Audit 310002

FY End
2023-03-31
Total Expended
$1.60M
Findings
4
Programs
3
Year: 2023 Accepted: 2024-06-26
Auditor: Eide Bailly LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
402818 2023-002 Significant Deficiency - N
402819 2023-002 Significant Deficiency - N
979260 2023-002 Significant Deficiency - N
979261 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.195 Section 8 Housing Assistance Payments Program $1.15M Yes 1
14.157 Supportive Housing for the Elderly $398,378 - 1
14.191 Multifamily Housing Service Coordinators $50,634 - 0

Contacts

Name Title Type
QYT1VZVG2XN3 Cesar Zaldivar-Motts Auditee
3235825957 Andrew Park Auditor
No contacts on file

Notes to SEFA

Title: Note 1 ‐ Basis of Presentation Accounting Policies: The financial statements have been prepared in accordance with the accounting and reporting standards prescribed by HUD. These standards differ in some respects from accounting principles generally accepted in the United States of America, and the financial statements reflect the following additional HUD accounting and reporting principles, including costs are to be exclusive of kickbacks, rebates, or trade discounts, and financing charges are limited to the lesser of amounts actually paid, or amounts approved by HUD, on the Mortgagee’s Certificates. For this project, the financing charges are the amounts actually paid. De Minimis Rate Used: N Rate Explanation: No indirect costs were charged The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the Oldtimers Housing Development Corporation of Chino, HUD Project No. 122‐EH122‐WAH‐L8 (the Corporation), 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. The Corporation has not elected to use the ten percent de minimis cost rate as covered in Section 200.414 Indirect (F&A) costs of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Title: Note 2 ‐ Loan and Loan Guarantee Programs Accounting Policies: The financial statements have been prepared in accordance with the accounting and reporting standards prescribed by HUD. These standards differ in some respects from accounting principles generally accepted in the United States of America, and the financial statements reflect the following additional HUD accounting and reporting principles, including costs are to be exclusive of kickbacks, rebates, or trade discounts, and financing charges are limited to the lesser of amounts actually paid, or amounts approved by HUD, on the Mortgagee’s Certificates. For this project, the financing charges are the amounts actually paid. De Minimis Rate Used: N Rate Explanation: No indirect costs were charged The Supportive Housing for the Elderly – Section 202 program represents an outstanding loan with the United States Department of Housing and Urban Development with continuing compliance requirements. The balance on the outstanding loan at March 31, 2023 was $61,241.

Finding Details

50000 – Federal Compliance Federal Agency: U.S. Department of Housing and Urban Development Pass‐through Entity: N/A (Direct Award) Federal Program: Supportive Housing for the Elderly ‐ Section 202 & Section 8 Housing Assistance Payments Program ALN: 14.157 & 14.195 Compliance Requirement: Special Tests and Provisions Type of Finding: Significant Deficiency and Non‐Compliance Criteria or Specific Requirements In accordance with 24 CFR Section 891.405(b) and 24 CFR Section 880.602, the management is responsible for making monthly required deposits into the replacement reserve account in an amount determined by HUD. Condition We noted one instance during our testing where management did not make the required monthly deposit into the replacement reserve account on a timely manner. Monthly deposit for November 2022 through January 2023 were made in February 2023. Questioned Costs There were no questioned costs associated with the condition identified Context The condition was identified as a result of reviewing the Corporation’s financial reports, monthly bank account statement, and supporting documents supporting the amounts reported. Effect The Corporation has not complied with requirement identified in 24 CFR Section 891.405(b) and 24 CFR Section 880.602. Cause Management’s policies were not followed with respect to making the HUD required monthly deposit into the replacement reserve account on time. Repeat Finding No. Recommendation Management should implement control and procedures to ensure the required monthly deposits are made in a timely manner. Corrective Action Plan and Views of Responsible Officials The Corporation will ensure that all monthly deposits to the replacement reserve are made in a timely manner.
50000 – Federal Compliance Federal Agency: U.S. Department of Housing and Urban Development Pass‐through Entity: N/A (Direct Award) Federal Program: Supportive Housing for the Elderly ‐ Section 202 & Section 8 Housing Assistance Payments Program ALN: 14.157 & 14.195 Compliance Requirement: Special Tests and Provisions Type of Finding: Significant Deficiency and Non‐Compliance Criteria or Specific Requirements In accordance with 24 CFR Section 891.405(b) and 24 CFR Section 880.602, the management is responsible for making monthly required deposits into the replacement reserve account in an amount determined by HUD. Condition We noted one instance during our testing where management did not make the required monthly deposit into the replacement reserve account on a timely manner. Monthly deposit for November 2022 through January 2023 were made in February 2023. Questioned Costs There were no questioned costs associated with the condition identified Context The condition was identified as a result of reviewing the Corporation’s financial reports, monthly bank account statement, and supporting documents supporting the amounts reported. Effect The Corporation has not complied with requirement identified in 24 CFR Section 891.405(b) and 24 CFR Section 880.602. Cause Management’s policies were not followed with respect to making the HUD required monthly deposit into the replacement reserve account on time. Repeat Finding No. Recommendation Management should implement control and procedures to ensure the required monthly deposits are made in a timely manner. Corrective Action Plan and Views of Responsible Officials The Corporation will ensure that all monthly deposits to the replacement reserve are made in a timely manner.
50000 – Federal Compliance Federal Agency: U.S. Department of Housing and Urban Development Pass‐through Entity: N/A (Direct Award) Federal Program: Supportive Housing for the Elderly ‐ Section 202 & Section 8 Housing Assistance Payments Program ALN: 14.157 & 14.195 Compliance Requirement: Special Tests and Provisions Type of Finding: Significant Deficiency and Non‐Compliance Criteria or Specific Requirements In accordance with 24 CFR Section 891.405(b) and 24 CFR Section 880.602, the management is responsible for making monthly required deposits into the replacement reserve account in an amount determined by HUD. Condition We noted one instance during our testing where management did not make the required monthly deposit into the replacement reserve account on a timely manner. Monthly deposit for November 2022 through January 2023 were made in February 2023. Questioned Costs There were no questioned costs associated with the condition identified Context The condition was identified as a result of reviewing the Corporation’s financial reports, monthly bank account statement, and supporting documents supporting the amounts reported. Effect The Corporation has not complied with requirement identified in 24 CFR Section 891.405(b) and 24 CFR Section 880.602. Cause Management’s policies were not followed with respect to making the HUD required monthly deposit into the replacement reserve account on time. Repeat Finding No. Recommendation Management should implement control and procedures to ensure the required monthly deposits are made in a timely manner. Corrective Action Plan and Views of Responsible Officials The Corporation will ensure that all monthly deposits to the replacement reserve are made in a timely manner.
50000 – Federal Compliance Federal Agency: U.S. Department of Housing and Urban Development Pass‐through Entity: N/A (Direct Award) Federal Program: Supportive Housing for the Elderly ‐ Section 202 & Section 8 Housing Assistance Payments Program ALN: 14.157 & 14.195 Compliance Requirement: Special Tests and Provisions Type of Finding: Significant Deficiency and Non‐Compliance Criteria or Specific Requirements In accordance with 24 CFR Section 891.405(b) and 24 CFR Section 880.602, the management is responsible for making monthly required deposits into the replacement reserve account in an amount determined by HUD. Condition We noted one instance during our testing where management did not make the required monthly deposit into the replacement reserve account on a timely manner. Monthly deposit for November 2022 through January 2023 were made in February 2023. Questioned Costs There were no questioned costs associated with the condition identified Context The condition was identified as a result of reviewing the Corporation’s financial reports, monthly bank account statement, and supporting documents supporting the amounts reported. Effect The Corporation has not complied with requirement identified in 24 CFR Section 891.405(b) and 24 CFR Section 880.602. Cause Management’s policies were not followed with respect to making the HUD required monthly deposit into the replacement reserve account on time. Repeat Finding No. Recommendation Management should implement control and procedures to ensure the required monthly deposits are made in a timely manner. Corrective Action Plan and Views of Responsible Officials The Corporation will ensure that all monthly deposits to the replacement reserve are made in a timely manner.