FAC Explorer

Audit 356309

FY End
2023-06-30
Total Expended
$4.90M
Findings
8
Programs
4
Organization: The Pines Housing, Inc. (OR)
Year: 2023 Accepted: 2025-05-14
Auditor: Novogradac & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
560404 2023-002 Significant Deficiency - E
560405 2023-002 Significant Deficiency - E
560406 2023-003 Significant Deficiency - E
560407 2023-003 Significant Deficiency - E
1136846 2023-002 Significant Deficiency - E
1136847 2023-002 Significant Deficiency - E
1136848 2023-003 Significant Deficiency - E
1136849 2023-003 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.U01 Low Income Housing Preservation and Resident Homeownership Act of 1990 - Capital Grant $2.25M Yes 2
14.135 Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate $1.82M Yes 2
14.195 Project-Based Rental Assistance (pbra) $428,547 - 0
14.239 Home Investment Partnerships Program $400,000 - 0

Contacts

Name Title Type
ZJ55GKXCCKA5 Alex Chester Auditee
5035480226 David Conway Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations wherein certain types of expenditures are not allowed. Assistance Listing numbers (“AL No.”) are provided when available. De Minimis Rate Used: N Rate Explanation: The costs of providing program services and other activities have been summarized on a functional basis in the statements of activities. Accordingly, certain costs have been allocated among program services, administrative and support, and fundraising services benefited. Such allocations are determined by management on an equitable basis. The financial statements report certain categories of expenses that are attributable to more than one program or supporting services of the Organization. Administrative and financial expenses have been allocated to General and Administrative. Utilities, operating and maintenance, taxes and insurance, and depreciation have been allocated to Program Services, being related to the entity’s property not-for profit purpose. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the expenditures of The Pines Housing, Inc. (an Oregon non-profit public benefit Organization) under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. For purposes of the Schedule, federal awards include all sub awards to the Organization by nonfederal organizations pursuant to federal grants, contracts and similar agreements.
Title: Outstanding federal loans Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations wherein certain types of expenditures are not allowed. Assistance Listing numbers (“AL No.”) are provided when available. De Minimis Rate Used: N Rate Explanation: The costs of providing program services and other activities have been summarized on a functional basis in the statements of activities. Accordingly, certain costs have been allocated among program services, administrative and support, and fundraising services benefited. Such allocations are determined by management on an equitable basis. The financial statements report certain categories of expenses that are attributable to more than one program or supporting services of the Organization. Administrative and financial expenses have been allocated to General and Administrative. Utilities, operating and maintenance, taxes and insurance, and depreciation have been allocated to Program Services, being related to the entity’s property not-for profit purpose. The following represents the amount of outstanding loans identified by AL No. The Organization has received a loan funded by programs of U.S. Department of Housing and Urban Development. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Organization received no additional loans during the year ended June 30, 2023. The loan outstanding at June 30, 2023 consists of: See the Notes to the SEFA for chart/table

Finding Details

Finding 2023-002
Finding No. 2023-002 Condition – As of December 13, 2024, management was unable to provide tenant income documents for 2 tenant files of 7 tenant files sampled out of the population (66 total tenant files). Management was unable to provide tenant security deposit documents for all 3 move-ins and move-outs sampled out of the population (9 total move-ins and 13 total move-outs during the audit period). Criteria – Occupancy personnel are expected to have a strong knowledge of the various compliance requirements regarding tenant eligibility and tenant security deposit as explained in the HUD regulatory agreement. Controls should be in place to ensure noncompliance is detected and corrected on a timely basis. Cause – The system of quality review that was in place was not sufficient to detect all instances of noncompliance with file documentation. Effect – There is a possibility that, under the HUD regulatory agreement, HUD may invoke any remedies available by law to redress the breach or compel compliance by the Organization with the tenant file requirements. Recommendation – We recommend that control systems are put in place to ensure there are regular reviews of tenant files to enable management to identify deficiencies and provide training, guidance, and procedures to eliminate errors and issues of noncompliance in the future. Auditor noncompliance code – S – Internal Control Deficiencies Reporting views of responsible officials - Management understands the importance of the matter and the issues that arise if tenant files are not properly maintained. The circumstances surrounding the documents that were not provided were reviewed, and a procedural change has been implemented. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations – Agree Completion date or proposed completion date – December 18, 2024 Actions taken or planned on the finding – The Organization will implement procedures to ensure the management agent maintains complete tenant files.
Finding 2023-002
Finding No. 2023-002 Condition – As of December 13, 2024, management was unable to provide tenant income documents for 2 tenant files of 7 tenant files sampled out of the population (66 total tenant files). Management was unable to provide tenant security deposit documents for all 3 move-ins and move-outs sampled out of the population (9 total move-ins and 13 total move-outs during the audit period). Criteria – Occupancy personnel are expected to have a strong knowledge of the various compliance requirements regarding tenant eligibility and tenant security deposit as explained in the HUD regulatory agreement. Controls should be in place to ensure noncompliance is detected and corrected on a timely basis. Cause – The system of quality review that was in place was not sufficient to detect all instances of noncompliance with file documentation. Effect – There is a possibility that, under the HUD regulatory agreement, HUD may invoke any remedies available by law to redress the breach or compel compliance by the Organization with the tenant file requirements. Recommendation – We recommend that control systems are put in place to ensure there are regular reviews of tenant files to enable management to identify deficiencies and provide training, guidance, and procedures to eliminate errors and issues of noncompliance in the future. Auditor noncompliance code – S – Internal Control Deficiencies Reporting views of responsible officials - Management understands the importance of the matter and the issues that arise if tenant files are not properly maintained. The circumstances surrounding the documents that were not provided were reviewed, and a procedural change has been implemented. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations – Agree Completion date or proposed completion date – December 18, 2024 Actions taken or planned on the finding – The Organization will implement procedures to ensure the management agent maintains complete tenant files.
Finding 2023-003
Finding No. 2023-003 Condition – In September 2023, HUD suspended its HAP subsidy to the Organization due to noncompliance regarding the tenant recertifications requirements under the HAP Contract. Criteria – Occupancy personnel are expected to have a strong knowledge of the various compliance requirements regarding tenant recertifications. Controls should be in place to ensure noncompliance is detected and corrected on a timely basis. Cause – The system of quality review that was in place was not sufficient to detect all instances of noncompliance with file documentation. Effect – There is a possibility that, under the HAP Contract, HUD may invoke any remedies available by law to redress the breach or compel compliance by the Organization with the tenant recertification requirements. Recommendation – We recommend that control systems are put in place to ensure there are regular reviews of tenant files to enable management to identify deficiencies and provide training, guidance, and procedures to eliminate errors and issues of noncompliance in the future. Auditor noncompliance code – S – Internal Control Deficiencies Reporting views of responsible officials - Management understands the importance of the matter and the issues that arise if tenant recertifications are not completed. The circumstances surrounding the noncompliance related to tenant recertifications were reviewed, and a procedural change has been implemented. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations – Agree Completion date or proposed completion date – December 18, 2024 Actions taken or planned on the finding – The Organization will implement procedures to ensure the management agent complies with the tenant recertification requirements.
Finding 2023-003
Finding No. 2023-003 Condition – In September 2023, HUD suspended its HAP subsidy to the Organization due to noncompliance regarding the tenant recertifications requirements under the HAP Contract. Criteria – Occupancy personnel are expected to have a strong knowledge of the various compliance requirements regarding tenant recertifications. Controls should be in place to ensure noncompliance is detected and corrected on a timely basis. Cause – The system of quality review that was in place was not sufficient to detect all instances of noncompliance with file documentation. Effect – There is a possibility that, under the HAP Contract, HUD may invoke any remedies available by law to redress the breach or compel compliance by the Organization with the tenant recertification requirements. Recommendation – We recommend that control systems are put in place to ensure there are regular reviews of tenant files to enable management to identify deficiencies and provide training, guidance, and procedures to eliminate errors and issues of noncompliance in the future. Auditor noncompliance code – S – Internal Control Deficiencies Reporting views of responsible officials - Management understands the importance of the matter and the issues that arise if tenant recertifications are not completed. The circumstances surrounding the noncompliance related to tenant recertifications were reviewed, and a procedural change has been implemented. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations – Agree Completion date or proposed completion date – December 18, 2024 Actions taken or planned on the finding – The Organization will implement procedures to ensure the management agent complies with the tenant recertification requirements.
Finding 2023-002
Finding No. 2023-002 Condition – As of December 13, 2024, management was unable to provide tenant income documents for 2 tenant files of 7 tenant files sampled out of the population (66 total tenant files). Management was unable to provide tenant security deposit documents for all 3 move-ins and move-outs sampled out of the population (9 total move-ins and 13 total move-outs during the audit period). Criteria – Occupancy personnel are expected to have a strong knowledge of the various compliance requirements regarding tenant eligibility and tenant security deposit as explained in the HUD regulatory agreement. Controls should be in place to ensure noncompliance is detected and corrected on a timely basis. Cause – The system of quality review that was in place was not sufficient to detect all instances of noncompliance with file documentation. Effect – There is a possibility that, under the HUD regulatory agreement, HUD may invoke any remedies available by law to redress the breach or compel compliance by the Organization with the tenant file requirements. Recommendation – We recommend that control systems are put in place to ensure there are regular reviews of tenant files to enable management to identify deficiencies and provide training, guidance, and procedures to eliminate errors and issues of noncompliance in the future. Auditor noncompliance code – S – Internal Control Deficiencies Reporting views of responsible officials - Management understands the importance of the matter and the issues that arise if tenant files are not properly maintained. The circumstances surrounding the documents that were not provided were reviewed, and a procedural change has been implemented. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations – Agree Completion date or proposed completion date – December 18, 2024 Actions taken or planned on the finding – The Organization will implement procedures to ensure the management agent maintains complete tenant files.
Finding 2023-002
Finding No. 2023-002 Condition – As of December 13, 2024, management was unable to provide tenant income documents for 2 tenant files of 7 tenant files sampled out of the population (66 total tenant files). Management was unable to provide tenant security deposit documents for all 3 move-ins and move-outs sampled out of the population (9 total move-ins and 13 total move-outs during the audit period). Criteria – Occupancy personnel are expected to have a strong knowledge of the various compliance requirements regarding tenant eligibility and tenant security deposit as explained in the HUD regulatory agreement. Controls should be in place to ensure noncompliance is detected and corrected on a timely basis. Cause – The system of quality review that was in place was not sufficient to detect all instances of noncompliance with file documentation. Effect – There is a possibility that, under the HUD regulatory agreement, HUD may invoke any remedies available by law to redress the breach or compel compliance by the Organization with the tenant file requirements. Recommendation – We recommend that control systems are put in place to ensure there are regular reviews of tenant files to enable management to identify deficiencies and provide training, guidance, and procedures to eliminate errors and issues of noncompliance in the future. Auditor noncompliance code – S – Internal Control Deficiencies Reporting views of responsible officials - Management understands the importance of the matter and the issues that arise if tenant files are not properly maintained. The circumstances surrounding the documents that were not provided were reviewed, and a procedural change has been implemented. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations – Agree Completion date or proposed completion date – December 18, 2024 Actions taken or planned on the finding – The Organization will implement procedures to ensure the management agent maintains complete tenant files.
Finding 2023-003
Finding No. 2023-003 Condition – In September 2023, HUD suspended its HAP subsidy to the Organization due to noncompliance regarding the tenant recertifications requirements under the HAP Contract. Criteria – Occupancy personnel are expected to have a strong knowledge of the various compliance requirements regarding tenant recertifications. Controls should be in place to ensure noncompliance is detected and corrected on a timely basis. Cause – The system of quality review that was in place was not sufficient to detect all instances of noncompliance with file documentation. Effect – There is a possibility that, under the HAP Contract, HUD may invoke any remedies available by law to redress the breach or compel compliance by the Organization with the tenant recertification requirements. Recommendation – We recommend that control systems are put in place to ensure there are regular reviews of tenant files to enable management to identify deficiencies and provide training, guidance, and procedures to eliminate errors and issues of noncompliance in the future. Auditor noncompliance code – S – Internal Control Deficiencies Reporting views of responsible officials - Management understands the importance of the matter and the issues that arise if tenant recertifications are not completed. The circumstances surrounding the noncompliance related to tenant recertifications were reviewed, and a procedural change has been implemented. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations – Agree Completion date or proposed completion date – December 18, 2024 Actions taken or planned on the finding – The Organization will implement procedures to ensure the management agent complies with the tenant recertification requirements.
Finding 2023-003
Finding No. 2023-003 Condition – In September 2023, HUD suspended its HAP subsidy to the Organization due to noncompliance regarding the tenant recertifications requirements under the HAP Contract. Criteria – Occupancy personnel are expected to have a strong knowledge of the various compliance requirements regarding tenant recertifications. Controls should be in place to ensure noncompliance is detected and corrected on a timely basis. Cause – The system of quality review that was in place was not sufficient to detect all instances of noncompliance with file documentation. Effect – There is a possibility that, under the HAP Contract, HUD may invoke any remedies available by law to redress the breach or compel compliance by the Organization with the tenant recertification requirements. Recommendation – We recommend that control systems are put in place to ensure there are regular reviews of tenant files to enable management to identify deficiencies and provide training, guidance, and procedures to eliminate errors and issues of noncompliance in the future. Auditor noncompliance code – S – Internal Control Deficiencies Reporting views of responsible officials - Management understands the importance of the matter and the issues that arise if tenant recertifications are not completed. The circumstances surrounding the noncompliance related to tenant recertifications were reviewed, and a procedural change has been implemented. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations – Agree Completion date or proposed completion date – December 18, 2024 Actions taken or planned on the finding – The Organization will implement procedures to ensure the management agent complies with the tenant recertification requirements.