FAC Explorer

Audit 340847

FY End
2021-12-31
Total Expended
$5.31M
Findings
6
Programs
2
Organization: Hoover Seniors (CA)
Year: 2021 Accepted: 2025-01-31
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
520955 2021-001 Significant Deficiency Yes P
520956 2021-002 Significant Deficiency Yes P
520957 2021-003 Significant Deficiency Yes C
1097397 2021-001 Significant Deficiency Yes P
1097398 2021-002 Significant Deficiency Yes P
1097399 2021-003 Significant Deficiency Yes C

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $4.13M Yes 3
14.239 Home Investment Partnerships Program $1.18M Yes 0

Contacts

Name Title Type
KSAUARTN5RL1 Donzella Jordan Auditee
3108770346 Michael J. Good, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the OMB Circular A-122, Cost Principles for Non-Profit Organizations and 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: Hoover Seniors has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of Hoover Seniors, HUD Project No. 122-EE096-WAH-NP, under programs of the federal government for the year ended December 31, 2021. 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 Hoover Seniors it is not intended to and does not present the financial position, changes in net assets (deficit), or cash flows of Hoover Seniors. For the year ended December 31, 2021, no awards were passed through to subrecipients.
Title: Note 2 - Summary of significant accounting policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the OMB Circular A-122, Cost Principles for Non-Profit Organizations and 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: Hoover Seniors has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 - Indirect cost rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the OMB Circular A-122, Cost Principles for Non-Profit Organizations and 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: Hoover Seniors has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Hoover Seniors has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4 - 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, as applicable, the cost principles contained in the OMB Circular A-122, Cost Principles for Non-Profit Organizations and 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: Hoover Seniors has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Hoover Seniors has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act and a loan with the City of Los Angeles under the HOME Investment Partnership Program. The loan balances outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. Hoover Seniors received no additional loans during the year. The balances of the loans outstanding at December 31, 2021 consists of: "See the Notes to the SEFA for chart/table"

Finding Details

Finding 2021-001
Condition/Context The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days following the end of the fiscal year ending December 31, 2021 or within nine months of fiscal year end if an owner certified submission was furnished to HUD. Criteria The Regulatory Agreement requires, within ninety (90) days, or such period established in writing by HUD, following the end of each fiscal year, the Corporation shall furnish HUD with a complete annual financial report based upon an examination of the books and records of the Corporation prepared in accordance with GAAP, audited in accordance with Generally Accepted Auditing Standards and Government Auditing Standards and any additional requirements of HUD unless the report is waived in writing by HUD. Effect or Potential Effect The Corporation is not in compliance with the Regulatory Agreement. Cause The Owner and Management Agent had a change in auditors and did not provide financial information in a timely manner. Identification as a Repeat Finding 2020-001 Recommendation The Corporation should file the December 31, 2021 financial statements as soon as possible and should ensure the annual financial report is filed within 90 days in future periods or within nine months of fiscal year end if an owner certified submission was furnished to HUD. Auditor Noncompliance Code: Z - Other Finding Resolution Status Open. Reporting Views of Responsible Officials Management will make efforts to submit the annual report more timely going forward.
Finding 2021-002
Condition/Context The Corporation did not submit the Data Collection Form for the year ended December 31, 2021 to the OMB in a timely manner as required by Uniform Guidance section 2 CFR 200.512. Criteria Uniform Guidance section 2 CFR 200.512 requires that Data Collection Form (SF-SAC) be submitted to the Office of Managements and Budget (OMB) within the earlier of 30 days after the date of the auditor's report, or nine months after the end of the audit period. Effect or Potential Effect The Corporation is not in compliance with Uniform Guidance. Cause The Owner and Management Agent had a change in auditors and did not provide financial information in a timely manner. Identification as a Repeat Finding 2020-002 Recommendation The Corporation should file the December 31, 2021 financial statements as soon as possible and should ensure the annual financial report is filed within 30 days after the date of the auditor's report and within nine months of fiscal year end. Auditor Noncompliance Code: Z - Other Finding Resolution Status Open. Reporting Views of Responsible Officials Management will make efforts to submit the Data Collection Form more timely going forward.
Finding 2021-003
Condition/Context At December 31, 2021, deposits to the reserve for replacements account in a cumulative amount of $3,305 have not been made. Criteria Pursuant to Section 5(a) of the Regulatory Agreement, the Corporation shall establish and maintain a reserve fund for replacements and deposit an amount equal to $1,377 per month unless a different date or amount is approved in writing by HUD. The Corporation failed to make the required deposits to the reserve for replacements fund. Effect or Potential Effect The Corporation is not in compliance with the Regulatory Agreement. Cause Due to operating cash flow shortages, the required monthly deposits to the reserve for replacements are not being made. Identification as a Repeat Finding 2020-003 Recommendation Management should transfer excess funds from the operating account to the reserve for replacements account and continue to work toward bringing the delinquent accounts current. Questioned Costs $3,305 Auditor Noncompliance Code: N - Reserve for Replacements Deposits Finding Resolution Status Open. Reporting Views of Responsible Officials Management will transfer excess funds from the operating account to the reserve for replacements account to catch up delinquency. Additionally, management will be sure to make all deposits going forward.
Finding 2021-001
Condition/Context The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days following the end of the fiscal year ending December 31, 2021 or within nine months of fiscal year end if an owner certified submission was furnished to HUD. Criteria The Regulatory Agreement requires, within ninety (90) days, or such period established in writing by HUD, following the end of each fiscal year, the Corporation shall furnish HUD with a complete annual financial report based upon an examination of the books and records of the Corporation prepared in accordance with GAAP, audited in accordance with Generally Accepted Auditing Standards and Government Auditing Standards and any additional requirements of HUD unless the report is waived in writing by HUD. Effect or Potential Effect The Corporation is not in compliance with the Regulatory Agreement. Cause The Owner and Management Agent had a change in auditors and did not provide financial information in a timely manner. Identification as a Repeat Finding 2020-001 Recommendation The Corporation should file the December 31, 2021 financial statements as soon as possible and should ensure the annual financial report is filed within 90 days in future periods or within nine months of fiscal year end if an owner certified submission was furnished to HUD. Auditor Noncompliance Code: Z - Other Finding Resolution Status Open. Reporting Views of Responsible Officials Management will make efforts to submit the annual report more timely going forward.
Finding 2021-002
Condition/Context The Corporation did not submit the Data Collection Form for the year ended December 31, 2021 to the OMB in a timely manner as required by Uniform Guidance section 2 CFR 200.512. Criteria Uniform Guidance section 2 CFR 200.512 requires that Data Collection Form (SF-SAC) be submitted to the Office of Managements and Budget (OMB) within the earlier of 30 days after the date of the auditor's report, or nine months after the end of the audit period. Effect or Potential Effect The Corporation is not in compliance with Uniform Guidance. Cause The Owner and Management Agent had a change in auditors and did not provide financial information in a timely manner. Identification as a Repeat Finding 2020-002 Recommendation The Corporation should file the December 31, 2021 financial statements as soon as possible and should ensure the annual financial report is filed within 30 days after the date of the auditor's report and within nine months of fiscal year end. Auditor Noncompliance Code: Z - Other Finding Resolution Status Open. Reporting Views of Responsible Officials Management will make efforts to submit the Data Collection Form more timely going forward.
Finding 2021-003
Condition/Context At December 31, 2021, deposits to the reserve for replacements account in a cumulative amount of $3,305 have not been made. Criteria Pursuant to Section 5(a) of the Regulatory Agreement, the Corporation shall establish and maintain a reserve fund for replacements and deposit an amount equal to $1,377 per month unless a different date or amount is approved in writing by HUD. The Corporation failed to make the required deposits to the reserve for replacements fund. Effect or Potential Effect The Corporation is not in compliance with the Regulatory Agreement. Cause Due to operating cash flow shortages, the required monthly deposits to the reserve for replacements are not being made. Identification as a Repeat Finding 2020-003 Recommendation Management should transfer excess funds from the operating account to the reserve for replacements account and continue to work toward bringing the delinquent accounts current. Questioned Costs $3,305 Auditor Noncompliance Code: N - Reserve for Replacements Deposits Finding Resolution Status Open. Reporting Views of Responsible Officials Management will transfer excess funds from the operating account to the reserve for replacements account to catch up delinquency. Additionally, management will be sure to make all deposits going forward.