FAC Explorer

Audit 325950

FY End
2024-06-30
Total Expended
$1.28M
Findings
4
Programs
1
Organization: Crease-Dyre Housing Development Corporation (PA)
Year: 2024 Accepted: 2024-10-25
Auditor: McKonly & Asbury LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
503709 2024-002 - - E
503710 2024-002 - - E
1080151 2024-002 - - E
1080152 2024-002 - - E

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $64,430 Yes 1

Contacts

Name Title Type
MKA8AT1V1954 Michon Dinwoodie Auditee
2155578414 Jaclyn Winchell 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. De Minimis Rate Used: N Rate Explanation: Crease-Dyre Housing Development Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Crease-Dyre Housing Development Corporation under programs of the federal government for the year ended June 30, 2024. 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 Crease-Dyre Housing Development Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Crease-Dyre Housing Development Corporation.
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. De Minimis Rate Used: N Rate Explanation: Crease-Dyre Housing Development Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Crease-Dyre Housing Development Corporation has received U.S. Department of Housing and Urban Development direct loans. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Crease-Dyre Housing Development Corporation received no additional loans during the year. The balance of the loans outstanding at June 30, 2024: "See the Notes to the SEFA for chart/table".

Finding Details

Finding 2024-002
Criteria: Under Tenant Application, Eligibility, and Recertification requirements from HUD, management is required to submit monthly HAP vouchers by the tenth day of preceding month for which the request is being made. Condition: Management has been unable to submit monthly HAP vouchers by the required timeline due to significant contract rent increases at the Entity during the year. This required manual review of the HAP vouchers from HUD to be complete prior to being able to submit future HAP vouchers. The following Entity had late HAP vouchers during the year ended June 30, 2024: Crease-Dyre Housing Development Corporation - 11 vouchers late. Cause: Management could not submit HAP vouchers after the contract rent increases since the HAP vouchers required a manual review from HUD. Once the HAP voucher was manually reviewed by HUD, management could begin submitting the previously missed monthly HAP vouchers. Effect or potential effect: A delay in submitting monthly HAP vouchers prevents the Entity from being in compliance with the requirements from HUD. Recommendation: Management should communicate with HUD to determine a plan to get the monthly HAP voucher submissions current. Questioned costs: None identified. Views of responsible officials: For a period of 8 years, management had not sought budget-based rent increases (BBRI) for the Section 811 properties. This caused the properties to not have sufficient cash to operate at breakeven basis. Management addressed the systemic issues that prevented properties from receiving these important increases. For FY24, Management received substantial rent increases from HUD. Because of the percentage increase in this one year, HUD practices require that vouchers need to be reviewed by hand and HUD will only take vouchers one month at a time. This resulted in the late vouchers that you see above. Because we sought a regular annual BBRI in FY25, the late vouchering will not happen again.
Finding 2024-002
Criteria: Under Tenant Application, Eligibility, and Recertification requirements from HUD, management is required to submit monthly HAP vouchers by the tenth day of preceding month for which the request is being made. Condition: Management has been unable to submit monthly HAP vouchers by the required timeline due to significant contract rent increases at the Entity during the year. This required manual review of the HAP vouchers from HUD to be complete prior to being able to submit future HAP vouchers. The following Entity had late HAP vouchers during the year ended June 30, 2024: Crease-Dyre Housing Development Corporation - 11 vouchers late. Cause: Management could not submit HAP vouchers after the contract rent increases since the HAP vouchers required a manual review from HUD. Once the HAP voucher was manually reviewed by HUD, management could begin submitting the previously missed monthly HAP vouchers. Effect or potential effect: A delay in submitting monthly HAP vouchers prevents the Entity from being in compliance with the requirements from HUD. Recommendation: Management should communicate with HUD to determine a plan to get the monthly HAP voucher submissions current. Questioned costs: None identified. Views of responsible officials: For a period of 8 years, management had not sought budget-based rent increases (BBRI) for the Section 811 properties. This caused the properties to not have sufficient cash to operate at breakeven basis. Management addressed the systemic issues that prevented properties from receiving these important increases. For FY24, Management received substantial rent increases from HUD. Because of the percentage increase in this one year, HUD practices require that vouchers need to be reviewed by hand and HUD will only take vouchers one month at a time. This resulted in the late vouchers that you see above. Because we sought a regular annual BBRI in FY25, the late vouchering will not happen again.
Finding 2024-002
Criteria: Under Tenant Application, Eligibility, and Recertification requirements from HUD, management is required to submit monthly HAP vouchers by the tenth day of preceding month for which the request is being made. Condition: Management has been unable to submit monthly HAP vouchers by the required timeline due to significant contract rent increases at the Entity during the year. This required manual review of the HAP vouchers from HUD to be complete prior to being able to submit future HAP vouchers. The following Entity had late HAP vouchers during the year ended June 30, 2024: Crease-Dyre Housing Development Corporation - 11 vouchers late. Cause: Management could not submit HAP vouchers after the contract rent increases since the HAP vouchers required a manual review from HUD. Once the HAP voucher was manually reviewed by HUD, management could begin submitting the previously missed monthly HAP vouchers. Effect or potential effect: A delay in submitting monthly HAP vouchers prevents the Entity from being in compliance with the requirements from HUD. Recommendation: Management should communicate with HUD to determine a plan to get the monthly HAP voucher submissions current. Questioned costs: None identified. Views of responsible officials: For a period of 8 years, management had not sought budget-based rent increases (BBRI) for the Section 811 properties. This caused the properties to not have sufficient cash to operate at breakeven basis. Management addressed the systemic issues that prevented properties from receiving these important increases. For FY24, Management received substantial rent increases from HUD. Because of the percentage increase in this one year, HUD practices require that vouchers need to be reviewed by hand and HUD will only take vouchers one month at a time. This resulted in the late vouchers that you see above. Because we sought a regular annual BBRI in FY25, the late vouchering will not happen again.
Finding 2024-002
Criteria: Under Tenant Application, Eligibility, and Recertification requirements from HUD, management is required to submit monthly HAP vouchers by the tenth day of preceding month for which the request is being made. Condition: Management has been unable to submit monthly HAP vouchers by the required timeline due to significant contract rent increases at the Entity during the year. This required manual review of the HAP vouchers from HUD to be complete prior to being able to submit future HAP vouchers. The following Entity had late HAP vouchers during the year ended June 30, 2024: Crease-Dyre Housing Development Corporation - 11 vouchers late. Cause: Management could not submit HAP vouchers after the contract rent increases since the HAP vouchers required a manual review from HUD. Once the HAP voucher was manually reviewed by HUD, management could begin submitting the previously missed monthly HAP vouchers. Effect or potential effect: A delay in submitting monthly HAP vouchers prevents the Entity from being in compliance with the requirements from HUD. Recommendation: Management should communicate with HUD to determine a plan to get the monthly HAP voucher submissions current. Questioned costs: None identified. Views of responsible officials: For a period of 8 years, management had not sought budget-based rent increases (BBRI) for the Section 811 properties. This caused the properties to not have sufficient cash to operate at breakeven basis. Management addressed the systemic issues that prevented properties from receiving these important increases. For FY24, Management received substantial rent increases from HUD. Because of the percentage increase in this one year, HUD practices require that vouchers need to be reviewed by hand and HUD will only take vouchers one month at a time. This resulted in the late vouchers that you see above. Because we sought a regular annual BBRI in FY25, the late vouchering will not happen again.