Audit 311152

FY End
2023-09-30
Total Expended
$814,767
Findings
4
Programs
3
Year: 2023 Accepted: 2024-06-30
Auditor: M Group LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
404763 2023-001 Material Weakness Yes C
404764 2023-001 Material Weakness Yes C
981205 2023-001 Material Weakness Yes C
981206 2023-001 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
14.195 Section 8 Housing Assistance Payments Program $426,969 Yes 1
14.157 Supportive Housing for the Elderly $322,898 Yes 1
14.191 Multifamily Housing Service Coordinators $64,900 - 0

Contacts

Name Title Type
NYFFARKWH3G1 Connie Quillen Auditee
5125813611 Michael Martin Auditor
No contacts on file

Notes to SEFA

Title: Note 4: Federal Loan Balance Accounting Policies: Note 1: Basis of Presentation: This schedule of expenditures of federal awards includes the federal award activity of St. George’s Senior Housing, Inc. 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 Audits for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of St. George’s Senior Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of St. George’s Senior Housing, Inc. Note 2: Summary of Significant Accounting Policies: Expenditures reporting 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: Note 3: Indirect Cost Rate: St. George’s Senior Housing, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. St. George’s Senior Housing, Inc’s federal loan balance outstanding as of September 30, 2023, was $144,775 and is included in the federal expenditures presented in the schedule.

Finding Details

Finding #2023-001: Section 202 Supportive Housing for the Elderly, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Material Weakness Condition: The Company did not make the correct monthly deposit amount to the replacement reserve for 10 months and the Company did not obtain HUD’s approval for a withdrawal from the replacement reserve account. Criteria: The HUD regulatory agreement requires monthly deposits into the replacement reserve account and requires HUD’s approval for any withdrawals from the replacement reserve. Questioned cost: $2,941 Effect: Replacement reserve account is underfunded and the Company is in violation of its Regulatory Agreement. Cause: Oversight Repeat Finding: Yes Recommendation: 2023-001a: The Company should closely monitor the replacement reserve account to ensure compliance with the Regulatory Agreement. 2023-001b: We recommend the Company deposit $2,941 into the replacement reserve account. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: On December 19, 2023, the Company deposited $2,941 into the replacement reserve account. Finding #2023-001 cleared.
Finding #2023-001: Section 202 Supportive Housing for the Elderly, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Material Weakness Condition: The Company did not make the correct monthly deposit amount to the replacement reserve for 10 months and the Company did not obtain HUD’s approval for a withdrawal from the replacement reserve account. Criteria: The HUD regulatory agreement requires monthly deposits into the replacement reserve account and requires HUD’s approval for any withdrawals from the replacement reserve. Questioned cost: $2,941 Effect: Replacement reserve account is underfunded and the Company is in violation of its Regulatory Agreement. Cause: Oversight Repeat Finding: Yes Recommendation: 2023-001a: The Company should closely monitor the replacement reserve account to ensure compliance with the Regulatory Agreement. 2023-001b: We recommend the Company deposit $2,941 into the replacement reserve account. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: On December 19, 2023, the Company deposited $2,941 into the replacement reserve account. Finding #2023-001 cleared.
Finding #2023-001: Section 202 Supportive Housing for the Elderly, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Material Weakness Condition: The Company did not make the correct monthly deposit amount to the replacement reserve for 10 months and the Company did not obtain HUD’s approval for a withdrawal from the replacement reserve account. Criteria: The HUD regulatory agreement requires monthly deposits into the replacement reserve account and requires HUD’s approval for any withdrawals from the replacement reserve. Questioned cost: $2,941 Effect: Replacement reserve account is underfunded and the Company is in violation of its Regulatory Agreement. Cause: Oversight Repeat Finding: Yes Recommendation: 2023-001a: The Company should closely monitor the replacement reserve account to ensure compliance with the Regulatory Agreement. 2023-001b: We recommend the Company deposit $2,941 into the replacement reserve account. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: On December 19, 2023, the Company deposited $2,941 into the replacement reserve account. Finding #2023-001 cleared.
Finding #2023-001: Section 202 Supportive Housing for the Elderly, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Material Weakness Condition: The Company did not make the correct monthly deposit amount to the replacement reserve for 10 months and the Company did not obtain HUD’s approval for a withdrawal from the replacement reserve account. Criteria: The HUD regulatory agreement requires monthly deposits into the replacement reserve account and requires HUD’s approval for any withdrawals from the replacement reserve. Questioned cost: $2,941 Effect: Replacement reserve account is underfunded and the Company is in violation of its Regulatory Agreement. Cause: Oversight Repeat Finding: Yes Recommendation: 2023-001a: The Company should closely monitor the replacement reserve account to ensure compliance with the Regulatory Agreement. 2023-001b: We recommend the Company deposit $2,941 into the replacement reserve account. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: On December 19, 2023, the Company deposited $2,941 into the replacement reserve account. Finding #2023-001 cleared.