Audit 357856

FY End
2024-12-31
Total Expended
$9.91M
Findings
2
Programs
2
Year: 2024 Accepted: 2025-06-02
Auditor: Wipfli LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
563596 2024-001 Significant Deficiency - E
1140038 2024-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $9.13M Yes 0
14.195 Section 8 Housing Assistance Payments Program $786,067 Yes 1

Contacts

Name Title Type
CS3XN1G79DF7 Takisha Artis Auditee
8158069990 Alex Pekler Auditor
No contacts on file

Notes to SEFA

Title: Awards for Sub-Recipients Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activityof Naomi and Sylvester Smith Senior Living Center HUD Project No. 071-EE240, under programs of the federalgovernment for the year ended December 31, 2024. The information in this Schedule is presented in accordancewith the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because theSchedule presents only a selected portion of the operations of Naomi and Sylvester Smith Senior Living CenterHUD Project No. 071-EE240, it is not intended to and does not present the financial position, changes in net assetsor cash flows of Naomi and Sylvester Smith Senior Living Center. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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. Pass-through entity identifying numbers are presented where available. The organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization does not have sub-recipients of federal awards.
Title: Loan and Loan Guarantees Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activityof Naomi and Sylvester Smith Senior Living Center HUD Project No. 071-EE240, under programs of the federalgovernment for the year ended December 31, 2024. The information in this Schedule is presented in accordancewith the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because theSchedule presents only a selected portion of the operations of Naomi and Sylvester Smith Senior Living CenterHUD Project No. 071-EE240, it is not intended to and does not present the financial position, changes in net assetsor cash flows of Naomi and Sylvester Smith Senior Living Center. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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. Pass-through entity identifying numbers are presented where available. The organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Naomi and Sylvester Smith Senior Living Center HUD Project No. 071-EE240 did not receive any additional loans orloan guarantees during the year ended December 31, 2024. Capital advance at the end of 2024 were $9,127,500.
Title: Insurance Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activityof Naomi and Sylvester Smith Senior Living Center HUD Project No. 071-EE240, under programs of the federalgovernment for the year ended December 31, 2024. The information in this Schedule is presented in accordancewith the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because theSchedule presents only a selected portion of the operations of Naomi and Sylvester Smith Senior Living CenterHUD Project No. 071-EE240, it is not intended to and does not present the financial position, changes in net assetsor cash flows of Naomi and Sylvester Smith Senior Living Center. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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. Pass-through entity identifying numbers are presented where available. The organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Naomi and Sylvester Smith Senior Living Center HUD Project No. 071-EE240 did not receive any insurance assistance.
Title: Non-Cash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activityof Naomi and Sylvester Smith Senior Living Center HUD Project No. 071-EE240, under programs of the federalgovernment for the year ended December 31, 2024. The information in this Schedule is presented in accordancewith the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because theSchedule presents only a selected portion of the operations of Naomi and Sylvester Smith Senior Living CenterHUD Project No. 071-EE240, it is not intended to and does not present the financial position, changes in net assetsor cash flows of Naomi and Sylvester Smith Senior Living Center. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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. Pass-through entity identifying numbers are presented where available. The organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization did not receive any non-cash assistance.

Finding Details

Condition: The required Enterprise Income Verification (EIV) information was not properly documented in one of the tenant files. Criteria: According to HUD regulations, Public Housing Agencies (PHAs) are required to use the EIV system to verify the income and eligibility of tenants participating in HUD rental assistance programs. The EIV Income Report and EIV Summary Report must be included in the tenant file to ensure compliance with federal requirements. Cause: The absence of the EIV information in the tenant file was due to a lack of proper documentation and inadequate internal controls to ensure compliance with HUD requirements relating to complete and accurate tenant files. Effect: Without the proper EIV information, there is an increased risk of providing rental assistance to ineligible tenants, which could result in questioned costs and potential repayment of federal funds. Recommendation: We recommend that management and those charge with governance to improve internal controls to ensure that all required EIV reports are included in tenant files. View of Responsible Officials: Management agrees with the finding.
Condition: The required Enterprise Income Verification (EIV) information was not properly documented in one of the tenant files. Criteria: According to HUD regulations, Public Housing Agencies (PHAs) are required to use the EIV system to verify the income and eligibility of tenants participating in HUD rental assistance programs. The EIV Income Report and EIV Summary Report must be included in the tenant file to ensure compliance with federal requirements. Cause: The absence of the EIV information in the tenant file was due to a lack of proper documentation and inadequate internal controls to ensure compliance with HUD requirements relating to complete and accurate tenant files. Effect: Without the proper EIV information, there is an increased risk of providing rental assistance to ineligible tenants, which could result in questioned costs and potential repayment of federal funds. Recommendation: We recommend that management and those charge with governance to improve internal controls to ensure that all required EIV reports are included in tenant files. View of Responsible Officials: Management agrees with the finding.