed in the work order system on a quarterly basis. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date July 31, 2024 S3800-150: Response See Corrective Action Plan
Finding 2023-002
S3800-010: Finding Reference Number 2023-002 (Significant Deficiency) S3800-011: Program Information Federal Program: Supportive Housing for Persons with Disabilities – Section 811 Federal Agency: Department of Housing and Urban Development Assistance Listing #: 14.181 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Financial Statements and Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number 2022-002 S3800-020: Criteria Per HUD Handbook 4381.5, REV-2, CHG-2, Management Agents of insured and assisted multifamily housing projects are required by HUD administrative guidelines to have a HUD approved Project Owner's / Management Agent’s Certification for Multifamily Housing Projects for very low-income persons with disabilities (Form 9839-B). S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2023 federal award program, we noted that the Organization did not have a HUD approved Form 9839-B; the last effective date was August 31, 2014. S3800-032: Cause Form 9839-B expired in 2014 and the Organization failed to obtain an approved HUD Form 9839-B since then. However, as of March 22, 2023, the Organization submitted a request for approval of Form 9839-B to HUD, however HUD requested additional documentation from the Organization regarding the operation and management of the property before granting approval. S3800-033: Effect or Potential Effect Charges for management fees for the fiscal year were not authorized. S3800-035: Auditor Non-Compliance Code: J – Unauthorized management fee S3800-040: Questioned Costs $9,478 S3800-045: Reporting Views of Responsible Officials The Organization agreed with this finding. S3800-050: Context The Organization is required to have all of its necessary forms and licenses current and up to date. S3800-080: Recommendation The Organization should establish a process to ensure they have obtained all required HUD approved forms. Additionally, the Organization should ask HUD to retrospectively approve Form 9839-B effective September 1, 2014. As of March 22, 2023, the Organization submitted a request for approval of Form 9839-B to HUD, however HUD requested additional documentation from the Organization regarding the operation and management of the property before granting approval, in which we recommend the Organization submit. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date July 31, 2024 S3800-150: Response See Corrective Action Plan