FAC Explorer

Audit 323534

FY End
2022-12-31
Total Expended
$1.50M
Findings
8
Programs
1
Organization: First Ame Housing Association (WA)
Year: 2022 Accepted: 2024-10-01
Auditor: 91-1347576

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
501254 2022-002 Material Weakness Yes E
501255 2022-003 Material Weakness Yes Eligibility
501256 2022-004 Material Weakness - N
501257 2022-005 Material Weakness Yes E
1077696 2022-002 Material Weakness Yes E
1077697 2022-003 Material Weakness Yes Eligibility
1077698 2022-004 Material Weakness - N
1077699 2022-005 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.195 Project-Based Rental Assistance (pbra) $1.50M Yes 4

Contacts

Name Title Type
Z8KXKUMR14M7 Earl Richardson Auditee
2067909197 Ron Fechtner Auditor
No contacts on file

Notes to SEFA

Accounting Policies: BASIS OF PRESENTATION - The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of First AME Housing Association (the Organization) under programs of federal government for the year ended December 31, 2022. 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, or cash flows of the Organization.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 OMB Circular A-122 and 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.

Finding Details

Finding 2022-002
S3800 010 Finding Reference Number: 2022 002 S3800 011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800 015 Type of Finding: Federal Award Finding S3800 016 Finding Resolution Status: In process S3800 017 Information on Universe and Population Size: 98 tenant files S3800 018 Sample Size Information: 1 move in tenant files Sample size: 16 Dollar amount: $0 S3800 019 Identification of Repeat Finding and Finding Reference Number: Repeat finding, prior reference number 2021 002 S3800 020 Criteria: In accordance with eligibility and to determine whether total tenant rent payment were calculated in accordance with program requirements, the owner must correctly verify and calculate income during annual recertifications. S3800 030 Statement of Condition: For one of the files reviewed, there was no income calculation or verification. S3800 032 Cause: Due to lack of staffing, a proper review of the file was not comleted prior to the certification being completed. S3800 033 Effect or Potential Effect and Perspective: Housing assistance may be over paying for tenant. Tenants may not be eligible as required. S3800 035 Auditor Non Compliance Code: R Section 8 program administration S3800 040 Questioned Costs: $0 S3800 045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800 012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association S3800 037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800 050 Context: As noted above, the issue noted was found in 1 out of 16 files. S3800 080 Recommendation: Management and ownership should ensure that all income calculations are accurate by implementing a secondary review of files and an additional calculation worksheet should be used and reviewed. S3800 090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800 130 Response Indicator: Agree S3800 140 Completion Date: 6/30/2024 S3800 150 Response: Ownership agreed with the finding and has implemented a corrective action plan.
Finding 2022-003
S3800 010 Finding Reference Number: 2022 003 S3800 011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800 015 Type of Finding: Federal Award Finding S3800 016 Finding Resolution Status: In process S3800 017 Information on Universe and Population Size: 98 tenant files S3800 018 Sample Size Information: 16 tenant files Sample size: 16 Dollar amount: $0 S3800 019 Identification of Repeat Finding and Finding Reference Number: Repeat finding, prior reference number 2021 004 S3800 020 Criteria: In accordance with the Rental Assistance Agreements with HUD, the Organization is required to recertify tenant eligibility on an annual basis. S3800 030 Statement of Condition: There were 5 out of the 16 tenant files which were processed on later than an annual basis and were late to recertify. In addition, another 5 tenant files of the 16 did not have certifications completed in 2022. S3800 032 Cause: After the prior management left, current staffing was not sufficient to ensure all certifications were completed timely. Also, some tenants were not willing to assist with the certification process. S3800 033 Effect or Potential Effect and Perspective: Housing assistance may be over paying for tenant. Tenants may not be eligible as required. S3800 035 Auditor Non Compliance Code: R Section 8 program administration S3800 040 Questioned Costs: $0 S3800 045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800 012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association S3800 037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800 050 Context: Management did not timely complete annual recertifications of tenants. S3800 080 Recommendation: Management should ensure annual recertifications of tenant files are being completed on a timely basis by implementing secondary review of tenant files and should document the review to be included in the files. S3800 090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800 130 Response Indicator: Agree S3800 140 Completion Date: 2/28/2024 S3800 150 Response: Ownership agreed with the finding and has implemented a corrective action plan.
Finding 2022-004
S3800 010 Finding Reference Number: 2022 004 S3800 011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800 015 Type of Finding: Federal Award Finding S3800 016 Finding Resolution Status: In process S3800 017 Information on Universe and Population Size: Replacement reserve deposits S3800 018 Sample Size Information: There was no sampling related to this finding. S3800 019 Identification of Repeat Finding and Finding Reference Number: N/A S3800 020 Criteria: In accordance with Section 8 contracts for each property, HUD requires monthly deposits to the replacement reserves. S3800 030 Statement of Condition: During 2022, management did not make any deposits to the replacement reserves. S3800 032 Cause: Management made a decision to not make the deposits. S3800 033 Effect or Potential Effect and Perspective: Deposits to the replacement reserves are delinquent in the amount of $294,311 S3800 035 Auditor Non Compliance Code: N Reserve for replacements deposits S3800 040 Questioned Costs: No questioned costs. S3800 045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800 012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association S3800 037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800 050 Context: See statement of condition. S3800 080 Recommendation: Management should implement procedures to ensure that deposits occur monthly. Management should deposit the delinquent funds as soon as possible. S3800 090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800 130 Response Indicator: Agree S3800 140 Completion Date: 3/31/2024 S3800 150 Response: Ownership agreed with the finding and has implemented a corrective action plan.
Finding 2022-005
S3800 010 Finding Reference Number: 2022 005 S3800 011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800 015 Type of Finding: Federal Award Finding S3800 016 Finding Resolution Status: In process S3800 017 Information on Universe and Population Size: Wait list S3800 018 Sample Size Information: There was no sampling S3800 019 Identification of Repeat Finding and Finding Reference Number: Repeat finding, prior reference number 2021 003 S3800 020 Criteria: In accordance with HUD Occupancy Handbook 4350.3 Chapter 4, management must maintain a waitlist that documents when an applicant applied to be on the waitlist, when the applicant was selected correctly from the waitlist or removed from the waitlist. S3800 030 Statement of Condition: Due to management changes the waitlist was not properly maintained during 2022. S3800 032 Cause: Management was not able to determine the correct order of the waitlist and is working on updating the waitlist from prior site manager and management. S3800 033 Effect or Potential Effect and Perspective: Housing assistance may be over paying for tenant. Tenants may not be eligible as required. S3800 035 Auditor Non Compliance Code: R Section 8 program administration S3800 040 Questioned Costs: No questioned costs. S3800 045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800 012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association Bryant, Imperial and Texada S3800 037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800 050 Context: Applicants may not receive housing in the correct order. S3800 080 Recommendation: Management and ownership should finish updating waitlists in a timely manner to ensure waitlists (electronic and hard copy), contain all applicants and notes related to the selection of tenants from the waitlist include descriptions of why other applicants were passed over. Management and ownership should consider purging all waitlists to ensure waitlists are current. S3800 090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800 130 Response Indicator: Agree S3800 140 Completion Date: 2/28/2024 S3800 150 Response: Ownership agreed with the finding and has implemented a corrective action plan.
Finding 2022-002
S3800 010 Finding Reference Number: 2022 002 S3800 011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800 015 Type of Finding: Federal Award Finding S3800 016 Finding Resolution Status: In process S3800 017 Information on Universe and Population Size: 98 tenant files S3800 018 Sample Size Information: 1 move in tenant files Sample size: 16 Dollar amount: $0 S3800 019 Identification of Repeat Finding and Finding Reference Number: Repeat finding, prior reference number 2021 002 S3800 020 Criteria: In accordance with eligibility and to determine whether total tenant rent payment were calculated in accordance with program requirements, the owner must correctly verify and calculate income during annual recertifications. S3800 030 Statement of Condition: For one of the files reviewed, there was no income calculation or verification. S3800 032 Cause: Due to lack of staffing, a proper review of the file was not comleted prior to the certification being completed. S3800 033 Effect or Potential Effect and Perspective: Housing assistance may be over paying for tenant. Tenants may not be eligible as required. S3800 035 Auditor Non Compliance Code: R Section 8 program administration S3800 040 Questioned Costs: $0 S3800 045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800 012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association S3800 037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800 050 Context: As noted above, the issue noted was found in 1 out of 16 files. S3800 080 Recommendation: Management and ownership should ensure that all income calculations are accurate by implementing a secondary review of files and an additional calculation worksheet should be used and reviewed. S3800 090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800 130 Response Indicator: Agree S3800 140 Completion Date: 6/30/2024 S3800 150 Response: Ownership agreed with the finding and has implemented a corrective action plan.
Finding 2022-003
S3800 010 Finding Reference Number: 2022 003 S3800 011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800 015 Type of Finding: Federal Award Finding S3800 016 Finding Resolution Status: In process S3800 017 Information on Universe and Population Size: 98 tenant files S3800 018 Sample Size Information: 16 tenant files Sample size: 16 Dollar amount: $0 S3800 019 Identification of Repeat Finding and Finding Reference Number: Repeat finding, prior reference number 2021 004 S3800 020 Criteria: In accordance with the Rental Assistance Agreements with HUD, the Organization is required to recertify tenant eligibility on an annual basis. S3800 030 Statement of Condition: There were 5 out of the 16 tenant files which were processed on later than an annual basis and were late to recertify. In addition, another 5 tenant files of the 16 did not have certifications completed in 2022. S3800 032 Cause: After the prior management left, current staffing was not sufficient to ensure all certifications were completed timely. Also, some tenants were not willing to assist with the certification process. S3800 033 Effect or Potential Effect and Perspective: Housing assistance may be over paying for tenant. Tenants may not be eligible as required. S3800 035 Auditor Non Compliance Code: R Section 8 program administration S3800 040 Questioned Costs: $0 S3800 045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800 012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association S3800 037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800 050 Context: Management did not timely complete annual recertifications of tenants. S3800 080 Recommendation: Management should ensure annual recertifications of tenant files are being completed on a timely basis by implementing secondary review of tenant files and should document the review to be included in the files. S3800 090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800 130 Response Indicator: Agree S3800 140 Completion Date: 2/28/2024 S3800 150 Response: Ownership agreed with the finding and has implemented a corrective action plan.
Finding 2022-004
S3800 010 Finding Reference Number: 2022 004 S3800 011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800 015 Type of Finding: Federal Award Finding S3800 016 Finding Resolution Status: In process S3800 017 Information on Universe and Population Size: Replacement reserve deposits S3800 018 Sample Size Information: There was no sampling related to this finding. S3800 019 Identification of Repeat Finding and Finding Reference Number: N/A S3800 020 Criteria: In accordance with Section 8 contracts for each property, HUD requires monthly deposits to the replacement reserves. S3800 030 Statement of Condition: During 2022, management did not make any deposits to the replacement reserves. S3800 032 Cause: Management made a decision to not make the deposits. S3800 033 Effect or Potential Effect and Perspective: Deposits to the replacement reserves are delinquent in the amount of $294,311 S3800 035 Auditor Non Compliance Code: N Reserve for replacements deposits S3800 040 Questioned Costs: No questioned costs. S3800 045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800 012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association S3800 037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800 050 Context: See statement of condition. S3800 080 Recommendation: Management should implement procedures to ensure that deposits occur monthly. Management should deposit the delinquent funds as soon as possible. S3800 090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800 130 Response Indicator: Agree S3800 140 Completion Date: 3/31/2024 S3800 150 Response: Ownership agreed with the finding and has implemented a corrective action plan.
Finding 2022-005
S3800 010 Finding Reference Number: 2022 005 S3800 011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800 015 Type of Finding: Federal Award Finding S3800 016 Finding Resolution Status: In process S3800 017 Information on Universe and Population Size: Wait list S3800 018 Sample Size Information: There was no sampling S3800 019 Identification of Repeat Finding and Finding Reference Number: Repeat finding, prior reference number 2021 003 S3800 020 Criteria: In accordance with HUD Occupancy Handbook 4350.3 Chapter 4, management must maintain a waitlist that documents when an applicant applied to be on the waitlist, when the applicant was selected correctly from the waitlist or removed from the waitlist. S3800 030 Statement of Condition: Due to management changes the waitlist was not properly maintained during 2022. S3800 032 Cause: Management was not able to determine the correct order of the waitlist and is working on updating the waitlist from prior site manager and management. S3800 033 Effect or Potential Effect and Perspective: Housing assistance may be over paying for tenant. Tenants may not be eligible as required. S3800 035 Auditor Non Compliance Code: R Section 8 program administration S3800 040 Questioned Costs: No questioned costs. S3800 045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800 012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association Bryant, Imperial and Texada S3800 037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800 050 Context: Applicants may not receive housing in the correct order. S3800 080 Recommendation: Management and ownership should finish updating waitlists in a timely manner to ensure waitlists (electronic and hard copy), contain all applicants and notes related to the selection of tenants from the waitlist include descriptions of why other applicants were passed over. Management and ownership should consider purging all waitlists to ensure waitlists are current. S3800 090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800 130 Response Indicator: Agree S3800 140 Completion Date: 2/28/2024 S3800 150 Response: Ownership agreed with the finding and has implemented a corrective action plan.