FAC Explorer

Audit 31651

FY End
2022-09-30
Total Expended
$2.11M
Findings
8
Programs
1
Organization: Kearsarge Elderly Housing, Inc. (NH)
Year: 2022 Accepted: 2023-01-10
Auditor: Leone McDonnell & Roberts P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33764 2022-001 - - E
33765 2022-002 Significant Deficiency - B
33766 2022-001 - - E
33767 2022-002 Significant Deficiency - B
610206 2022-001 - - E
610207 2022-002 Significant Deficiency - B
610208 2022-001 - - E
610209 2022-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.86M Yes 2

Contacts

Name Title Type
CRG6EV73J4D3 Jill Lesmerises Auditee
6032253295 Shauna Brown Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards includes the federal award activityof Kearsarge Elderly Housing, Inc., HUD Project No. 024-EH203, and is presented on the accrualbasis of accounting. The information in this schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Because the Schedule presents only a selected portion of the operations of Kearsarge ElderlyHousing, Inc., it is not intended to and does not present the financial position, changes in netassets, or cash flows of Kearsarge Elderly Housing, Inc.NOTE B: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures 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.Kearsarge Elderly Housing, Inc. has elected not to use the 10 percent de minimis indirect cost rateas allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 1858100.

Finding Details

Finding 2022-001
Department of Housing and Urban Development - Section 202 Supportive Housing for the Elderly 14.157 2022-001 Finding resolution status: Unresolved Information on universe: Auditor tests tenant files based on HUD sampling guidelines of less than 50 units. 5 files were selected for testing. Sample size: 5 files Identification of repeat finding: Not a repeat finding Condition: Tenant rent was not accurately calculated. Criteria: HUD requires annual re-certification and rent calculation. Effect: Tenant rent and tenant assistance were not correct for one tenant. Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted one file in which the income was not correctly calculated. Cause: Error by the project manager. Recommendation: A procedure be implemented to verify the treatment of unusual circumstances with the housing director. Reporting views of responsible officials: Management agrees and will implement a procedure. See Corrective Action Plan.
Finding 2022-002
Department of Housing and Urban Development - Section 202 Supportive Housing for the Elderly 14.157 2022-002 SIGNIFICANT DEFICIENCY Finding resolution status: In-Process Information on universe: Substantive testing Sample size: Expenses selected for substantive testing based on analytics Identification of repeat finding: Repeat finding Condition: Although improvements were made in the documentation and allocation of expenses not all of the corrective action plan from finding 2021-003 has been implemented at year end. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Controls around allocations could be stronger to help prevent misstatements. Context: Auditor selected accounts for testing due to the balances appearing unreasonable in comparison to the budget as well as prior year findings. It was noted that improvements were made after the prior audit was issued. Cause: Lack of policy surrounding time reporting. Recommendation: To document job duties for each position and implement a policy to ensure all time sheets detail out the duties performed. Reporting views of responsible officials: See Corrective Action Plan
Finding 2022-001
Department of Housing and Urban Development - Section 202 Supportive Housing for the Elderly 14.157 2022-001 Finding resolution status: Unresolved Information on universe: Auditor tests tenant files based on HUD sampling guidelines of less than 50 units. 5 files were selected for testing. Sample size: 5 files Identification of repeat finding: Not a repeat finding Condition: Tenant rent was not accurately calculated. Criteria: HUD requires annual re-certification and rent calculation. Effect: Tenant rent and tenant assistance were not correct for one tenant. Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted one file in which the income was not correctly calculated. Cause: Error by the project manager. Recommendation: A procedure be implemented to verify the treatment of unusual circumstances with the housing director. Reporting views of responsible officials: Management agrees and will implement a procedure. See Corrective Action Plan.
Finding 2022-002
Department of Housing and Urban Development - Section 202 Supportive Housing for the Elderly 14.157 2022-002 SIGNIFICANT DEFICIENCY Finding resolution status: In-Process Information on universe: Substantive testing Sample size: Expenses selected for substantive testing based on analytics Identification of repeat finding: Repeat finding Condition: Although improvements were made in the documentation and allocation of expenses not all of the corrective action plan from finding 2021-003 has been implemented at year end. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Controls around allocations could be stronger to help prevent misstatements. Context: Auditor selected accounts for testing due to the balances appearing unreasonable in comparison to the budget as well as prior year findings. It was noted that improvements were made after the prior audit was issued. Cause: Lack of policy surrounding time reporting. Recommendation: To document job duties for each position and implement a policy to ensure all time sheets detail out the duties performed. Reporting views of responsible officials: See Corrective Action Plan
Finding 2022-001
Department of Housing and Urban Development - Section 202 Supportive Housing for the Elderly 14.157 2022-001 Finding resolution status: Unresolved Information on universe: Auditor tests tenant files based on HUD sampling guidelines of less than 50 units. 5 files were selected for testing. Sample size: 5 files Identification of repeat finding: Not a repeat finding Condition: Tenant rent was not accurately calculated. Criteria: HUD requires annual re-certification and rent calculation. Effect: Tenant rent and tenant assistance were not correct for one tenant. Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted one file in which the income was not correctly calculated. Cause: Error by the project manager. Recommendation: A procedure be implemented to verify the treatment of unusual circumstances with the housing director. Reporting views of responsible officials: Management agrees and will implement a procedure. See Corrective Action Plan.
Finding 2022-002
Department of Housing and Urban Development - Section 202 Supportive Housing for the Elderly 14.157 2022-002 SIGNIFICANT DEFICIENCY Finding resolution status: In-Process Information on universe: Substantive testing Sample size: Expenses selected for substantive testing based on analytics Identification of repeat finding: Repeat finding Condition: Although improvements were made in the documentation and allocation of expenses not all of the corrective action plan from finding 2021-003 has been implemented at year end. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Controls around allocations could be stronger to help prevent misstatements. Context: Auditor selected accounts for testing due to the balances appearing unreasonable in comparison to the budget as well as prior year findings. It was noted that improvements were made after the prior audit was issued. Cause: Lack of policy surrounding time reporting. Recommendation: To document job duties for each position and implement a policy to ensure all time sheets detail out the duties performed. Reporting views of responsible officials: See Corrective Action Plan
Finding 2022-001
Department of Housing and Urban Development - Section 202 Supportive Housing for the Elderly 14.157 2022-001 Finding resolution status: Unresolved Information on universe: Auditor tests tenant files based on HUD sampling guidelines of less than 50 units. 5 files were selected for testing. Sample size: 5 files Identification of repeat finding: Not a repeat finding Condition: Tenant rent was not accurately calculated. Criteria: HUD requires annual re-certification and rent calculation. Effect: Tenant rent and tenant assistance were not correct for one tenant. Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted one file in which the income was not correctly calculated. Cause: Error by the project manager. Recommendation: A procedure be implemented to verify the treatment of unusual circumstances with the housing director. Reporting views of responsible officials: Management agrees and will implement a procedure. See Corrective Action Plan.
Finding 2022-002
Department of Housing and Urban Development - Section 202 Supportive Housing for the Elderly 14.157 2022-002 SIGNIFICANT DEFICIENCY Finding resolution status: In-Process Information on universe: Substantive testing Sample size: Expenses selected for substantive testing based on analytics Identification of repeat finding: Repeat finding Condition: Although improvements were made in the documentation and allocation of expenses not all of the corrective action plan from finding 2021-003 has been implemented at year end. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Controls around allocations could be stronger to help prevent misstatements. Context: Auditor selected accounts for testing due to the balances appearing unreasonable in comparison to the budget as well as prior year findings. It was noted that improvements were made after the prior audit was issued. Cause: Lack of policy surrounding time reporting. Recommendation: To document job duties for each position and implement a policy to ensure all time sheets detail out the duties performed. Reporting views of responsible officials: See Corrective Action Plan