FAC Explorer

Audit 322465

FY End
2023-12-31
Total Expended
$3.45M
Findings
4
Programs
1
Organization: Hazel Dell Non Profit Housing (WA)
Year: 2023 Accepted: 2024-09-30
Auditor: Loveridge Hunt & CO PLLC CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499610 2023-001 Significant Deficiency - E
499611 2023-001 Significant Deficiency - E
1076052 2023-001 Significant Deficiency - E
1076053 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $158,741 Yes 1

Contacts

Name Title Type
F9ANHJHFS8W9 Victor Caesar Auditee
3606942501 Ron Fechtner Auditor
No contacts on file

Notes to SEFA

Title: SECTION 202 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 OMB Circular A-122 and Uniform Guidance. The Organization did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. At December 31, 2023, Hazel Dell Non-Profit Housing had the following Section 202 capital advance which is presented in net assets with donor restrictions. The capital advance is also included in the federal expenditures presented. Program or Cluster Title: Supportive Housing for the Elderly (Section 202 Direct Loan); Federal ALN: 14.157; Amount Outstanding: $ 3,287,300
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 OMB Circular A-122 and Uniform Guidance. The Organization did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Hazel Dell Non-Profit Housing (the Organization) under programs of federal government for the year ended December 31, 2023. 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 operation of the Organization, it is not intended to and does not present the financial position, changes in net assets (deficit), or cash flows of the Organization.

Finding Details

Finding 2023-001
Title and Assistance Listing Number of Federal Program: 14.157 Supportive Housing for the Elderly (Section 202); Type of Finding: Federal Award Finding; Finding Resolution Status: In process; Information on Universe and Population Size: 44 tenant files; Sample Size Information: 5 tenant files, Was the error discovered as a result of a sampling procedure? Yes, Sample size: 5, Dollar amount: $ 3,485; Identification of Repeat Finding and Finding Reference Number: Not a repeat finding.; Criteria: In accordance with eligibility and to determine whether total tenant rent payment were calculated in accordance with program requirements, the owner is responsible for annually reexamining incomes of households occupying assisted units and making appropriate adjustments to the tenant payment and the project rental assistance payment.; Statement of Condition: Four of the tenant files selected for review were charged with rental rates higher than the HAP contract.; Cause: Property manager error on contract rate input.; Effect or Potential Effect and Perspective: Overstatement of rent received and housing assistance for tenants.; Auditor Non-Compliance Code: R - Section 8 program administration; Questioned Costs: $9,504, If the value for account S3800-035 is "G" or "H", then this value must be greater than zero.; Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan.; Please identify the property(s) and associated questioned costs this finding applies to: Arbor Ridge Apartments; FHA/Contract Number: 126-EE027; Context: As noted above, the issue noted was found in 4 out of 5 files.; Recommendation: Management and ownership should ensure that contract rates are properly inputted in the system by implementing a secondary review of files.; Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor.; Response Indicator: Agree; Completion Date: 9/23/2024; Response: Ownership agreed with the finding and has implemented a corrective action plan.
Finding 2023-001
Title and Assistance Listing Number of Federal Program: 14.157 Supportive Housing for the Elderly (Section 202); Type of Finding: Federal Award Finding; Finding Resolution Status: In process; Information on Universe and Population Size: 44 tenant files; Sample Size Information: 5 tenant files, Was the error discovered as a result of a sampling procedure? Yes, Sample size: 5, Dollar amount: $ 3,485; Identification of Repeat Finding and Finding Reference Number: Not a repeat finding.; Criteria: In accordance with eligibility and to determine whether total tenant rent payment were calculated in accordance with program requirements, the owner is responsible for annually reexamining incomes of households occupying assisted units and making appropriate adjustments to the tenant payment and the project rental assistance payment.; Statement of Condition: Four of the tenant files selected for review were charged with rental rates higher than the HAP contract.; Cause: Property manager error on contract rate input.; Effect or Potential Effect and Perspective: Overstatement of rent received and housing assistance for tenants.; Auditor Non-Compliance Code: R - Section 8 program administration; Questioned Costs: $9,504, If the value for account S3800-035 is "G" or "H", then this value must be greater than zero.; Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan.; Please identify the property(s) and associated questioned costs this finding applies to: Arbor Ridge Apartments; FHA/Contract Number: 126-EE027; Context: As noted above, the issue noted was found in 4 out of 5 files.; Recommendation: Management and ownership should ensure that contract rates are properly inputted in the system by implementing a secondary review of files.; Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor.; Response Indicator: Agree; Completion Date: 9/23/2024; Response: Ownership agreed with the finding and has implemented a corrective action plan.
Finding 2023-001
Title and Assistance Listing Number of Federal Program: 14.157 Supportive Housing for the Elderly (Section 202); Type of Finding: Federal Award Finding; Finding Resolution Status: In process; Information on Universe and Population Size: 44 tenant files; Sample Size Information: 5 tenant files, Was the error discovered as a result of a sampling procedure? Yes, Sample size: 5, Dollar amount: $ 3,485; Identification of Repeat Finding and Finding Reference Number: Not a repeat finding.; Criteria: In accordance with eligibility and to determine whether total tenant rent payment were calculated in accordance with program requirements, the owner is responsible for annually reexamining incomes of households occupying assisted units and making appropriate adjustments to the tenant payment and the project rental assistance payment.; Statement of Condition: Four of the tenant files selected for review were charged with rental rates higher than the HAP contract.; Cause: Property manager error on contract rate input.; Effect or Potential Effect and Perspective: Overstatement of rent received and housing assistance for tenants.; Auditor Non-Compliance Code: R - Section 8 program administration; Questioned Costs: $9,504, If the value for account S3800-035 is "G" or "H", then this value must be greater than zero.; Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan.; Please identify the property(s) and associated questioned costs this finding applies to: Arbor Ridge Apartments; FHA/Contract Number: 126-EE027; Context: As noted above, the issue noted was found in 4 out of 5 files.; Recommendation: Management and ownership should ensure that contract rates are properly inputted in the system by implementing a secondary review of files.; Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor.; Response Indicator: Agree; Completion Date: 9/23/2024; Response: Ownership agreed with the finding and has implemented a corrective action plan.
Finding 2023-001
Title and Assistance Listing Number of Federal Program: 14.157 Supportive Housing for the Elderly (Section 202); Type of Finding: Federal Award Finding; Finding Resolution Status: In process; Information on Universe and Population Size: 44 tenant files; Sample Size Information: 5 tenant files, Was the error discovered as a result of a sampling procedure? Yes, Sample size: 5, Dollar amount: $ 3,485; Identification of Repeat Finding and Finding Reference Number: Not a repeat finding.; Criteria: In accordance with eligibility and to determine whether total tenant rent payment were calculated in accordance with program requirements, the owner is responsible for annually reexamining incomes of households occupying assisted units and making appropriate adjustments to the tenant payment and the project rental assistance payment.; Statement of Condition: Four of the tenant files selected for review were charged with rental rates higher than the HAP contract.; Cause: Property manager error on contract rate input.; Effect or Potential Effect and Perspective: Overstatement of rent received and housing assistance for tenants.; Auditor Non-Compliance Code: R - Section 8 program administration; Questioned Costs: $9,504, If the value for account S3800-035 is "G" or "H", then this value must be greater than zero.; Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan.; Please identify the property(s) and associated questioned costs this finding applies to: Arbor Ridge Apartments; FHA/Contract Number: 126-EE027; Context: As noted above, the issue noted was found in 4 out of 5 files.; Recommendation: Management and ownership should ensure that contract rates are properly inputted in the system by implementing a secondary review of files.; Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor.; Response Indicator: Agree; Completion Date: 9/23/2024; Response: Ownership agreed with the finding and has implemented a corrective action plan.