FAC Explorer

Audit 310448

FY End
2023-09-30
Total Expended
$3.89M
Findings
4
Programs
1
Organization: Evangeline Booth Residence, Inc., A Florida Corporation (FL)
Year: 2023 Accepted: 2024-06-27
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
403273 2023-002 Material Weakness Yes E
403274 2023-002 Material Weakness Yes E
979715 2023-002 Material Weakness Yes E
979716 2023-002 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $3.59M Yes 1

Contacts

Name Title Type
KCLRUD1D6XD7 Major Roland Cox Auditee
4047281322 Dan Worrall Auditor
No contacts on file

Notes to SEFA

Title: Note A Accounting Policies: Note B - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Evangeline Booth Residence, Inc., a Florida Corporation has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal award activity of Evangeline Booth Residence, Inc., a Florida Corporation, HUD Project No.: 063-EE011, under programs of the federal government for the year ended September 30, 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 Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of Evangeline Booth Residence, Inc., a Florida Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Evangeline Booth Residence, Inc., a Florida Corporation. For the year ended September 30, 2023, no awards were passed through to subrecipients.
Title: Note C Accounting Policies: Note B - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Evangeline Booth Residence, Inc., a Florida Corporation has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Evangeline Booth Residence, Inc., a Florida Corporation has received a U.S. Department of Housing and Urban Development capital grant under Section 202 of the National Housing Act. The capital grant balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Evangeline Booth Residence, Inc., a Florida Corporation received no additional grants during the year. The balance of the capital grant outstanding at September 30, 2023 consists of: See the Notes to the SEFA for chart/table

Finding Details

Finding 2023-002
Department of Housing and Urban Development Finding 2023-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition In connection with our lease file review we noted the following deficiencies: 1 out of 1 move-in tenants and 2 out of 6 existing tenants tested did not have documentation in their lease file that their income was verified using HUD's Enterprise Income Verification (EIV). Criteria Management is required to use EIV as a third party source to verify tenant employment and income information during mandatory recertifications of family composition and income, in accordance with 24 CFR 5.233 and administrative guidance issued by HUD. Effect The procedures for determining eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Cause Access to the EIV system [the system used to access Social Security information and Health and Human Services information] was not available due to the incorrect tax ID being identified to The Salvation Army personnel who had transitioned from another The Salvation Army HUD Project location. It took considerable efforts to get this corrected with HUD. The appropriate access to the system has now been given to the new personnel of the Ocala HUD Project. This lack of access impacted FY 2022 and the early part of FY 2023. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration (REAC); E – Eligibility (UG) Finding Resolution Status: Resolved. Access to the Enterprise Income Verification (EIV) system [the system used to access Social Security information and Health and Human Services information] was not available due to the incorrect tax ID being identified to The Salvation Army personnel who had transitioned from another The Salvation Army HUD Project location. It took considerable efforts to get this corrected with HUD. The appropriate access to the system has now been given to the new personnel of this Ocala HUD Project. This lack of access impacted the early part of FY 2023. Reporting Views of Responsible Officials See comments under Finding Resolution Status.
Finding 2023-002
Department of Housing and Urban Development Finding 2023-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition In connection with our lease file review we noted the following deficiencies: 1 out of 1 move-in tenants and 2 out of 6 existing tenants tested did not have documentation in their lease file that their income was verified using HUD's Enterprise Income Verification (EIV). Criteria Management is required to use EIV as a third party source to verify tenant employment and income information during mandatory recertifications of family composition and income, in accordance with 24 CFR 5.233 and administrative guidance issued by HUD. Effect The procedures for determining eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Cause Access to the EIV system [the system used to access Social Security information and Health and Human Services information] was not available due to the incorrect tax ID being identified to The Salvation Army personnel who had transitioned from another The Salvation Army HUD Project location. It took considerable efforts to get this corrected with HUD. The appropriate access to the system has now been given to the new personnel of the Ocala HUD Project. This lack of access impacted FY 2022 and the early part of FY 2023. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration (REAC); E – Eligibility (UG) Finding Resolution Status: Resolved. Access to the Enterprise Income Verification (EIV) system [the system used to access Social Security information and Health and Human Services information] was not available due to the incorrect tax ID being identified to The Salvation Army personnel who had transitioned from another The Salvation Army HUD Project location. It took considerable efforts to get this corrected with HUD. The appropriate access to the system has now been given to the new personnel of this Ocala HUD Project. This lack of access impacted the early part of FY 2023. Reporting Views of Responsible Officials See comments under Finding Resolution Status.
Finding 2023-002
Department of Housing and Urban Development Finding 2023-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition In connection with our lease file review we noted the following deficiencies: 1 out of 1 move-in tenants and 2 out of 6 existing tenants tested did not have documentation in their lease file that their income was verified using HUD's Enterprise Income Verification (EIV). Criteria Management is required to use EIV as a third party source to verify tenant employment and income information during mandatory recertifications of family composition and income, in accordance with 24 CFR 5.233 and administrative guidance issued by HUD. Effect The procedures for determining eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Cause Access to the EIV system [the system used to access Social Security information and Health and Human Services information] was not available due to the incorrect tax ID being identified to The Salvation Army personnel who had transitioned from another The Salvation Army HUD Project location. It took considerable efforts to get this corrected with HUD. The appropriate access to the system has now been given to the new personnel of the Ocala HUD Project. This lack of access impacted FY 2022 and the early part of FY 2023. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration (REAC); E – Eligibility (UG) Finding Resolution Status: Resolved. Access to the Enterprise Income Verification (EIV) system [the system used to access Social Security information and Health and Human Services information] was not available due to the incorrect tax ID being identified to The Salvation Army personnel who had transitioned from another The Salvation Army HUD Project location. It took considerable efforts to get this corrected with HUD. The appropriate access to the system has now been given to the new personnel of this Ocala HUD Project. This lack of access impacted the early part of FY 2023. Reporting Views of Responsible Officials See comments under Finding Resolution Status.
Finding 2023-002
Department of Housing and Urban Development Finding 2023-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition In connection with our lease file review we noted the following deficiencies: 1 out of 1 move-in tenants and 2 out of 6 existing tenants tested did not have documentation in their lease file that their income was verified using HUD's Enterprise Income Verification (EIV). Criteria Management is required to use EIV as a third party source to verify tenant employment and income information during mandatory recertifications of family composition and income, in accordance with 24 CFR 5.233 and administrative guidance issued by HUD. Effect The procedures for determining eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Cause Access to the EIV system [the system used to access Social Security information and Health and Human Services information] was not available due to the incorrect tax ID being identified to The Salvation Army personnel who had transitioned from another The Salvation Army HUD Project location. It took considerable efforts to get this corrected with HUD. The appropriate access to the system has now been given to the new personnel of the Ocala HUD Project. This lack of access impacted FY 2022 and the early part of FY 2023. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration (REAC); E – Eligibility (UG) Finding Resolution Status: Resolved. Access to the Enterprise Income Verification (EIV) system [the system used to access Social Security information and Health and Human Services information] was not available due to the incorrect tax ID being identified to The Salvation Army personnel who had transitioned from another The Salvation Army HUD Project location. It took considerable efforts to get this corrected with HUD. The appropriate access to the system has now been given to the new personnel of this Ocala HUD Project. This lack of access impacted the early part of FY 2023. Reporting Views of Responsible Officials See comments under Finding Resolution Status.