Audit 322985

FY End
2023-12-31
Total Expended
$1.37M
Findings
2
Programs
2
Year: 2023 Accepted: 2024-09-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
500152 2023-001 - - N
1076594 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.26M Yes 1
14.181 Project Rental Assistance Contract (prac) $103,969 - 0

Contacts

Name Title Type
X1Q2APRZLDL9 Dan O'Brien Auditee
2132513475 Michele Suchan Auditor
No contacts on file

Notes to SEFA

Title: A Accounting Policies: Note B – Summary of Significant 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. Homeless No More, Inc. 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: Expenditures incurred in connections with the Project operations are summarized on a functional basis; Program sevices and Supporting services. Expenses directly attributable to a specific funtional activity are reported as expenses of those functional activites. Basis Of Presentation - The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Homeless No More, Inc., HUD Project No. 122-HD085-WDD-NP, 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 Homeless No More, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Homeless No More, Inc.
Title: B Accounting Policies: Note B – Summary of Significant 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. Homeless No More, Inc. 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: Expenditures incurred in connections with the Project operations are summarized on a functional basis; Program sevices and Supporting services. Expenses directly attributable to a specific funtional activity are reported as expenses of those functional activites. Summary of Significant 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. Homeless No More, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: C Accounting Policies: Note B – Summary of Significant 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. Homeless No More, Inc. 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: Expenditures incurred in connections with the Project operations are summarized on a functional basis; Program sevices and Supporting services. Expenses directly attributable to a specific funtional activity are reported as expenses of those functional activites. U.S. Department of Housing and Urban Development Loan Program - Homeless No More, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 811 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Homeless No More, Inc. received no additional loans during the year. The balance of the loan outstanding at December 31, 2023 consists of: Outstanding Balance AL # Program Name December 31, 2023 14.181 Section 811 Direct Loan $1,261,500

Finding Details

Condition: The Project did not make timely replacement reserve deposits for 12 of the 12 required monthly deposits for the calendar year ended December 2023, as required by the regulatory agreement. The Project did not make all 12 monthly deposits of $750 for an annual contribution of $9,000 to the replacement reserve account as required by the regulatory agreement. During 2023, 6 deposits of $750 were catch up deposits from 2022. 7 deposits were made for the year 2023. Replacement reserve deposits were short $3,750 for the calendar year ended December 31, 2023. Criteria: Per the regulatory agreement, HUD requires the Project to make equal monthly deposits of $750 for an annual total of $9,000. Effect: For the year ended December 31, 2023 the replacement reserve account is underfunded. A total of $9,750 was deposited into the replacement reserve account for the year 2023 leaving a shortage of $3,750. The Project was not compliant with the HUD regulatory agreement to deposit timely monthly required deposits into the replacement reserves account. Questioned Costs: $ -- Context: All activity for the replacement reserve account was traced and it was determined that the required monthly deposits were not timely deposited. It was determined that 12 out of the 12 monthly deposits were not timely deposited in accordance with the regulatory agreement. Tenant rental subsidies for May 2023 – December 2023, were not received from HUD until December 15, 2023, even though timely HAP vouchers were submitted. This caused a cash flow shortage. Cause: The Project has insufficient cash flow to fund the replacement reserve account in accordance with the regulatory agreement as a result of HUD not funding the rental subsidy in accordance with HUD’s contract with the project. Recommendation: The Project should fund the shortage as soon as possible and make the required timely monthly deposits in accordance with the regulatory agreement. View of Responsible Officials and Planned Corrective Actions: The Project agrees with this finding and will adhere to the corrective action plan on page 33 in this audit report. Response: As of the current date the delinquent deposits have not been brought up to date due to ongoing cash flows issues. The Project has not received tenant rental subsidies in year 2024, even though timely filed. The replacement reserve account will be funded as soon as the HUD assistance payments are received.
Condition: The Project did not make timely replacement reserve deposits for 12 of the 12 required monthly deposits for the calendar year ended December 2023, as required by the regulatory agreement. The Project did not make all 12 monthly deposits of $750 for an annual contribution of $9,000 to the replacement reserve account as required by the regulatory agreement. During 2023, 6 deposits of $750 were catch up deposits from 2022. 7 deposits were made for the year 2023. Replacement reserve deposits were short $3,750 for the calendar year ended December 31, 2023. Criteria: Per the regulatory agreement, HUD requires the Project to make equal monthly deposits of $750 for an annual total of $9,000. Effect: For the year ended December 31, 2023 the replacement reserve account is underfunded. A total of $9,750 was deposited into the replacement reserve account for the year 2023 leaving a shortage of $3,750. The Project was not compliant with the HUD regulatory agreement to deposit timely monthly required deposits into the replacement reserves account. Questioned Costs: $ -- Context: All activity for the replacement reserve account was traced and it was determined that the required monthly deposits were not timely deposited. It was determined that 12 out of the 12 monthly deposits were not timely deposited in accordance with the regulatory agreement. Tenant rental subsidies for May 2023 – December 2023, were not received from HUD until December 15, 2023, even though timely HAP vouchers were submitted. This caused a cash flow shortage. Cause: The Project has insufficient cash flow to fund the replacement reserve account in accordance with the regulatory agreement as a result of HUD not funding the rental subsidy in accordance with HUD’s contract with the project. Recommendation: The Project should fund the shortage as soon as possible and make the required timely monthly deposits in accordance with the regulatory agreement. View of Responsible Officials and Planned Corrective Actions: The Project agrees with this finding and will adhere to the corrective action plan on page 33 in this audit report. Response: As of the current date the delinquent deposits have not been brought up to date due to ongoing cash flows issues. The Project has not received tenant rental subsidies in year 2024, even though timely filed. The replacement reserve account will be funded as soon as the HUD assistance payments are received.