Audit 317461

FY End
2023-12-31
Total Expended
$3.16M
Findings
4
Programs
3
Year: 2023 Accepted: 2024-08-19

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
481436 2023-001 - - E
481437 2023-002 - - N
1057878 2023-001 - - E
1057879 2023-002 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $2.84M Yes 2
14.157 Supportive Housing for the Elderly - Prac $289,591 Yes 0
14.157 Supportive Housing for the Elderly - Covid-19 Prac $26,320 Yes 0

Contacts

Name Title Type
VNJCUKZL1WH9 Irene Phillips Auditee
9548359200 Jennifer R. Koffman Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: NCSC/USA Housing Development Corporation Three, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of NCSC/USA Housing Development Corporation Three, Inc., operating as Lynn Williams Apartments, HUD Project No. 033-EE032, 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 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 NCSC/USA Housing Development Corporation Three, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of NCSC/USA Housing Development Corporation Three, Inc.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: NCSC/USA Housing Development Corporation Three, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. NCSC/USA Housing Development Corporation Three, Inc. has received a HUD capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. NCSC/USA Housing Development Corporation Three, Inc. received no additional loans during the year. The balance of the capital advance outstanding as of December 31, 2023 was $2,840,400.

Finding Details

FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Forty-one tenants. Sample Size Information: Five tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the Project to conduct background checks on potential tenants prior to acceptance. Statement of Condition: Of the tenant files selected, one tenant did not have a background check conducted prior to acceptance. Cause: The Project did not obtain appropriate tenant eligibility documentation as required by HUD. Effect or Potential Effect: Unable to verify eligibility and cost of assistance may be disallowed. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation has been adopted. Recommendation: The Project should implement procedures to ensure that required documentation is obtained prior to acceptance and maintained in the tenant files. Response Indicator: Agree. Completion date: 02/16/2024 Response: Further staff training has been completed and processes put in place to prevent moving forward.
FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: All activity in the replacement reserve account for the year ended December 31, 2023. Sample Size Information: All replacement reserve withdrawals for the year ended December 31, 2023. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, the Project should reimburse the replacement reserve account it the quoted amount on form HUD-9250 exceeds what is ultimately needed. Statement of Condition: The Project requested funds for repairs based on a quote. Ultimately, the amount needed was less and the Project did not reimburse the replacement reserve account for the excess. Cause: Management requested funds for repair work using the proposal and did not reimburse the excess funds once the invoice was received. Effect or Potential Effect: The Project kept $1,100 of the funds from the replacement reserve account. Auditor Non-Compliance Code: N – Replacement Reserve Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation has been adopted. Recommendation: The Project should return the excess withdrawal to the replacement reserve account. Response Indicator: Agree. Completion date: 07/19/2024 Response: Procedures are in place to verify the amounts of the transfers to ensure correct amounts are transferred. The excess withdrawal has been returned.
FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Forty-one tenants. Sample Size Information: Five tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the Project to conduct background checks on potential tenants prior to acceptance. Statement of Condition: Of the tenant files selected, one tenant did not have a background check conducted prior to acceptance. Cause: The Project did not obtain appropriate tenant eligibility documentation as required by HUD. Effect or Potential Effect: Unable to verify eligibility and cost of assistance may be disallowed. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation has been adopted. Recommendation: The Project should implement procedures to ensure that required documentation is obtained prior to acceptance and maintained in the tenant files. Response Indicator: Agree. Completion date: 02/16/2024 Response: Further staff training has been completed and processes put in place to prevent moving forward.
FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: All activity in the replacement reserve account for the year ended December 31, 2023. Sample Size Information: All replacement reserve withdrawals for the year ended December 31, 2023. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, the Project should reimburse the replacement reserve account it the quoted amount on form HUD-9250 exceeds what is ultimately needed. Statement of Condition: The Project requested funds for repairs based on a quote. Ultimately, the amount needed was less and the Project did not reimburse the replacement reserve account for the excess. Cause: Management requested funds for repair work using the proposal and did not reimburse the excess funds once the invoice was received. Effect or Potential Effect: The Project kept $1,100 of the funds from the replacement reserve account. Auditor Non-Compliance Code: N – Replacement Reserve Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation has been adopted. Recommendation: The Project should return the excess withdrawal to the replacement reserve account. Response Indicator: Agree. Completion date: 07/19/2024 Response: Procedures are in place to verify the amounts of the transfers to ensure correct amounts are transferred. The excess withdrawal has been returned.