FAC Explorer

Audit 318500

FY End
2023-12-31
Total Expended
$1.27M
Findings
6
Programs
2
Organization: Rayne Elderly Housing Corporation Operating As Leisure Lane Apartments (FL)
Year: 2023 Accepted: 2024-09-04
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
485697 2023-001 - - N
485698 2023-002 - Yes N
485699 2023-003 - - E
1062139 2023-001 - - N
1062140 2023-002 - Yes N
1062141 2023-003 - - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $1.13M Yes 1
14.157 Supportive Housing for the Elderly - Prac $139,072 Yes 2

Contacts

Name Title Type
CLMSU3TNLDB4 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: Rayne Elderly Housing 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 includes the federal award activity of Rayne Elderly Housing Corporation, HUD Project No. 064-EE065, 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 Rayne Elderly Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Rayne Elderly Housing Corporation.
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: Rayne Elderly Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Rayne Elderly Housing Corporation 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. Rayne Elderly Housing Corporation received no additional loans during the year. The balance of the capital advance outstanding as of December 31, 2023 was $1,130,793.

Finding Details

Finding 2023-001
FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended December 31, 2023. Sample Size Information: Required replacement deposits for the year ended December 31, 2023. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, the required monthly deposit must be made to the Project's reserve for replacement account. Statement of Condition: The Project overfunded the account by $9,600. Cause: The Project overfunded the replacement reserve account for two months after receiving approval for a suspension of deposits. Effect or Potential Effect: Overfunded reserve for replacement account. Auditor Non-Compliance Code: N – Reserve for Replacements deposits. 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 that the correct amount is deposited into the replacement reserve account each month and request a HUD Form 9250 to withdraw the excess funding. Response Indicator: Agree. Completion Date: 12/31/2024. Response: The verification of the correct funding amounts is now confirmed against the approved 9250 on a monthly basis and is a step that has been added on the month-end close checklist.
Finding 2023-002
FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157. Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: Yes, 2022-002. Criteria: As required by HUD regulations, applications for renewal of the PRAC contracts must be completed 120 days prior to the PRAC expiration date. Statement of Condition: The Project did not complete the renewa process 120 days prior to the PRAC expiration date. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in a delay of HUD funding. Effect or Potential Effect: The Project is not in compliance with HUD regulations for timely renewal of PRAC contract resulting in delayed receipt of HAP funds. 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 have been adopted. Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding. Response Indicator: Agree. Completion Date: 06/07/2023. Response: A schedule of contract renewals is in process and will be reviewed on a regular basis.
Finding 2023-003
FINDING No. 2023-003: Section 202 Supportive Housing for the Elderly, ALN 14.157. Finding Resolution Status: Unresolved. Information on Universe Population Size: Nineteen tenants. Sample Size Information: Three tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations requires timely verification of tenant’s initial income through the use of Enterprise Income Verification (EIV) reports with the corresponding documentation maintained. Statement of Condition: The Project did not perform and/or maintain the initial EIV for one tenant. Cause: The Project did not adhere to HUD regulations for initial eligibility and did not perform timely income verification. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency 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 recommendations will be adopted. Recommendation: The Project should implement procedures to ensure the Project verifies initial tenant income through the EIV system in a timely manner and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 12/31/2024. Response: Staff training has been provided and included in the monthly reporting procedures.
Finding 2023-001
FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended December 31, 2023. Sample Size Information: Required replacement deposits for the year ended December 31, 2023. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, the required monthly deposit must be made to the Project's reserve for replacement account. Statement of Condition: The Project overfunded the account by $9,600. Cause: The Project overfunded the replacement reserve account for two months after receiving approval for a suspension of deposits. Effect or Potential Effect: Overfunded reserve for replacement account. Auditor Non-Compliance Code: N – Reserve for Replacements deposits. 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 that the correct amount is deposited into the replacement reserve account each month and request a HUD Form 9250 to withdraw the excess funding. Response Indicator: Agree. Completion Date: 12/31/2024. Response: The verification of the correct funding amounts is now confirmed against the approved 9250 on a monthly basis and is a step that has been added on the month-end close checklist.
Finding 2023-002
FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157. Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: Yes, 2022-002. Criteria: As required by HUD regulations, applications for renewal of the PRAC contracts must be completed 120 days prior to the PRAC expiration date. Statement of Condition: The Project did not complete the renewa process 120 days prior to the PRAC expiration date. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in a delay of HUD funding. Effect or Potential Effect: The Project is not in compliance with HUD regulations for timely renewal of PRAC contract resulting in delayed receipt of HAP funds. 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 have been adopted. Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding. Response Indicator: Agree. Completion Date: 06/07/2023. Response: A schedule of contract renewals is in process and will be reviewed on a regular basis.
Finding 2023-003
FINDING No. 2023-003: Section 202 Supportive Housing for the Elderly, ALN 14.157. Finding Resolution Status: Unresolved. Information on Universe Population Size: Nineteen tenants. Sample Size Information: Three tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations requires timely verification of tenant’s initial income through the use of Enterprise Income Verification (EIV) reports with the corresponding documentation maintained. Statement of Condition: The Project did not perform and/or maintain the initial EIV for one tenant. Cause: The Project did not adhere to HUD regulations for initial eligibility and did not perform timely income verification. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency 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 recommendations will be adopted. Recommendation: The Project should implement procedures to ensure the Project verifies initial tenant income through the EIV system in a timely manner and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 12/31/2024. Response: Staff training has been provided and included in the monthly reporting procedures.