Audit 321399

FY End
2023-12-31
Total Expended
$3.86M
Findings
42
Programs
2
Year: 2023 Accepted: 2024-09-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
498684 2023-001 Material Weakness - L
498685 2023-001 Material Weakness - L
498686 2023-002 Material Weakness - B
498687 2023-003 Material Weakness - E
498688 2023-003 Material Weakness - E
498689 2023-003 Material Weakness - E
498690 2023-004 Material Weakness - E
498691 2023-004 Material Weakness - E
498692 2023-004 Material Weakness - E
498693 2023-005 Material Weakness - E
498694 2023-005 Material Weakness - E
498695 2023-005 Material Weakness - E
498696 2023-006 Material Weakness - E
498697 2023-006 Material Weakness - E
498698 2023-006 Material Weakness - E
498699 2023-007 Material Weakness - E
498700 2023-007 Material Weakness - E
498701 2023-007 Material Weakness - E
498702 2023-008 Material Weakness - N
498703 2023-008 Material Weakness - N
498704 2023-008 Material Weakness - N
1075126 2023-001 Material Weakness - L
1075127 2023-001 Material Weakness - L
1075128 2023-002 Material Weakness - B
1075129 2023-003 Material Weakness - E
1075130 2023-003 Material Weakness - E
1075131 2023-003 Material Weakness - E
1075132 2023-004 Material Weakness - E
1075133 2023-004 Material Weakness - E
1075134 2023-004 Material Weakness - E
1075135 2023-005 Material Weakness - E
1075136 2023-005 Material Weakness - E
1075137 2023-005 Material Weakness - E
1075138 2023-006 Material Weakness - E
1075139 2023-006 Material Weakness - E
1075140 2023-006 Material Weakness - E
1075141 2023-007 Material Weakness - E
1075142 2023-007 Material Weakness - E
1075143 2023-007 Material Weakness - E
1075144 2023-008 Material Weakness - N
1075145 2023-008 Material Weakness - N
1075146 2023-008 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $2.80M Yes 7
14.195 Project-Based Rental Assistance (pbra) $664,442 Yes 7

Contacts

Name Title Type
V8F6CN8Y36F4 Takisha Artis Auditee
8158069990 Reginald Keith Mannie 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. Victoria Jennings Residences has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Victoria Jennings Residences 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 Victoria Jennings Residences, Ltd. HUD Project No. 071-HD088, 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Victoria Jennings Residences. Ltd., it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Victoria Jennings Residences, Ltd.
Title: U.S. Department of Housing and Urban Development Loan Program 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. Victoria Jennings Residences has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Victoria Jennings Residences has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Corporation received a Capital Advance on November 1, 2000 in the amount if $2,799,790 under Assistance Listing No. 14.181, which requires the compliance with tenant eligibility restrictions for 40 years.
Title: U.S. Department of Housing and Urban Development Excess Income 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. Victoria Jennings Residences has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Victoria Jennings Residences has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. During the fiscal year of 2021, the Project received excess income in the amount of $66,442 from Housing Assistance Payments and is recorded as Due to HUD-Excess Income.

Finding Details

As a result of our audit, we proposed ten (10) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments were material to the financial statements. Adjustments were necessary for basis areas such as cash, prepaid insurance, fixed assets, accumulated depreciation, accrued expenses, finance lease obligation, note payable, and expenses.
As a result of our audit, we proposed ten (10) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments were material to the financial statements. Adjustments were necessary for basis areas such as cash, prepaid insurance, fixed assets, accumulated depreciation, accrued expenses, finance lease obligation, note payable, and expenses.
During our cash testing, we noted that on December 11, 2023, there was a bank transfer of $1,000 to an unknown reserve line. On January 15, 2024, the Management Agent Controller conducted an inquiry and contacted the Vice President of the Corporation's Board of Directors to contact the bank to determine if this transaction was fraudulent. Per the audit financials, this transaction is recorded as a deposit in transit in the cash operating account until the bank investigation is completed.
During our testing of tenants’ Eligibility, the Project did not complete the recertification process for the following tenants:
During our testing of tenants’ Eligibility, the Project did not complete the recertification process for the following tenants:
During our testing of tenants’ Eligibility, the Project did not complete the recertification process for the following tenants:
During the testing of certification of move-in for Sprouts, Tracey, Unit# 016C, Move-in Date 12/18/2023, the following exception was noted: A. The EIV was not obtained within 90 days of move-in. B. Form HUD 9887 Verification of Information Provided by Applicant and Tenant of Assisted Housing is not signed. C. Form HUD 9887 A Applicant/Tenant’s Consent to the Release of Information was not signed. D. Citizen Declaration Form was blank in the tenant’s file. E. The utility allowance stated on the lease and Form HUD 50059 was $101, not the utility allowance effective June 9, 2023, for $99.00. F. Direct debit card was not verified.
During the testing of certification of move-in for Sprouts, Tracey, Unit# 016C, Move-in Date 12/18/2023, the following exception was noted: A. The EIV was not obtained within 90 days of move-in. B. Form HUD 9887 Verification of Information Provided by Applicant and Tenant of Assisted Housing is not signed. C. Form HUD 9887 A Applicant/Tenant’s Consent to the Release of Information was not signed. D. Citizen Declaration Form was blank in the tenant’s file. E. The utility allowance stated on the lease and Form HUD 50059 was $101, not the utility allowance effective June 9, 2023, for $99.00. F. Direct debit card was not verified.
During the testing of certification of move-in for Sprouts, Tracey, Unit# 016C, Move-in Date 12/18/2023, the following exception was noted: A. The EIV was not obtained within 90 days of move-in. B. Form HUD 9887 Verification of Information Provided by Applicant and Tenant of Assisted Housing is not signed. C. Form HUD 9887 A Applicant/Tenant’s Consent to the Release of Information was not signed. D. Citizen Declaration Form was blank in the tenant’s file. E. The utility allowance stated on the lease and Form HUD 50059 was $101, not the utility allowance effective June 9, 2023, for $99.00. F. Direct debit card was not verified.
During the testing of recertification of Land, Clarisa, Unit# 013A Move-in Date 5/1/2022, Recertification Date 7/1/2023, the following exception was noted: A. The lease amendment was signed, but a new lease was not issued. B. The utility allowance stated in Form HUD 50059 was $101, not the utility allowance effective June 9, 2023, for $99.00.
During the testing of recertification of Land, Clarisa, Unit# 013A Move-in Date 5/1/2022, Recertification Date 7/1/2023, the following exception was noted: A. The lease amendment was signed, but a new lease was not issued. B. The utility allowance stated in Form HUD 50059 was $101, not the utility allowance effective June 9, 2023, for $99.00.
During the testing of recertification of Land, Clarisa, Unit# 013A Move-in Date 5/1/2022, Recertification Date 7/1/2023, the following exception was noted: A. The lease amendment was signed, but a new lease was not issued. B. The utility allowance stated in Form HUD 50059 was $101, not the utility allowance effective June 9, 2023, for $99.00.
During our testing of Tenant Move-in, we noted that prorate of tenant rent was not performed for the following:
During our testing of Tenant Move-in, we noted that prorate of tenant rent was not performed for the following:
During our testing of Tenant Move-in, we noted that prorate of tenant rent was not performed for the following:
During the testing of the move-out of Cooner, Rochelle, Unit#012C, Move-out Date 4/27/2023, the move-out inspection was not performed.
During the testing of the move-out of Cooner, Rochelle, Unit#012C, Move-out Date 4/27/2023, the move-out inspection was not performed.
During the testing of the move-out of Cooner, Rochelle, Unit#012C, Move-out Date 4/27/2023, the move-out inspection was not performed.
During the testing of work orders, the Project could not provide a detailed schedule for work orders and/or work orders for the period of January 1, 2023, through December 31, 2023, for testing.
During the testing of work orders, the Project could not provide a detailed schedule for work orders and/or work orders for the period of January 1, 2023, through December 31, 2023, for testing.
During the testing of work orders, the Project could not provide a detailed schedule for work orders and/or work orders for the period of January 1, 2023, through December 31, 2023, for testing.
As a result of our audit, we proposed ten (10) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments were material to the financial statements. Adjustments were necessary for basis areas such as cash, prepaid insurance, fixed assets, accumulated depreciation, accrued expenses, finance lease obligation, note payable, and expenses.
As a result of our audit, we proposed ten (10) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments were material to the financial statements. Adjustments were necessary for basis areas such as cash, prepaid insurance, fixed assets, accumulated depreciation, accrued expenses, finance lease obligation, note payable, and expenses.
During our cash testing, we noted that on December 11, 2023, there was a bank transfer of $1,000 to an unknown reserve line. On January 15, 2024, the Management Agent Controller conducted an inquiry and contacted the Vice President of the Corporation's Board of Directors to contact the bank to determine if this transaction was fraudulent. Per the audit financials, this transaction is recorded as a deposit in transit in the cash operating account until the bank investigation is completed.
During our testing of tenants’ Eligibility, the Project did not complete the recertification process for the following tenants:
During our testing of tenants’ Eligibility, the Project did not complete the recertification process for the following tenants:
During our testing of tenants’ Eligibility, the Project did not complete the recertification process for the following tenants:
During the testing of certification of move-in for Sprouts, Tracey, Unit# 016C, Move-in Date 12/18/2023, the following exception was noted: A. The EIV was not obtained within 90 days of move-in. B. Form HUD 9887 Verification of Information Provided by Applicant and Tenant of Assisted Housing is not signed. C. Form HUD 9887 A Applicant/Tenant’s Consent to the Release of Information was not signed. D. Citizen Declaration Form was blank in the tenant’s file. E. The utility allowance stated on the lease and Form HUD 50059 was $101, not the utility allowance effective June 9, 2023, for $99.00. F. Direct debit card was not verified.
During the testing of certification of move-in for Sprouts, Tracey, Unit# 016C, Move-in Date 12/18/2023, the following exception was noted: A. The EIV was not obtained within 90 days of move-in. B. Form HUD 9887 Verification of Information Provided by Applicant and Tenant of Assisted Housing is not signed. C. Form HUD 9887 A Applicant/Tenant’s Consent to the Release of Information was not signed. D. Citizen Declaration Form was blank in the tenant’s file. E. The utility allowance stated on the lease and Form HUD 50059 was $101, not the utility allowance effective June 9, 2023, for $99.00. F. Direct debit card was not verified.
During the testing of certification of move-in for Sprouts, Tracey, Unit# 016C, Move-in Date 12/18/2023, the following exception was noted: A. The EIV was not obtained within 90 days of move-in. B. Form HUD 9887 Verification of Information Provided by Applicant and Tenant of Assisted Housing is not signed. C. Form HUD 9887 A Applicant/Tenant’s Consent to the Release of Information was not signed. D. Citizen Declaration Form was blank in the tenant’s file. E. The utility allowance stated on the lease and Form HUD 50059 was $101, not the utility allowance effective June 9, 2023, for $99.00. F. Direct debit card was not verified.
During the testing of recertification of Land, Clarisa, Unit# 013A Move-in Date 5/1/2022, Recertification Date 7/1/2023, the following exception was noted: A. The lease amendment was signed, but a new lease was not issued. B. The utility allowance stated in Form HUD 50059 was $101, not the utility allowance effective June 9, 2023, for $99.00.
During the testing of recertification of Land, Clarisa, Unit# 013A Move-in Date 5/1/2022, Recertification Date 7/1/2023, the following exception was noted: A. The lease amendment was signed, but a new lease was not issued. B. The utility allowance stated in Form HUD 50059 was $101, not the utility allowance effective June 9, 2023, for $99.00.
During the testing of recertification of Land, Clarisa, Unit# 013A Move-in Date 5/1/2022, Recertification Date 7/1/2023, the following exception was noted: A. The lease amendment was signed, but a new lease was not issued. B. The utility allowance stated in Form HUD 50059 was $101, not the utility allowance effective June 9, 2023, for $99.00.
During our testing of Tenant Move-in, we noted that prorate of tenant rent was not performed for the following:
During our testing of Tenant Move-in, we noted that prorate of tenant rent was not performed for the following:
During our testing of Tenant Move-in, we noted that prorate of tenant rent was not performed for the following:
During the testing of the move-out of Cooner, Rochelle, Unit#012C, Move-out Date 4/27/2023, the move-out inspection was not performed.
During the testing of the move-out of Cooner, Rochelle, Unit#012C, Move-out Date 4/27/2023, the move-out inspection was not performed.
During the testing of the move-out of Cooner, Rochelle, Unit#012C, Move-out Date 4/27/2023, the move-out inspection was not performed.
During the testing of work orders, the Project could not provide a detailed schedule for work orders and/or work orders for the period of January 1, 2023, through December 31, 2023, for testing.
During the testing of work orders, the Project could not provide a detailed schedule for work orders and/or work orders for the period of January 1, 2023, through December 31, 2023, for testing.
During the testing of work orders, the Project could not provide a detailed schedule for work orders and/or work orders for the period of January 1, 2023, through December 31, 2023, for testing.