Accounting Policies: The schedule of expenditures of federal awards is prepared on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Corporation has elected to not use the 10% de minimis cost rate.
Assistance Listing (Federal award identification number and year): Section 8 Housing Assistance Payments Program Assistance Listing No. 14.195 (FL29-M000-038 and 1981)
Auditor non-compliance code: Z - Other
Finding resolution status: Cleared
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: No
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition #2024-001: The Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2023 was not submitted to the federal audit clearinghouse in the required timeframe.
Criteria: Pursuant to the Uniform Guidance, the Company is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period.
Effect: The Company is not in compliance with Uniform Guidance.
Cause: The Company did not file the data collection form for the year ended December 31, 2023
within 30 calendar days after receipt of the auditor's report.
Recommendation: The Company should submit the Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2023 as soon as practical.
Management's response: Agree. Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2023 was submitted to the federal audit clearinghouse on May 13, 2024.
Assistance Listing (Federal award identification number and year): Section 8 Housing Assistance Payments Program Assistance Listing No. 14.195 (FL29-M000-038 and 1981)
Auditor non-compliance code: R - Section 8 Program Administration
Finding resolution status: Cleared
Universe population size: 73 resident files
Sample size information: 8 resident files
Statistically valid sample: Yes
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition #2024-002: During the period January 1, 2024 through December 12, 2024 (before sale), 4 of the 8 resident files selected for testing under the HUD Consolidated Audit Guide could not be obtained.
Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Company must certify and recertify residents and update other applicable forms in accordance with HUD regulations and contractual requirements.
Effect: The Company is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Current, future, and potentially prior funding under the HAP Contract could be impacted as a result of these resident files.
Cause: The Property was sold on December 13, 2024. After the sale was completed, the Agent no longer had access to the resident files.
Recommendation: The Agent should request the missing resident files from the new owners.
Management's response: The Agent concurs with the recommendation. The Agent had made multiple attempts to obtain the resident files from the new owners, but the Agent has been unable to obtain the resident files. No further action is required due to the sale of the Property.
Assistance Listing (Federal award identification number and year): Section 8 Housing Assistance Payments Program Assistance Listing No. 14.195 (FL29-M000-038 and 1981)
Auditor non-compliance code: Z - Other
Finding resolution status: Cleared
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: No
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition #2024-001: The Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2023 was not submitted to the federal audit clearinghouse in the required timeframe.
Criteria: Pursuant to the Uniform Guidance, the Company is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period.
Effect: The Company is not in compliance with Uniform Guidance.
Cause: The Company did not file the data collection form for the year ended December 31, 2023
within 30 calendar days after receipt of the auditor's report.
Recommendation: The Company should submit the Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2023 as soon as practical.
Management's response: Agree. Form SF-SAC Single Audit Data Collection Form for the year ended December 31, 2023 was submitted to the federal audit clearinghouse on May 13, 2024.
Assistance Listing (Federal award identification number and year): Section 8 Housing Assistance Payments Program Assistance Listing No. 14.195 (FL29-M000-038 and 1981)
Auditor non-compliance code: R - Section 8 Program Administration
Finding resolution status: Cleared
Universe population size: 73 resident files
Sample size information: 8 resident files
Statistically valid sample: Yes
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition #2024-002: During the period January 1, 2024 through December 12, 2024 (before sale), 4 of the 8 resident files selected for testing under the HUD Consolidated Audit Guide could not be obtained.
Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Company must certify and recertify residents and update other applicable forms in accordance with HUD regulations and contractual requirements.
Effect: The Company is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Current, future, and potentially prior funding under the HAP Contract could be impacted as a result of these resident files.
Cause: The Property was sold on December 13, 2024. After the sale was completed, the Agent no longer had access to the resident files.
Recommendation: The Agent should request the missing resident files from the new owners.
Management's response: The Agent concurs with the recommendation. The Agent had made multiple attempts to obtain the resident files from the new owners, but the Agent has been unable to obtain the resident files. No further action is required due to the sale of the Property.