FAC Explorer

Audit 31275

FY End
2022-09-30
Total Expended
$62.07M
Findings
14
Programs
5
Organization: Park City Communities, INC (CT)
Year: 2022 Accepted: 2023-06-29
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30953 2022-001 Material Weakness Yes E
30954 2022-002 Material Weakness Yes N
30955 2022-002 Material Weakness Yes N
30956 2022-002 Material Weakness Yes N
30957 2022-002 Material Weakness Yes N
30958 2022-002 Material Weakness Yes N
30959 2022-001 Material Weakness Yes E
607395 2022-001 Material Weakness Yes E
607396 2022-002 Material Weakness Yes N
607397 2022-002 Material Weakness Yes N
607398 2022-002 Material Weakness Yes N
607399 2022-002 Material Weakness Yes N
607400 2022-002 Material Weakness Yes N
607401 2022-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.872 Public Housing Capital Fund $7.36M - 0
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $932,888 - 0
14.850 Public and Indian Housing $516,307 Yes 1
14.871 Section 8 Housing Choice Vouchers $141,383 Yes 2
14.870 Resident Opportunity and Supportive Services - Service Coordinators $28,059 - 0

Contacts

Name Title Type
N3REFJLLS419 Alan Cashmore Auditee
2033378968 Melissa Ferrucci Auditor
No contacts on file

Notes to SEFA

Title: Note 3 - Indirect cost rate Accounting Policies: Note 1 - Basis of presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Park City Communities ("Park City") under programs of the federal government for the year ended September 30, 2022. 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 Park City, it is not intended to and does not present the financial position, changes in net position, or cash flows of Park City. De Minimis Rate Used: N Rate Explanation: 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. Park City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 4 - Public housing capital fund grants Accounting Policies: Note 1 - Basis of presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Park City Communities ("Park City") under programs of the federal government for the year ended September 30, 2022. 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 Park City, it is not intended to and does not present the financial position, changes in net position, or cash flows of Park City. De Minimis Rate Used: N Rate Explanation: 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. Below is a schedule summarizing the status of the capital fund grants of the entity: Grant # Grant Auth Prior Exp.2022 Current Year Exp. Cumulative Exp CT26P001501-17 $4,011,186 $3,896,406 $100,359 $3,996,765 CT26P001501-18 $6,160,427 $5,223,141 $236,435 $5,459,576 CT26P001501-19 $6,367,546 $4,209,939 $820,924 $5,030,863 CT26P001501-20 $6,847,449 $2,641,230 $1,183,095 $3,824,325 CT26P001501-21 $7,231,366 - $2,509,187 $2,509,187 CT26P001501-22 $8,331,371 - $2,512,264 $2,512,264 Total $38,949,345 $15,970,716 $7,362,264 $23,332,980
Title: Note 5 - Subrecipients Accounting Policies: Note 1 - Basis of presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Park City Communities ("Park City") under programs of the federal government for the year ended September 30, 2022. 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 Park City, it is not intended to and does not present the financial position, changes in net position, or cash flows of Park City. De Minimis Rate Used: N Rate Explanation: 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. There were no monies passed through to subrecipients.
Title: Note 6 - Reconciliation of grant revenue to the audited financial statement Accounting Policies: Note 1 - Basis of presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Park City Communities ("Park City") under programs of the federal government for the year ended September 30, 2022. 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 Park City, it is not intended to and does not present the financial position, changes in net position, or cash flows of Park City. De Minimis Rate Used: N Rate Explanation: 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. The amounts reported in the Schedule are reconciled with the amounts reported in Park City's financial statements as follows: Reconciliation of grant revenue to the audited financial statements Operating grant revenue $54,706,064 Capital grant revenue (soft costs) 4,290,357 Capital grant revenue 3,071,907 Total $62,068,328

Finding Details

Finding 2022-001
III - Findings and Questioned Costs - Major Federal Award Programs Audit 2022-001 - Eligibility: Section 8 Housing Choice Vouchers Program (CFDA #14.871) Criteria HUD regulations require the collection and retention of certain tenant information to document the eligibility determination for each recipient. Condition The results of our testing indicated that certain items were unable to be located in the file, as follows: ? In one instance, income verification support did not agree to HUD Form 50058. ? In one instance, social security verification was missing from the tenant file. ? In five instances, the rent adjustment forms were missing from the tenant file. ? In one instance, Park City could not provide a tenant file for examination. Questioned Costs Not determinable. Context We selected a sample of 60 files for review. Effect The tenant file documentation was incomplete. Cause The cause is unknown. Recommendation We recommend that Park City improve its internal processes to ensure tenant files contain the required documentation.
Finding 2022-002
2022-002 - Special Tests: Public and Indian Housing (FANL #14.850) and Section 8 Housing Voucher Cluster (FALN #14.871) Criteria In accordance with a Notice of Default dated August 19, 2021 from HUD, HUD has made ten findings that support the determination that (1) the Public Housing Program is in substantial default for breaching the terms of the Public Housing Recovery Agreement, and (2) the Housing Choice Voucher program is in default for breaching the terms of the Consolidated Annual Contributions Contract entered into with HUD. Condition Park City was not in compliance with these Agreements. Questioned Costs Not determinable. Context Park City was not in compliance with agreements with HUD. Effect The effects are not known at this time. Cause The cause is unknown. Recommendation We recommend that Park City remediate the findings noted to comply with the agreements as mandated. Park City's Response The Authority is responding to HUD's recommendations. At this time, the Authority has completed nine of the ten findings.
Finding 2022-002
2022-002 - Special Tests: Public and Indian Housing (FANL #14.850) and Section 8 Housing Voucher Cluster (FALN #14.871) Criteria In accordance with a Notice of Default dated August 19, 2021 from HUD, HUD has made ten findings that support the determination that (1) the Public Housing Program is in substantial default for breaching the terms of the Public Housing Recovery Agreement, and (2) the Housing Choice Voucher program is in default for breaching the terms of the Consolidated Annual Contributions Contract entered into with HUD. Condition Park City was not in compliance with these Agreements. Questioned Costs Not determinable. Context Park City was not in compliance with agreements with HUD. Effect The effects are not known at this time. Cause The cause is unknown. Recommendation We recommend that Park City remediate the findings noted to comply with the agreements as mandated. Park City's Response The Authority is responding to HUD's recommendations. At this time, the Authority has completed nine of the ten findings.
Finding 2022-002
2022-002 - Special Tests: Public and Indian Housing (FANL #14.850) and Section 8 Housing Voucher Cluster (FALN #14.871) Criteria In accordance with a Notice of Default dated August 19, 2021 from HUD, HUD has made ten findings that support the determination that (1) the Public Housing Program is in substantial default for breaching the terms of the Public Housing Recovery Agreement, and (2) the Housing Choice Voucher program is in default for breaching the terms of the Consolidated Annual Contributions Contract entered into with HUD. Condition Park City was not in compliance with these Agreements. Questioned Costs Not determinable. Context Park City was not in compliance with agreements with HUD. Effect The effects are not known at this time. Cause The cause is unknown. Recommendation We recommend that Park City remediate the findings noted to comply with the agreements as mandated. Park City's Response The Authority is responding to HUD's recommendations. At this time, the Authority has completed nine of the ten findings.
Finding 2022-002
2022-002 - Special Tests: Public and Indian Housing (FANL #14.850) and Section 8 Housing Voucher Cluster (FALN #14.871) Criteria In accordance with a Notice of Default dated August 19, 2021 from HUD, HUD has made ten findings that support the determination that (1) the Public Housing Program is in substantial default for breaching the terms of the Public Housing Recovery Agreement, and (2) the Housing Choice Voucher program is in default for breaching the terms of the Consolidated Annual Contributions Contract entered into with HUD. Condition Park City was not in compliance with these Agreements. Questioned Costs Not determinable. Context Park City was not in compliance with agreements with HUD. Effect The effects are not known at this time. Cause The cause is unknown. Recommendation We recommend that Park City remediate the findings noted to comply with the agreements as mandated. Park City's Response The Authority is responding to HUD's recommendations. At this time, the Authority has completed nine of the ten findings.
Finding 2022-002
2022-002 - Special Tests: Public and Indian Housing (FANL #14.850) and Section 8 Housing Voucher Cluster (FALN #14.871) Criteria In accordance with a Notice of Default dated August 19, 2021 from HUD, HUD has made ten findings that support the determination that (1) the Public Housing Program is in substantial default for breaching the terms of the Public Housing Recovery Agreement, and (2) the Housing Choice Voucher program is in default for breaching the terms of the Consolidated Annual Contributions Contract entered into with HUD. Condition Park City was not in compliance with these Agreements. Questioned Costs Not determinable. Context Park City was not in compliance with agreements with HUD. Effect The effects are not known at this time. Cause The cause is unknown. Recommendation We recommend that Park City remediate the findings noted to comply with the agreements as mandated. Park City's Response The Authority is responding to HUD's recommendations. At this time, the Authority has completed nine of the ten findings.
Finding 2022-001
III - Findings and Questioned Costs - Major Federal Award Programs Audit 2022-001 - Eligibility: Section 8 Housing Choice Vouchers Program (CFDA #14.871) Criteria HUD regulations require the collection and retention of certain tenant information to document the eligibility determination for each recipient. Condition The results of our testing indicated that certain items were unable to be located in the file, as follows: ? In one instance, income verification support did not agree to HUD Form 50058. ? In one instance, social security verification was missing from the tenant file. ? In five instances, the rent adjustment forms were missing from the tenant file. ? In one instance, Park City could not provide a tenant file for examination. Questioned Costs Not determinable. Context We selected a sample of 60 files for review. Effect The tenant file documentation was incomplete. Cause The cause is unknown. Recommendation We recommend that Park City improve its internal processes to ensure tenant files contain the required documentation.
Finding 2022-001
III - Findings and Questioned Costs - Major Federal Award Programs Audit 2022-001 - Eligibility: Section 8 Housing Choice Vouchers Program (CFDA #14.871) Criteria HUD regulations require the collection and retention of certain tenant information to document the eligibility determination for each recipient. Condition The results of our testing indicated that certain items were unable to be located in the file, as follows: ? In one instance, income verification support did not agree to HUD Form 50058. ? In one instance, social security verification was missing from the tenant file. ? In five instances, the rent adjustment forms were missing from the tenant file. ? In one instance, Park City could not provide a tenant file for examination. Questioned Costs Not determinable. Context We selected a sample of 60 files for review. Effect The tenant file documentation was incomplete. Cause The cause is unknown. Recommendation We recommend that Park City improve its internal processes to ensure tenant files contain the required documentation.
Finding 2022-002
2022-002 - Special Tests: Public and Indian Housing (FANL #14.850) and Section 8 Housing Voucher Cluster (FALN #14.871) Criteria In accordance with a Notice of Default dated August 19, 2021 from HUD, HUD has made ten findings that support the determination that (1) the Public Housing Program is in substantial default for breaching the terms of the Public Housing Recovery Agreement, and (2) the Housing Choice Voucher program is in default for breaching the terms of the Consolidated Annual Contributions Contract entered into with HUD. Condition Park City was not in compliance with these Agreements. Questioned Costs Not determinable. Context Park City was not in compliance with agreements with HUD. Effect The effects are not known at this time. Cause The cause is unknown. Recommendation We recommend that Park City remediate the findings noted to comply with the agreements as mandated. Park City's Response The Authority is responding to HUD's recommendations. At this time, the Authority has completed nine of the ten findings.
Finding 2022-002
2022-002 - Special Tests: Public and Indian Housing (FANL #14.850) and Section 8 Housing Voucher Cluster (FALN #14.871) Criteria In accordance with a Notice of Default dated August 19, 2021 from HUD, HUD has made ten findings that support the determination that (1) the Public Housing Program is in substantial default for breaching the terms of the Public Housing Recovery Agreement, and (2) the Housing Choice Voucher program is in default for breaching the terms of the Consolidated Annual Contributions Contract entered into with HUD. Condition Park City was not in compliance with these Agreements. Questioned Costs Not determinable. Context Park City was not in compliance with agreements with HUD. Effect The effects are not known at this time. Cause The cause is unknown. Recommendation We recommend that Park City remediate the findings noted to comply with the agreements as mandated. Park City's Response The Authority is responding to HUD's recommendations. At this time, the Authority has completed nine of the ten findings.
Finding 2022-002
2022-002 - Special Tests: Public and Indian Housing (FANL #14.850) and Section 8 Housing Voucher Cluster (FALN #14.871) Criteria In accordance with a Notice of Default dated August 19, 2021 from HUD, HUD has made ten findings that support the determination that (1) the Public Housing Program is in substantial default for breaching the terms of the Public Housing Recovery Agreement, and (2) the Housing Choice Voucher program is in default for breaching the terms of the Consolidated Annual Contributions Contract entered into with HUD. Condition Park City was not in compliance with these Agreements. Questioned Costs Not determinable. Context Park City was not in compliance with agreements with HUD. Effect The effects are not known at this time. Cause The cause is unknown. Recommendation We recommend that Park City remediate the findings noted to comply with the agreements as mandated. Park City's Response The Authority is responding to HUD's recommendations. At this time, the Authority has completed nine of the ten findings.
Finding 2022-002
2022-002 - Special Tests: Public and Indian Housing (FANL #14.850) and Section 8 Housing Voucher Cluster (FALN #14.871) Criteria In accordance with a Notice of Default dated August 19, 2021 from HUD, HUD has made ten findings that support the determination that (1) the Public Housing Program is in substantial default for breaching the terms of the Public Housing Recovery Agreement, and (2) the Housing Choice Voucher program is in default for breaching the terms of the Consolidated Annual Contributions Contract entered into with HUD. Condition Park City was not in compliance with these Agreements. Questioned Costs Not determinable. Context Park City was not in compliance with agreements with HUD. Effect The effects are not known at this time. Cause The cause is unknown. Recommendation We recommend that Park City remediate the findings noted to comply with the agreements as mandated. Park City's Response The Authority is responding to HUD's recommendations. At this time, the Authority has completed nine of the ten findings.
Finding 2022-002
2022-002 - Special Tests: Public and Indian Housing (FANL #14.850) and Section 8 Housing Voucher Cluster (FALN #14.871) Criteria In accordance with a Notice of Default dated August 19, 2021 from HUD, HUD has made ten findings that support the determination that (1) the Public Housing Program is in substantial default for breaching the terms of the Public Housing Recovery Agreement, and (2) the Housing Choice Voucher program is in default for breaching the terms of the Consolidated Annual Contributions Contract entered into with HUD. Condition Park City was not in compliance with these Agreements. Questioned Costs Not determinable. Context Park City was not in compliance with agreements with HUD. Effect The effects are not known at this time. Cause The cause is unknown. Recommendation We recommend that Park City remediate the findings noted to comply with the agreements as mandated. Park City's Response The Authority is responding to HUD's recommendations. At this time, the Authority has completed nine of the ten findings.
Finding 2022-001
III - Findings and Questioned Costs - Major Federal Award Programs Audit 2022-001 - Eligibility: Section 8 Housing Choice Vouchers Program (CFDA #14.871) Criteria HUD regulations require the collection and retention of certain tenant information to document the eligibility determination for each recipient. Condition The results of our testing indicated that certain items were unable to be located in the file, as follows: ? In one instance, income verification support did not agree to HUD Form 50058. ? In one instance, social security verification was missing from the tenant file. ? In five instances, the rent adjustment forms were missing from the tenant file. ? In one instance, Park City could not provide a tenant file for examination. Questioned Costs Not determinable. Context We selected a sample of 60 files for review. Effect The tenant file documentation was incomplete. Cause The cause is unknown. Recommendation We recommend that Park City improve its internal processes to ensure tenant files contain the required documentation.