FAC Explorer

Audit 358536

FY End
2024-09-30
Total Expended
$10.49M
Findings
2
Programs
2
Organization: Senior Citizens Housing Development Corporation of Montgomery County (FL)
Year: 2024 Accepted: 2025-06-11
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
564420 2024-001 Significant Deficiency Yes EN
1140862 2024-001 Significant Deficiency Yes EN

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $8.35M Yes 0
14.195 Project-Based Rental Assistance (pbra) $2.14M Yes 1

Contacts

Name Title Type
GXALXJ2E7A77 Irene Phillips Auditee
9548359200 Jennifer R. Koffman 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. De Minimis Rate Used: N Rate Explanation: Senior Citizens Housing Development Corporation of Montgomery County has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Senior Citizens Housing Development Corporation of Montgomery County, HUD Project No. 000-11186, and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Senior Citizens Housing Development Corporation of Montgomery County, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Senior Citizens Housing Development Corporation of Montgomery County.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT MORTGAGE REFINANCE 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. De Minimis Rate Used: N Rate Explanation: Senior Citizens Housing Development Corporation of Montgomery County has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Senior Citizens Housing Development Corporation of Montgomery County has received a HUD mortgage insurance for the refinancing of existing multifamily housing projects under section 207/223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Senior Citizens Housing Development Corporation of Montgomery County received no additional loans during the year. The balance of the loan outstanding as of September 30, 2024 was $8,054,295.

Finding Details

Finding 2024-001
FINDING No. 2024-001: Project Based Rental Assistance Program, ALN 14.195 Finding Resolution Status: Unresolved. Information on Universe Population Size: One hundred and seventy-two tenants. Total assistance revenue. Sample Size Information: Twenty tenants. All monthly HAP requests. Identification of Repeat Finding and Finding Reference Number: Yes, 2023-001. Criteria: HUD regulations require all initial and ongoing tenant eligibility documentation to be appropriately executed and maintained. Additionally, HUD requires timely verification of the tenant’s current income through the use of Enterprise Income Verification (EIV) reports. As required by HUD regulations, annual recertification should be submitted in a timely manner to the regional HUD field office. Statement of Condition: Missing documentation in tenant files: • Thirteen tenant files were missing the initial EIV reports. • Three tenants files had tenant signed HUD-50059 forms signed by the tenant after the move in date. • Seven tenant files did not have an application stamp on the application for housing. • One tenant file was missing the application for housing form. • Two tenant files were missing the house rules. • One tenant file was missing the pet policy. • One tenant file was missing the bed bug policy. • Two tenant files had no tenant signatures on the pet policy. • Seven tenant files did not have the annual unit inspection dated. • One tenant file was missing the move in unit inspection. • Nine tenant files did not have the move in unit inspection dated. In addition, the Project requested rental assistance for tenants with expired annual certifications in TRACS. Cause: The manager did not perform and/or maintain appropriate tenant eligibility documentation in accordance with HUD requirements. Effect or Potential Effect: Improper maintenance of tenant files and not verifying tenant eligibility in accordance with HUD requirements can result in the cost of assistance and residency being disallowed. In addition, unable to determine date and time for the receipt of applications for proper waiting list placement and subsequent selection to occupy a unit. Furthermore, the Project is not in compliance with certain tenant requirements for submitting timely recertifications to the regional HUD field office resulting in withheld rental assistance. Auditor Non-Compliance Code: R – Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The manager should verify eligibility by obtaining and maintaining all required documents for all tenants, maintain support for tenant income verification through the EIV system in a timely manner, and perform appropriate unit inspections. Furthermore, annual recertifications should be performed prior to expirations and transmitted to HUD through TRACS. Response Indicator: Agree Completion Date: 9/30/2025 Response: Staff training has been provided with additional HUD training inclusive of EIV reporting and tenant file maintenance and included in monthly reporting procedures.
Finding 2024-001
FINDING No. 2024-001: Project Based Rental Assistance Program, ALN 14.195 Finding Resolution Status: Unresolved. Information on Universe Population Size: One hundred and seventy-two tenants. Total assistance revenue. Sample Size Information: Twenty tenants. All monthly HAP requests. Identification of Repeat Finding and Finding Reference Number: Yes, 2023-001. Criteria: HUD regulations require all initial and ongoing tenant eligibility documentation to be appropriately executed and maintained. Additionally, HUD requires timely verification of the tenant’s current income through the use of Enterprise Income Verification (EIV) reports. As required by HUD regulations, annual recertification should be submitted in a timely manner to the regional HUD field office. Statement of Condition: Missing documentation in tenant files: • Thirteen tenant files were missing the initial EIV reports. • Three tenants files had tenant signed HUD-50059 forms signed by the tenant after the move in date. • Seven tenant files did not have an application stamp on the application for housing. • One tenant file was missing the application for housing form. • Two tenant files were missing the house rules. • One tenant file was missing the pet policy. • One tenant file was missing the bed bug policy. • Two tenant files had no tenant signatures on the pet policy. • Seven tenant files did not have the annual unit inspection dated. • One tenant file was missing the move in unit inspection. • Nine tenant files did not have the move in unit inspection dated. In addition, the Project requested rental assistance for tenants with expired annual certifications in TRACS. Cause: The manager did not perform and/or maintain appropriate tenant eligibility documentation in accordance with HUD requirements. Effect or Potential Effect: Improper maintenance of tenant files and not verifying tenant eligibility in accordance with HUD requirements can result in the cost of assistance and residency being disallowed. In addition, unable to determine date and time for the receipt of applications for proper waiting list placement and subsequent selection to occupy a unit. Furthermore, the Project is not in compliance with certain tenant requirements for submitting timely recertifications to the regional HUD field office resulting in withheld rental assistance. Auditor Non-Compliance Code: R – Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The manager should verify eligibility by obtaining and maintaining all required documents for all tenants, maintain support for tenant income verification through the EIV system in a timely manner, and perform appropriate unit inspections. Furthermore, annual recertifications should be performed prior to expirations and transmitted to HUD through TRACS. Response Indicator: Agree Completion Date: 9/30/2025 Response: Staff training has been provided with additional HUD training inclusive of EIV reporting and tenant file maintenance and included in monthly reporting procedures.