Audit 32172

FY End

2022-06-30

Total Expended

$1.18M

Findings

2

Programs

2

Organization: Greater Tucson Lions Senior Citizen Foundation Inc. (AZ)

Year: 2022 Accepted: 2022-10-18

Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
32250	2022-003	Material Weakness	Yes	N
608692	2022-003	Material Weakness	Yes	N

ALN	Program	Spent	Major	Findings
14.155	Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects	$964,654	Yes	1
14.195	Section 8 Housing Assistance Payments Program	$219,480	-	0

Contacts

Name	Title	Type
G4J2KSTZ44H9	Eddie Richardson	Auditee
6022449758	Pamela Eggert	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance hasbeen provided to a subrecipient. The Projects summary of significant accounting policies is presented in Note 1in the Projects basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 940759.

Title: Basis of Preperation Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance hasbeen provided to a subrecipient. The Projects summary of significant accounting policies is presented in Note 1in the Projects basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activityof Greater Tucson Lions Senior Citizen Foundation, Inc. HUD Project No. 12311150 (the Project) under programsof the federal government for the year ended June 30, 2022. The information is presented in accordance withthe 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 presentsonly a selected portion of the operations of the Project, it is not intended to and does not present the financialposition, changes in net assets or cash flows of the Project. The Project received federal awards directly fromfederal agencies.

Finding Details

Finding 2022-003

Criteria: Under the regulatory agreement with HUD, the Project is required to ensure that funds are only used for the purpose of necessary expenditures of the property and operating the project. Condition: During our testing of disbursements, it was noted there was no evidence of review or approval for 53 of 60 disbursements. Additionally, two out of the 60 disbursements, totaling $169, did not have a supporting invoice and we were unable to determine if the expenditures were appropriate and necessary expenditures for the Project. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 transactions out of 314 total transactions were selected for disbursement testing, which accounted for $59,887 of $340,478 of project disbursements for the year ended June 30, 2022. Cause: Management oversight and a lack of segregation of duties. Effect: The Project was not in compliance with HUD requirements as it relates to controls over the use of project funds. Repeat Finding from Prior Year(s): Yes, prior year finding 2021-003. Recommendation: We recommend the Project follow its internal control process and document review of invoices before they are paid to ensure they are in fact expenses related to the Project. Views of Responsible Officials: Management agrees with the finding.

Finding 2022-003

Criteria: Under the regulatory agreement with HUD, the Project is required to ensure that funds are only used for the purpose of necessary expenditures of the property and operating the project. Condition: During our testing of disbursements, it was noted there was no evidence of review or approval for 53 of 60 disbursements. Additionally, two out of the 60 disbursements, totaling $169, did not have a supporting invoice and we were unable to determine if the expenditures were appropriate and necessary expenditures for the Project. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 transactions out of 314 total transactions were selected for disbursement testing, which accounted for $59,887 of $340,478 of project disbursements for the year ended June 30, 2022. Cause: Management oversight and a lack of segregation of duties. Effect: The Project was not in compliance with HUD requirements as it relates to controls over the use of project funds. Repeat Finding from Prior Year(s): Yes, prior year finding 2021-003. Recommendation: We recommend the Project follow its internal control process and document review of invoices before they are paid to ensure they are in fact expenses related to the Project. Views of Responsible Officials: Management agrees with the finding.