FAC Explorer

Audit 353337

FY End
2024-12-31
Total Expended
$1.04M
Findings
4
Programs
2
Organization: Tri-County Senior Citizens and Housing, Inc. (CO)
Year: 2024 Accepted: 2025-04-10
Auditor: Wall Smith Bateman INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
554718 2024-002 Significant Deficiency Yes CELN
554719 2024-003 Material Weakness - N
1131160 2024-002 Significant Deficiency Yes CELN
1131161 2024-003 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.182 Lower Income Housing Assistance Program_section 8 New Construction/substantial Rehabilitation $839,905 Yes 2
14.195 Project-Based Rental Assistance (pbra) $197,772 - 0

Contacts

Name Title Type
MTKBTR5F8FM9 Monica Wolfe Auditee
7198525778 Kimberley Temple 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. Tri-County Senior Citizens and Housing, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance as they did not allocate any indirect costs for the year ended December 31, 2024. In addition, Tri-Country Senior Citizens and Housing, Inc. did not pass-through federal funds to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Tri-County Senior Citizens and Housing, Inc., under programs of the federal government for the year ended December 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 Tri-County Senior Citizens and Housing, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Tri-County Senior Citizens and Housing, Inc.
Title: LOWER INCOME HOUSING ASSISTANCE PROGRAM - SECTION 8 NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION 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. Tri-County Senior Citizens and Housing, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance as they did not allocate any indirect costs for the year ended December 31, 2024. In addition, Tri-Country Senior Citizens and Housing, Inc. did not pass-through federal funds to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost. The Lower Income Housing Assistance Program- Section 8 New Construction and Substantial Rehabilitation loan funds are administered by the the U.S. Department of Housing and Urban Development. The loans are payable by Tri-County Senior Citizens and Housing, Inc. The outstanding loan balances at December 31, 2024 are included in the financial statements. The detail of loans outstanding at the beginning and end of the year are described below and in Note 6 of the Notes to the Financial Statements.

Finding Details

Finding 2024-002
Finding 2024-002: Lower Income Housing Assistance Program - Section 8 New Construction and Substantial Rehabilitation Assistance Listing Number: 14.182 U.S. Department of Housing and Urban Development (Repeat of Finding 2023-002 and 2022-002) Compliance Requirements: Cash Management, Eligibility, Reporting, Special Tests and Provisions Type of finding: Internal Control Over Compliance (significant deficiency) Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require that the non-Federal entity 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 (2 CFR 200.303(a)). Condition: The Organization has not implemented a review or monitoring process to ensure propriety in eligibility determinations, tenant lease agreements, housing assistance payment requests, and return of funds for vacant units and rent adjustments to contract rent included on the monthly Housing Assistance Payment vouchers. Cause: The compliance responsibilities of the Organization are performed by one person which has made it difficult to establish a proper review process over cash management, eligibility, reporting, and special tests and provisions requirements. Effect: Noncompliance with the Lower Income Housing Assistance Program - Section 8 New Construction and Substantial Rehabilitation requirements may exist and not be detected by the Organization. Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to ensure a review process is established through adequate segregation of duties. The Organization should consider assessing and realigning the duties and responsibilities of administrative staff allowing the administrator to act in a more supervisory position. Grantee’s Response: See corrective action plan.
Finding 2024-003
Finding 2024-003: Lower Income Housing Assistance Program - Section 8 New Construction and Substantial Rehabilitation Assistance Listing Number: 14.182 U.S. Department of Housing and Urban Development Compliance Requirements: Special Tests and Provisions Type of finding: Internal Control (material weakness) and Compliance (material noncompliance) Criteria: Mortgage Restructuring Loan terms require an annual payment of 85% of restricted surplus cash to be paid on the note. Condition: The Organization did not make the required $45,194 payment on the Mortgage Restructuring Loan in 2024. Cause: The Organization has not established a monitoring process to ensure that required payments are made in accordance with the terms of the loan. Effect: Noncompliance with the Mortgage Restructuring Loan payment terms. Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to establish a monitoring process to ensure compliance with Mortgage Restructuring Loan terms and conditions. Grantee’s Response: See corrective action plan.
Finding 2024-002
Finding 2024-002: Lower Income Housing Assistance Program - Section 8 New Construction and Substantial Rehabilitation Assistance Listing Number: 14.182 U.S. Department of Housing and Urban Development (Repeat of Finding 2023-002 and 2022-002) Compliance Requirements: Cash Management, Eligibility, Reporting, Special Tests and Provisions Type of finding: Internal Control Over Compliance (significant deficiency) Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require that the non-Federal entity 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 (2 CFR 200.303(a)). Condition: The Organization has not implemented a review or monitoring process to ensure propriety in eligibility determinations, tenant lease agreements, housing assistance payment requests, and return of funds for vacant units and rent adjustments to contract rent included on the monthly Housing Assistance Payment vouchers. Cause: The compliance responsibilities of the Organization are performed by one person which has made it difficult to establish a proper review process over cash management, eligibility, reporting, and special tests and provisions requirements. Effect: Noncompliance with the Lower Income Housing Assistance Program - Section 8 New Construction and Substantial Rehabilitation requirements may exist and not be detected by the Organization. Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to ensure a review process is established through adequate segregation of duties. The Organization should consider assessing and realigning the duties and responsibilities of administrative staff allowing the administrator to act in a more supervisory position. Grantee’s Response: See corrective action plan.
Finding 2024-003
Finding 2024-003: Lower Income Housing Assistance Program - Section 8 New Construction and Substantial Rehabilitation Assistance Listing Number: 14.182 U.S. Department of Housing and Urban Development Compliance Requirements: Special Tests and Provisions Type of finding: Internal Control (material weakness) and Compliance (material noncompliance) Criteria: Mortgage Restructuring Loan terms require an annual payment of 85% of restricted surplus cash to be paid on the note. Condition: The Organization did not make the required $45,194 payment on the Mortgage Restructuring Loan in 2024. Cause: The Organization has not established a monitoring process to ensure that required payments are made in accordance with the terms of the loan. Effect: Noncompliance with the Mortgage Restructuring Loan payment terms. Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to establish a monitoring process to ensure compliance with Mortgage Restructuring Loan terms and conditions. Grantee’s Response: See corrective action plan.