S3800-010 Finding Reference Number – 2024-001
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – Resolved
S3800-017 Information on Universe Population Size – 19 PRAC units
S3800-018 Sample Size Information – 5 tenant files. Errors were found on 2 out of the 5 tenants tested.
S3800-019 Identification of Repeat Finding and Finding Reference Number – 2023-001
S3800-020 Criteria –
Per HUD Handbook 4350.3 Rev-1: Owners are responsible for obtaining the original signature of the head of household, spouse, any individual listed as co-head and all other adult members of the household on the HUD model lease and required lease attachments and addendums. In addition, owners are responsible for obtaining a signed declaration of citizenship or eligible noncitizen/immigration status. There are also the optional following documents Owners are responsible for providing applicants the opportunity to complete: (1) form HUD-92006, Supplement to Application for Federally Assisted Housing and (2) form HUD-27061-H, Race and Ethnic Data Reporting Form.
S3800-030 Statement of Condition –
During our audit, we noted one instance where management did not obtain the following documents signed by the head of household during the move-in process: (1) HOME Program Lease Addendum, (2) WA State Commerce HOME Student Status Form.
In addition, during our audit, we noted one instance where management did not obtain the following document signed by the head of household during the move-in process: (1) Form HUD-50059.
S3800-032 Cause –
Management failed to obtain the appropriate signatures and maintain the original signed forms in the tenant’s file at the project site.
S3800-033 Effect or Potential Effect –
The procedures for maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3. This could result in units being rented to ineligible tenants or errors in rent subsidies paid by HUD.
S3800-035 Auditor Non-Compliance Code – R (Section 8 Program Administration)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 2 out of the 5 tenant files did not contain the required completed forms. This was not a statistically valid sample.
S3800-080 Recommendation –
We recommend Sessions Village 202 obtain the missing signed documents if the tenant still resides at the project. In addition, we recommend Sessions Village 202 review all tenant files to ensure all other records are complete.
Also, we recommend staff involved in the tenant move-in process review the requirements and revise their current process and procedures as needed to ensure the appropriate forms are completed correctly and kept in the tenant files going forward. Additional controls could include completing a checklist of required signed forms obtained during the move-in process, or having a second individual check the file for completeness.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
In November 2024, the Property Manager at Sessions Village 202 obtained the missing signed documents for the tenants listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – November 14, 2024
S3800-150 Response –
In November 2024, the Property Manager at Sessions Village 202 obtained the missing signed documents for the tenants listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-160 Contact Person First Name – Ashley
S3800-180 Contact Person Last Name – Healey
S3800-010 Finding Reference Number – 2024-002
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – Resolved
S3800-017 Information on Universe Population Size – N/A
S3800-018 Sample Size Information – N/A
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per the regulatory agreement Section 5(a) for a Project under the ALN 14.157, the Project is required to establish and maintain a reserve fund for replacements in a separate account. In addition, the Corporation is required to deposit an amount equal to $470.72 per month unless a different date or amount is approved in writing by HUD.
S3800-030 Statement of Condition –
During the year ended September 30, 2024, the Corporation underfunded the reserve for replacements by $33.
S3800-032 Cause –
During the year ended September 30, 2024, the individual in charge of making the deposits retired and there was turnover when filling the position. As a result, the new A/P Clerk deposited the incorrect amount into the account for September 2024, in error.
S3800-033 Effect or Potential Effect –
There are less funds available for capital repairs and improvements.
S3800-035 Auditor Non-Compliance Code – N (Reserve for Replacement Deposits)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
In August 2024, no deposit was made into the account. When the correction was made in September 2024, the deposit amount was changed in error for September 2024 from $470.42 to $437.09 due to a notice from the bank management received for a related party.
S3800-080 Recommendation –
We recommend Sessions Village 202 deposit the underfunded amount into the account.
Also, we recommend management of Sessions Village 202 review their internal controls over the reserve for replacements deposit process with the necessary individuals involved in the process to ensure the appropriate deposits are made going forward.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
In November, 2024, the amount was deposited into the account.
The Accountant at Sessions Village 202 will review the process and procedures in place with the new A/P Clerk, and implement controls to ensure the appropriate deposits are made going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – November 30, 2024
S3800-150 Response –
In November, 2024, the amount was deposited into the account.
The Accountant at Sessions Village 202 will review the process and procedures in place with the new A/P Clerk, and implement controls to ensure the appropriate deposits are made going forward.
S3800-010 Finding Reference Number – 2024-003
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – Resolved
S3800-017 Information on Universe Population Size – N/A
S3800-018 Sample Size Information – N/A
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per the regulatory agreement Section 11(f) for a Project under the ALN 14.157, the Project is required to submit the audited financial statements to HUD within 90 days of a Project’s fiscal year end.
S3800-030 Statement of Condition –
Sessions Village 202 did not meet the financial statement filing requirements for the year ended September 30, 2024. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements.
S3800-032 Cause –
Sessions Village 202 was not able to meet the financial statement filing deadline for the year ended September 30, 2024.
S3800-033 Effect or Potential Effect –
HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement.
S3800-035 Auditor Non-Compliance Code – Z (Other)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-080 Recommendation –
We recommend Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
On February 8, 2025, the audit was submitted to HUD through REAC.
Sessions Village 202 will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – February 8, 2025
S3800-150 Response –
On February 8, 2025, the audit was submitted to HUD through REAC.
Sessions Village 202 will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward.
S3800-010 Finding Reference Number – 2024-001
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – Resolved
S3800-017 Information on Universe Population Size – 19 PRAC units
S3800-018 Sample Size Information – 5 tenant files. Errors were found on 2 out of the 5 tenants tested.
S3800-019 Identification of Repeat Finding and Finding Reference Number – 2023-001
S3800-020 Criteria –
Per HUD Handbook 4350.3 Rev-1: Owners are responsible for obtaining the original signature of the head of household, spouse, any individual listed as co-head and all other adult members of the household on the HUD model lease and required lease attachments and addendums. In addition, owners are responsible for obtaining a signed declaration of citizenship or eligible noncitizen/immigration status. There are also the optional following documents Owners are responsible for providing applicants the opportunity to complete: (1) form HUD-92006, Supplement to Application for Federally Assisted Housing and (2) form HUD-27061-H, Race and Ethnic Data Reporting Form.
S3800-030 Statement of Condition –
During our audit, we noted one instance where management did not obtain the following documents signed by the head of household during the move-in process: (1) HOME Program Lease Addendum, (2) WA State Commerce HOME Student Status Form.
In addition, during our audit, we noted one instance where management did not obtain the following document signed by the head of household during the move-in process: (1) Form HUD-50059.
S3800-032 Cause –
Management failed to obtain the appropriate signatures and maintain the original signed forms in the tenant’s file at the project site.
S3800-033 Effect or Potential Effect –
The procedures for maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3. This could result in units being rented to ineligible tenants or errors in rent subsidies paid by HUD.
S3800-035 Auditor Non-Compliance Code – R (Section 8 Program Administration)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 2 out of the 5 tenant files did not contain the required completed forms. This was not a statistically valid sample.
S3800-080 Recommendation –
We recommend Sessions Village 202 obtain the missing signed documents if the tenant still resides at the project. In addition, we recommend Sessions Village 202 review all tenant files to ensure all other records are complete.
Also, we recommend staff involved in the tenant move-in process review the requirements and revise their current process and procedures as needed to ensure the appropriate forms are completed correctly and kept in the tenant files going forward. Additional controls could include completing a checklist of required signed forms obtained during the move-in process, or having a second individual check the file for completeness.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
In November 2024, the Property Manager at Sessions Village 202 obtained the missing signed documents for the tenants listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – November 14, 2024
S3800-150 Response –
In November 2024, the Property Manager at Sessions Village 202 obtained the missing signed documents for the tenants listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-160 Contact Person First Name – Ashley
S3800-180 Contact Person Last Name – Healey
S3800-010 Finding Reference Number – 2024-002
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – Resolved
S3800-017 Information on Universe Population Size – N/A
S3800-018 Sample Size Information – N/A
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per the regulatory agreement Section 5(a) for a Project under the ALN 14.157, the Project is required to establish and maintain a reserve fund for replacements in a separate account. In addition, the Corporation is required to deposit an amount equal to $470.72 per month unless a different date or amount is approved in writing by HUD.
S3800-030 Statement of Condition –
During the year ended September 30, 2024, the Corporation underfunded the reserve for replacements by $33.
S3800-032 Cause –
During the year ended September 30, 2024, the individual in charge of making the deposits retired and there was turnover when filling the position. As a result, the new A/P Clerk deposited the incorrect amount into the account for September 2024, in error.
S3800-033 Effect or Potential Effect –
There are less funds available for capital repairs and improvements.
S3800-035 Auditor Non-Compliance Code – N (Reserve for Replacement Deposits)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
In August 2024, no deposit was made into the account. When the correction was made in September 2024, the deposit amount was changed in error for September 2024 from $470.42 to $437.09 due to a notice from the bank management received for a related party.
S3800-080 Recommendation –
We recommend Sessions Village 202 deposit the underfunded amount into the account.
Also, we recommend management of Sessions Village 202 review their internal controls over the reserve for replacements deposit process with the necessary individuals involved in the process to ensure the appropriate deposits are made going forward.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
In November, 2024, the amount was deposited into the account.
The Accountant at Sessions Village 202 will review the process and procedures in place with the new A/P Clerk, and implement controls to ensure the appropriate deposits are made going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – November 30, 2024
S3800-150 Response –
In November, 2024, the amount was deposited into the account.
The Accountant at Sessions Village 202 will review the process and procedures in place with the new A/P Clerk, and implement controls to ensure the appropriate deposits are made going forward.
S3800-010 Finding Reference Number – 2024-003
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – Resolved
S3800-017 Information on Universe Population Size – N/A
S3800-018 Sample Size Information – N/A
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per the regulatory agreement Section 11(f) for a Project under the ALN 14.157, the Project is required to submit the audited financial statements to HUD within 90 days of a Project’s fiscal year end.
S3800-030 Statement of Condition –
Sessions Village 202 did not meet the financial statement filing requirements for the year ended September 30, 2024. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements.
S3800-032 Cause –
Sessions Village 202 was not able to meet the financial statement filing deadline for the year ended September 30, 2024.
S3800-033 Effect or Potential Effect –
HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement.
S3800-035 Auditor Non-Compliance Code – Z (Other)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-080 Recommendation –
We recommend Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
On February 8, 2025, the audit was submitted to HUD through REAC.
Sessions Village 202 will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – February 8, 2025
S3800-150 Response –
On February 8, 2025, the audit was submitted to HUD through REAC.
Sessions Village 202 will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward.
S3800-010 Finding Reference Number – 2024-001
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – Resolved
S3800-017 Information on Universe Population Size – 19 PRAC units
S3800-018 Sample Size Information – 5 tenant files. Errors were found on 2 out of the 5 tenants tested.
S3800-019 Identification of Repeat Finding and Finding Reference Number – 2023-001
S3800-020 Criteria –
Per HUD Handbook 4350.3 Rev-1: Owners are responsible for obtaining the original signature of the head of household, spouse, any individual listed as co-head and all other adult members of the household on the HUD model lease and required lease attachments and addendums. In addition, owners are responsible for obtaining a signed declaration of citizenship or eligible noncitizen/immigration status. There are also the optional following documents Owners are responsible for providing applicants the opportunity to complete: (1) form HUD-92006, Supplement to Application for Federally Assisted Housing and (2) form HUD-27061-H, Race and Ethnic Data Reporting Form.
S3800-030 Statement of Condition –
During our audit, we noted one instance where management did not obtain the following documents signed by the head of household during the move-in process: (1) HOME Program Lease Addendum, (2) WA State Commerce HOME Student Status Form.
In addition, during our audit, we noted one instance where management did not obtain the following document signed by the head of household during the move-in process: (1) Form HUD-50059.
S3800-032 Cause –
Management failed to obtain the appropriate signatures and maintain the original signed forms in the tenant’s file at the project site.
S3800-033 Effect or Potential Effect –
The procedures for maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3. This could result in units being rented to ineligible tenants or errors in rent subsidies paid by HUD.
S3800-035 Auditor Non-Compliance Code – R (Section 8 Program Administration)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 2 out of the 5 tenant files did not contain the required completed forms. This was not a statistically valid sample.
S3800-080 Recommendation –
We recommend Sessions Village 202 obtain the missing signed documents if the tenant still resides at the project. In addition, we recommend Sessions Village 202 review all tenant files to ensure all other records are complete.
Also, we recommend staff involved in the tenant move-in process review the requirements and revise their current process and procedures as needed to ensure the appropriate forms are completed correctly and kept in the tenant files going forward. Additional controls could include completing a checklist of required signed forms obtained during the move-in process, or having a second individual check the file for completeness.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
In November 2024, the Property Manager at Sessions Village 202 obtained the missing signed documents for the tenants listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – November 14, 2024
S3800-150 Response –
In November 2024, the Property Manager at Sessions Village 202 obtained the missing signed documents for the tenants listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-160 Contact Person First Name – Ashley
S3800-180 Contact Person Last Name – Healey
S3800-010 Finding Reference Number – 2024-002
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – Resolved
S3800-017 Information on Universe Population Size – N/A
S3800-018 Sample Size Information – N/A
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per the regulatory agreement Section 5(a) for a Project under the ALN 14.157, the Project is required to establish and maintain a reserve fund for replacements in a separate account. In addition, the Corporation is required to deposit an amount equal to $470.72 per month unless a different date or amount is approved in writing by HUD.
S3800-030 Statement of Condition –
During the year ended September 30, 2024, the Corporation underfunded the reserve for replacements by $33.
S3800-032 Cause –
During the year ended September 30, 2024, the individual in charge of making the deposits retired and there was turnover when filling the position. As a result, the new A/P Clerk deposited the incorrect amount into the account for September 2024, in error.
S3800-033 Effect or Potential Effect –
There are less funds available for capital repairs and improvements.
S3800-035 Auditor Non-Compliance Code – N (Reserve for Replacement Deposits)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
In August 2024, no deposit was made into the account. When the correction was made in September 2024, the deposit amount was changed in error for September 2024 from $470.42 to $437.09 due to a notice from the bank management received for a related party.
S3800-080 Recommendation –
We recommend Sessions Village 202 deposit the underfunded amount into the account.
Also, we recommend management of Sessions Village 202 review their internal controls over the reserve for replacements deposit process with the necessary individuals involved in the process to ensure the appropriate deposits are made going forward.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
In November, 2024, the amount was deposited into the account.
The Accountant at Sessions Village 202 will review the process and procedures in place with the new A/P Clerk, and implement controls to ensure the appropriate deposits are made going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – November 30, 2024
S3800-150 Response –
In November, 2024, the amount was deposited into the account.
The Accountant at Sessions Village 202 will review the process and procedures in place with the new A/P Clerk, and implement controls to ensure the appropriate deposits are made going forward.
S3800-010 Finding Reference Number – 2024-003
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – Resolved
S3800-017 Information on Universe Population Size – N/A
S3800-018 Sample Size Information – N/A
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per the regulatory agreement Section 11(f) for a Project under the ALN 14.157, the Project is required to submit the audited financial statements to HUD within 90 days of a Project’s fiscal year end.
S3800-030 Statement of Condition –
Sessions Village 202 did not meet the financial statement filing requirements for the year ended September 30, 2024. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements.
S3800-032 Cause –
Sessions Village 202 was not able to meet the financial statement filing deadline for the year ended September 30, 2024.
S3800-033 Effect or Potential Effect –
HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement.
S3800-035 Auditor Non-Compliance Code – Z (Other)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-080 Recommendation –
We recommend Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
On February 8, 2025, the audit was submitted to HUD through REAC.
Sessions Village 202 will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – February 8, 2025
S3800-150 Response –
On February 8, 2025, the audit was submitted to HUD through REAC.
Sessions Village 202 will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward.
S3800-010 Finding Reference Number – 2024-001
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – Resolved
S3800-017 Information on Universe Population Size – 19 PRAC units
S3800-018 Sample Size Information – 5 tenant files. Errors were found on 2 out of the 5 tenants tested.
S3800-019 Identification of Repeat Finding and Finding Reference Number – 2023-001
S3800-020 Criteria –
Per HUD Handbook 4350.3 Rev-1: Owners are responsible for obtaining the original signature of the head of household, spouse, any individual listed as co-head and all other adult members of the household on the HUD model lease and required lease attachments and addendums. In addition, owners are responsible for obtaining a signed declaration of citizenship or eligible noncitizen/immigration status. There are also the optional following documents Owners are responsible for providing applicants the opportunity to complete: (1) form HUD-92006, Supplement to Application for Federally Assisted Housing and (2) form HUD-27061-H, Race and Ethnic Data Reporting Form.
S3800-030 Statement of Condition –
During our audit, we noted one instance where management did not obtain the following documents signed by the head of household during the move-in process: (1) HOME Program Lease Addendum, (2) WA State Commerce HOME Student Status Form.
In addition, during our audit, we noted one instance where management did not obtain the following document signed by the head of household during the move-in process: (1) Form HUD-50059.
S3800-032 Cause –
Management failed to obtain the appropriate signatures and maintain the original signed forms in the tenant’s file at the project site.
S3800-033 Effect or Potential Effect –
The procedures for maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3. This could result in units being rented to ineligible tenants or errors in rent subsidies paid by HUD.
S3800-035 Auditor Non-Compliance Code – R (Section 8 Program Administration)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 2 out of the 5 tenant files did not contain the required completed forms. This was not a statistically valid sample.
S3800-080 Recommendation –
We recommend Sessions Village 202 obtain the missing signed documents if the tenant still resides at the project. In addition, we recommend Sessions Village 202 review all tenant files to ensure all other records are complete.
Also, we recommend staff involved in the tenant move-in process review the requirements and revise their current process and procedures as needed to ensure the appropriate forms are completed correctly and kept in the tenant files going forward. Additional controls could include completing a checklist of required signed forms obtained during the move-in process, or having a second individual check the file for completeness.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
In November 2024, the Property Manager at Sessions Village 202 obtained the missing signed documents for the tenants listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – November 14, 2024
S3800-150 Response –
In November 2024, the Property Manager at Sessions Village 202 obtained the missing signed documents for the tenants listed above.
The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-160 Contact Person First Name – Ashley
S3800-180 Contact Person Last Name – Healey
S3800-010 Finding Reference Number – 2024-002
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – Resolved
S3800-017 Information on Universe Population Size – N/A
S3800-018 Sample Size Information – N/A
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per the regulatory agreement Section 5(a) for a Project under the ALN 14.157, the Project is required to establish and maintain a reserve fund for replacements in a separate account. In addition, the Corporation is required to deposit an amount equal to $470.72 per month unless a different date or amount is approved in writing by HUD.
S3800-030 Statement of Condition –
During the year ended September 30, 2024, the Corporation underfunded the reserve for replacements by $33.
S3800-032 Cause –
During the year ended September 30, 2024, the individual in charge of making the deposits retired and there was turnover when filling the position. As a result, the new A/P Clerk deposited the incorrect amount into the account for September 2024, in error.
S3800-033 Effect or Potential Effect –
There are less funds available for capital repairs and improvements.
S3800-035 Auditor Non-Compliance Code – N (Reserve for Replacement Deposits)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-050 Context –
In August 2024, no deposit was made into the account. When the correction was made in September 2024, the deposit amount was changed in error for September 2024 from $470.42 to $437.09 due to a notice from the bank management received for a related party.
S3800-080 Recommendation –
We recommend Sessions Village 202 deposit the underfunded amount into the account.
Also, we recommend management of Sessions Village 202 review their internal controls over the reserve for replacements deposit process with the necessary individuals involved in the process to ensure the appropriate deposits are made going forward.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
In November, 2024, the amount was deposited into the account.
The Accountant at Sessions Village 202 will review the process and procedures in place with the new A/P Clerk, and implement controls to ensure the appropriate deposits are made going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – November 30, 2024
S3800-150 Response –
In November, 2024, the amount was deposited into the account.
The Accountant at Sessions Village 202 will review the process and procedures in place with the new A/P Clerk, and implement controls to ensure the appropriate deposits are made going forward.
S3800-010 Finding Reference Number – 2024-003
S3800-011 Title and CFDA Number of Federal Program –
Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157
S3800-015 Type of Finding – Federal Award Finding; Other Matters
S3800-016 Finding Resolution Status – Resolved
S3800-017 Information on Universe Population Size – N/A
S3800-018 Sample Size Information – N/A
S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A
S3800-020 Criteria –
Per the regulatory agreement Section 11(f) for a Project under the ALN 14.157, the Project is required to submit the audited financial statements to HUD within 90 days of a Project’s fiscal year end.
S3800-030 Statement of Condition –
Sessions Village 202 did not meet the financial statement filing requirements for the year ended September 30, 2024. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements.
S3800-032 Cause –
Sessions Village 202 was not able to meet the financial statement filing deadline for the year ended September 30, 2024.
S3800-033 Effect or Potential Effect –
HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement.
S3800-035 Auditor Non-Compliance Code – Z (Other)
S3800-037 FHA/Contract Number – 171-EE015
S3800-038 Questioned Costs – $0
S3800-040 Questioned Costs – $0
S3800-045 Reporting Views of Responsible Officials –
Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented.
S3800-080 Recommendation –
We recommend Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement.
S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations –
On February 8, 2025, the audit was submitted to HUD through REAC.
Sessions Village 202 will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward.
S3800-130 Response Indicator – Agree
S3800-140 Completion Date – February 8, 2025
S3800-150 Response –
On February 8, 2025, the audit was submitted to HUD through REAC.
Sessions Village 202 will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward.