FAC Explorer

Audit 317535

FY End
2023-12-31
Total Expended
$2.23M
Findings
4
Programs
4
Organization: Retired Steelworkers Housing and Health Development Corporation (FL)
Year: 2023 Accepted: 2024-08-20
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
484632 2023-001 - Yes E
484633 2023-002 - - E
1061074 2023-001 - Yes E
1061075 2023-002 - - E

Programs

ALN Program Spent Major Findings
14.103 Interest Reduction Payments_rental and Cooperative Housing for Lower Income Families $1.37M Yes 2
14.195 Section 8 Housing Assistance Payments Program $612,910 - 0
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $242,971 - 0
14.195 Covid-19 Section 8 Housing Assistance Payments Program $5,439 - 0

Contacts

Name Title Type
J5FMVR8LENF5 Irene Phillips Auditee
9548359200 Dina Bellows-Levine 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: Retired Steelworkers Housing and Health Development Corporation 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 (Schedule) includes the federal award activity of Retired Steelworkers Housing and Health Development Corporation, HUD Project No. 034-45003, 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 Retired Steelworkers Housing and Health Development Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Retired Steelworkers Housing and Health Development Corporation.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT REFINANCE LOAN 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: Retired Steelworkers Housing and Health Development Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Retired Steelworkers Housing and Health Development Corporation has received a HUD mortgage restructuring note under Section 236 of the National Housing Act and a mortgage refinancing loan under Section 207/223(f) of the National Housing Act. The loan balances outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. Retired Steelworkers Housing and Health Development Corporation received no additional loans during the year. The following loans were outstanding as of December 31, 2023: Section 236 Mortgage Restructuring Note was $1,372,157 and Section 207/223(f) Mortgage Refinancing loan was $226,681

Finding Details

Finding 2023-001
FINDING No. 2023-001: Section 236 Mortgage Restructuring Note, ALN 14.103 Finding Resolution Status: Unresolved. Information on Universe Population Size: One hundred twenty tenants. Sample Size Information: Twenty tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2022-001. Criteria: HUD regulations require timely verification of tenant’s initial income through the Enterprise Income Verification (EIV) performed within 90 days of the tenant being entered into Tenant Rental Assistance Certification System (TRACS) with the corresponding documentation maintained. Statement of Condition: The Project attempted to obtain an EIV for one tenant utilizing incorrect information resulting in an accurate report not being obtained within 90 days. Cause: The Project did not adhere to HUD regulations for initial eligibility and did not perform timely income verification. Effect or Potential Effect: Alternative income documentation was provided to verify tenant eligibility and cost of assistance; however, the accuracy of such information was not verified through the EIV system as required by HUD. Auditor Non-Compliance Code: R – Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure the Project verifies tenant eligibility through the EIV system in a timely manner. Response Indicator: Agree. Completion Date: 12/31/2024 Response: Staff training has been provided and included in monthly reporting procedures.
Finding 2023-002
FINDING No. 2023-002: Section 236 Mortgage Restructuring Note, ALN 14.103 Finding Resolution Status: Resolved. Information on Universe Population Size: Eight former tenants. Sample Size Information: Three former tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, the owner must refund the full security deposit plus accrued interest and/or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant’s rights under HUD regulations and state and local laws within 30 days from move-out. Statement of Condition: The Project did not refund the security deposit plus accrued interest to one tenant within the required 30 days from tenant move-out. Cause: The Project did not follow the state law and HUD regulations for refunding security deposits resulting in untimely refunds of security deposits. Effect or Potential Effect: The Project is not in compliance with HUD regulations and state laws requiring tenant security deposits to be refunded within 30 days of a tenant move out if no assessments are made against that tenant. Auditor Non-Compliance Code: M – Security Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: The Project should comply with state law and HUD regulations for refunding security deposits and ensure all refunds are made to the move-out tenants within the required period. Response Indicator: Agree. Completion Date: 10/31/2023 Response: Training has been provided to staff on state and HUD laws and the processes and procedures of refunding move-out tenants within the required period.
Finding 2023-001
FINDING No. 2023-001: Section 236 Mortgage Restructuring Note, ALN 14.103 Finding Resolution Status: Unresolved. Information on Universe Population Size: One hundred twenty tenants. Sample Size Information: Twenty tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2022-001. Criteria: HUD regulations require timely verification of tenant’s initial income through the Enterprise Income Verification (EIV) performed within 90 days of the tenant being entered into Tenant Rental Assistance Certification System (TRACS) with the corresponding documentation maintained. Statement of Condition: The Project attempted to obtain an EIV for one tenant utilizing incorrect information resulting in an accurate report not being obtained within 90 days. Cause: The Project did not adhere to HUD regulations for initial eligibility and did not perform timely income verification. Effect or Potential Effect: Alternative income documentation was provided to verify tenant eligibility and cost of assistance; however, the accuracy of such information was not verified through the EIV system as required by HUD. Auditor Non-Compliance Code: R – Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure the Project verifies tenant eligibility through the EIV system in a timely manner. Response Indicator: Agree. Completion Date: 12/31/2024 Response: Staff training has been provided and included in monthly reporting procedures.
Finding 2023-002
FINDING No. 2023-002: Section 236 Mortgage Restructuring Note, ALN 14.103 Finding Resolution Status: Resolved. Information on Universe Population Size: Eight former tenants. Sample Size Information: Three former tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, the owner must refund the full security deposit plus accrued interest and/or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant’s rights under HUD regulations and state and local laws within 30 days from move-out. Statement of Condition: The Project did not refund the security deposit plus accrued interest to one tenant within the required 30 days from tenant move-out. Cause: The Project did not follow the state law and HUD regulations for refunding security deposits resulting in untimely refunds of security deposits. Effect or Potential Effect: The Project is not in compliance with HUD regulations and state laws requiring tenant security deposits to be refunded within 30 days of a tenant move out if no assessments are made against that tenant. Auditor Non-Compliance Code: M – Security Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: The Project should comply with state law and HUD regulations for refunding security deposits and ensure all refunds are made to the move-out tenants within the required period. Response Indicator: Agree. Completion Date: 10/31/2023 Response: Training has been provided to staff on state and HUD laws and the processes and procedures of refunding move-out tenants within the required period.