FAC Explorer

Audit 34964

FY End
2022-03-31
Total Expended
$1.23M
Findings
2
Programs
3
Organization: Morse Elderly Housing Corporation (FL)
Year: 2022 Accepted: 2022-12-12
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
37017 2022-001 - - N
613459 2022-001 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $1.08M Yes 0
14.157 Supportive Housing for the Elderly - Prac $140,526 Yes 1
14.157 Supportive Housing for the Elderly - Covid-19 Csp Prac $1,092 Yes 0

Contacts

Name Title Type
L3TRWMP1GK49 Irene Phillips Auditee
9548359200 Jennifer R. Koffman Auditor
No contacts on file

Notes to SEFA

Title: NOTE C - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal award activity of Morse Elderly Housing Corporation, HUD Project No. 064-EE066, and 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 Morse Elderly Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Morse Elderly Housing Corporation. 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. De Minimis Rate Used: N Rate Explanation: Morse Elderly Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Morse Elderly Housing Corporation has received a HUD capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Morse Elderly Housing Corporation received no additional loans during the year. The balance of the capital advance outstanding as of March 31, 2022 was $1,083,400.

Finding Details

Finding 2022-001
FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total rent revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed within 120 days of the PRAC expiration. Statement of Condition: The Project did not complete the renewal process within 120 days of the contract expiration. Cause: The Project did not follow HUD regulations for a timely contract renewal. Effect or Potential Effect: The Project is not in compliance with HUD regulations for a timely renewal of the PRAC contract resulting in delayed receipt of HAP funds. Auditor Non-Compliance Code: R ? Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should comply with HUD regulations for a timely renewal of the PRAC contract to ensure no interruption in funding. Response Indicator: Agree. Completion Date: 4/14/2022 Response: Management has implemented new procedures for PRAC contract renewals and is in the process of hiring a compliance coordinator to assist with ensuring all HUD regulations are met timely.
Finding 2022-001
FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total rent revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed within 120 days of the PRAC expiration. Statement of Condition: The Project did not complete the renewal process within 120 days of the contract expiration. Cause: The Project did not follow HUD regulations for a timely contract renewal. Effect or Potential Effect: The Project is not in compliance with HUD regulations for a timely renewal of the PRAC contract resulting in delayed receipt of HAP funds. Auditor Non-Compliance Code: R ? Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should comply with HUD regulations for a timely renewal of the PRAC contract to ensure no interruption in funding. Response Indicator: Agree. Completion Date: 4/14/2022 Response: Management has implemented new procedures for PRAC contract renewals and is in the process of hiring a compliance coordinator to assist with ensuring all HUD regulations are met timely.