FAC Explorer

Audit 353292

FY End
2024-03-31
Total Expended
$1.67M
Findings
6
Programs
1
Organization: Independence Square Housing Corporation, Inc. (CA)
Year: 2024 Accepted: 2025-04-10
Auditor: Cliftonlarsonallenllp

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
554629 2024-001 Significant Deficiency - E
554630 2024-002 Significant Deficiency - E
554631 2024-003 Significant Deficiency - C
1131071 2024-001 Significant Deficiency - E
1131072 2024-002 Significant Deficiency - E
1131073 2024-003 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
14.195 Project-Based Rental Assistance (pbra) $1.67M Yes 3

Contacts

Name Title Type
MBWYANV9MWC8 Marsha Larkin Marani Auditee
8317246396 Autumn Rossi 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, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Independence Square Housing Corporation, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Independence Square Housing Corporation, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Independence Square Housing Corporation, Inc. under programs of the federal government for the year ended March 31, 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 Independence Square Housing Corporation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Independence Square Housing Corporation, Inc.

Finding Details

Finding 2024-001
Award Period: April 1, 2023, to March 31, 2024 Compliance Requirement Affected: Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: According to §200.303 Internal Controls of 2 CFR Part 200, the non‐Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Income thresholds, on HUD-50059 tenant recertification forms, were not properly updated to the applicable period, using available income limits published by HUD for the County of Santa Cruz. Questioned costs: None noted. Context: A nonstatistical sample of 12 out of 100 tenant files were selected for testing for the Section 8 Housing Assistance Payments Program. The discrepancy, in the maximum income limit, was identified during the auditor's testing of tenant eligibility to participate in the affordable housing program. Cause: Management oversight on properly updating the income limit thresholds. Effect: Noncompliance results in possible exclusion of eligible applicants as the income limits increased from the income limits used.
Finding 2024-002
Award Period: April 1, 2023, to March 31, 2024 Compliance Requirement Affected: Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: According to §200.303 Internal Controls of 2 CFR Part 200, the non‐Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Initial certification and/or recertification HUD-50059 tenant eligibility forms lacked proper review by a management agent or an acting management agent. Questioned costs: None noted. Context: A nonstatistical sample of 12 out of 100 tenant files were selected for testing for the Section 8 Housing Assistance Payments Program. The lack of proper review of tenant certification and/or tenant recertification forms was identified during the auditor's testing of tenant eligibility. Cause: Lack of a management agent or acting management agent in place at the time of tenant certification or recertification. Effect: Noncompliance results in the potential for mathematical errors in accuracy of calculation of tenant rent portion or identification of proper income limit thresholds (see finding 2024-001).
Finding 2024-003
Award Period: April 1, 2023, to March 31, 2024 Compliance Requirement Affected: Cash Management Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: According to §200.303 Internal Controls of 2 CFR Part 200, the non‐Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: HUD Housing Assistance Payment forms lacked proper review by a management agent or an acting management agent. Questioned costs: None noted. Context: A nonstatistical sample of 3 out of 12 HUD Housing Assistance Payment forms were selected for testing for the Section 8 Housing Assistance Payments Program. The lack of proper review of HUD Housing Assistance Payment forms was identified during the auditor's testing of cash management. Cause: Lack of a management agent or acting management agent in place at the time of preparing HUD Housing Assistance Payment forms. Effect: Noncompliance results in the potential for mathematical errors in accuracy of calculation of request for payment on the HUD Housing Assistance Payment forms.
Finding 2024-001
Award Period: April 1, 2023, to March 31, 2024 Compliance Requirement Affected: Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: According to §200.303 Internal Controls of 2 CFR Part 200, the non‐Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Income thresholds, on HUD-50059 tenant recertification forms, were not properly updated to the applicable period, using available income limits published by HUD for the County of Santa Cruz. Questioned costs: None noted. Context: A nonstatistical sample of 12 out of 100 tenant files were selected for testing for the Section 8 Housing Assistance Payments Program. The discrepancy, in the maximum income limit, was identified during the auditor's testing of tenant eligibility to participate in the affordable housing program. Cause: Management oversight on properly updating the income limit thresholds. Effect: Noncompliance results in possible exclusion of eligible applicants as the income limits increased from the income limits used.
Finding 2024-002
Award Period: April 1, 2023, to March 31, 2024 Compliance Requirement Affected: Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: According to §200.303 Internal Controls of 2 CFR Part 200, the non‐Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Initial certification and/or recertification HUD-50059 tenant eligibility forms lacked proper review by a management agent or an acting management agent. Questioned costs: None noted. Context: A nonstatistical sample of 12 out of 100 tenant files were selected for testing for the Section 8 Housing Assistance Payments Program. The lack of proper review of tenant certification and/or tenant recertification forms was identified during the auditor's testing of tenant eligibility. Cause: Lack of a management agent or acting management agent in place at the time of tenant certification or recertification. Effect: Noncompliance results in the potential for mathematical errors in accuracy of calculation of tenant rent portion or identification of proper income limit thresholds (see finding 2024-001).
Finding 2024-003
Award Period: April 1, 2023, to March 31, 2024 Compliance Requirement Affected: Cash Management Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: According to §200.303 Internal Controls of 2 CFR Part 200, the non‐Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: HUD Housing Assistance Payment forms lacked proper review by a management agent or an acting management agent. Questioned costs: None noted. Context: A nonstatistical sample of 3 out of 12 HUD Housing Assistance Payment forms were selected for testing for the Section 8 Housing Assistance Payments Program. The lack of proper review of HUD Housing Assistance Payment forms was identified during the auditor's testing of cash management. Cause: Lack of a management agent or acting management agent in place at the time of preparing HUD Housing Assistance Payment forms. Effect: Noncompliance results in the potential for mathematical errors in accuracy of calculation of request for payment on the HUD Housing Assistance Payment forms.