FAC Explorer

Audit 360237

FY End
2024-09-30
Total Expended
$72.91M
Findings
6
Programs
9
Organization: Park City Communities, INC (CT)
Year: 2024 Accepted: 2025-06-27
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
567887 2024-001 Material Weakness Yes E
567888 2024-001 Material Weakness Yes E
567889 2024-002 Material Weakness Yes E
1144329 2024-001 Material Weakness Yes E
1144330 2024-001 Material Weakness Yes E
1144331 2024-002 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $47.41M Yes 1
14.850 Public Housing Operating Fund $16.68M Yes 1
14.872 Public Housing Capital Fund $6.77M Yes 0
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $939,805 - 0
14.871 Section 8 Emergency Housing Vouchers $583,716 Yes 1
14.251 Community Project Funding Grant $282,977 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $106,021 - 0
14.892 Choice Neighborhoods Planning Grants $103,036 - 0
14.896 Family Self-Sufficiency Program $28,046 - 0

Contacts

Name Title Type
N3REFJLLS419 Alan Cashmore Auditee
2033378968 Melissa Ferrucci Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: Accrual basis of accounting De Minimis Rate Used: N Rate Explanation: Park City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Park City Communities ("Park City") under programs of the federal government for the year ended September 30, 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 Park City, it is not intended to and does not present the financial position, changes in net position, or cash flows of Park City.
Title: Summary of significant accounting policies Accounting Policies: Accrual basis of accounting De Minimis Rate Used: N Rate Explanation: Park City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 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.
Title: Indirect cost rate Accounting Policies: Accrual basis of accounting De Minimis Rate Used: N Rate Explanation: Park City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Park City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Public housing capital fund grants Accounting Policies: Accrual basis of accounting De Minimis Rate Used: N Rate Explanation: Park City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Below is a schedule summarizing the status of the capital fund grants of the entity: Grant number Grant Authorization Prior Expenses Current Year Expenses Cumulative Expenses CT216P001501-17 $4,011,186 $4,011,186 $- $4,011,186 CT26P001501-18 6,160,427 5,994,540 165,887 6,160,427 CT26P001501-19 6,399,467 5,675,405 724,062 6,399,467 CT26P001501-20 6,885,610 4,249,623 173,724 4,423,347 CT26P001051-21 7,264,281 3,863,584 1,939,660 5,803,244 CT26P001501-22 8,361,185 2,495,076 303,679 2,798,755 CT26H001501-22 5,000 - - - CT26P001501-23 8,491,746 2,121,709 821,953 2,943,662 CT26E001501-23 250,000 - - - CT26P001501-24 8,726,234 - 2,641,080 2,641,080 Total $61,550,136 $28,411,123 $6,770,045 $35,181,168
Title: Subrecipients Accounting Policies: Accrual basis of accounting De Minimis Rate Used: N Rate Explanation: Park City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. There were no monies passed through to subrecipients.
Title: Note 6 - Reconciliation of grant revenue to the audited financial statements Accounting Policies: Accrual basis of accounting De Minimis Rate Used: N Rate Explanation: Park City has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The amounts reported in the Schedule are reconciled with the amounts reported in Park City's financial statements as follows: Reconciliation of grant revenue to the audited financial statements Operating grant revenue $65,852,976 Capital contributions 151,215 Capital grant revenue (soft costs) 3,564,538 Capital grant revenue 3,337,269 Total $72,905,998

Finding Details

Finding 2024-001
Eligibility: Housing Voucher Cluster (FALN #14.871) Federal Award Identification Number and Year: CT001VO0325 Criteria HUD regulations of Annual Income (24 CFR § 5.609), Eligible Family Status (24 CFR § 5.403), Citizenship and Eligible Immigrant Status (24 CFR § 5.506) and Disclosure of Social Security Numbers (24 CFR § 5.216) require the collection and retention of certain tenant information to document the eligibility determination for each recipient. Condition The results of our testing indicated that certain items were unable to be located in the file, as follows: • In one instance, the utility allowance amount did not agree with HUD Form 50058. • In one instance, social security verification was missing from the tenant file. • In ten instances, income verification form was missing from the tenant file or not performed timely. Questioned Costs Not determinable. Context We selected a sample of 60 files for review. Our sample was a statistically valid sample. Effect or Possible Effect The tenant file documentation was incomplete and tenant income verification was not performed timely. Cause The cause is unknown. Identification as a Repeat Finding This finding is a repeat finding (see prior year finding number: 2023-001). Recommendation We recommend that Park City continue to improve its internal processes to ensure tenant files contain the required documentation and tenant income verification is performed timely. Park City's Response A memo relating to HUD and PHA verification requirements has been issued to staff. The Utility Allowance Schedule set up in Park City’s software has been confirmed for accuracy. Staff have been reminded to ensure the appropriate Utility Allowance Schedule is applied during processing of transactions. In addition, internal quarterly quality control reviews are in place.
Finding 2024-001
Eligibility: Housing Voucher Cluster (FALN #14.871) Federal Award Identification Number and Year: CT001VO0325 Criteria HUD regulations of Annual Income (24 CFR § 5.609), Eligible Family Status (24 CFR § 5.403), Citizenship and Eligible Immigrant Status (24 CFR § 5.506) and Disclosure of Social Security Numbers (24 CFR § 5.216) require the collection and retention of certain tenant information to document the eligibility determination for each recipient. Condition The results of our testing indicated that certain items were unable to be located in the file, as follows: • In one instance, the utility allowance amount did not agree with HUD Form 50058. • In one instance, social security verification was missing from the tenant file. • In ten instances, income verification form was missing from the tenant file or not performed timely. Questioned Costs Not determinable. Context We selected a sample of 60 files for review. Our sample was a statistically valid sample. Effect or Possible Effect The tenant file documentation was incomplete and tenant income verification was not performed timely. Cause The cause is unknown. Identification as a Repeat Finding This finding is a repeat finding (see prior year finding number: 2023-001). Recommendation We recommend that Park City continue to improve its internal processes to ensure tenant files contain the required documentation and tenant income verification is performed timely. Park City's Response A memo relating to HUD and PHA verification requirements has been issued to staff. The Utility Allowance Schedule set up in Park City’s software has been confirmed for accuracy. Staff have been reminded to ensure the appropriate Utility Allowance Schedule is applied during processing of transactions. In addition, internal quarterly quality control reviews are in place.
Finding 2024-002
Eligibility: Public Housing Operating Fund (FALN #14.850) Federal Award Identification Number and Year: CT00100004424D Criteria HUD regulations of Annual Income (24 CFR § 5.609), Eligible Family Status (24 CFR § 5.403), Citizenship and Eligible Immigrant Status (24 CFR § 5.506) and Disclosure of Social Security Numbers (24 CFR § 5.216) require the collection and retention of certain tenant information to document the eligibility determination for each recipient. Condition The results of our testing indicated that certain items were not completed in a timely matter as follows: • In twenty instances, the income verification form was not performed timely. Questioned Costs Not determinable. Context We selected a sample of 60 files for review. Our sample was a statistically valid sample. Effect or Possible Effect The tenant income verification was not performed timely. Cause The cause is unknown. Identification as a Repeat Finding This finding is a repeat finding (see prior year finding number: 2023-002). Recommendation We recommend that Park City continue to improve its internal processes to ensure tenant income verification is performed timely. Park City's Response Park City has implemented a secure, digital document management protocol requiring that all income verification forms and re-examination documents be scanned and stored within Yardi, the newly adopted digital management system. This transition ensures that all records are accurately maintained, securely stored, and readily accessible for audits and inspections. By digitizing these critical documents, Park City is enhancing regulatory compliance, reducing administrative inefficiencies, and strengthening data integrity. This approach aligns with best practices for record retention and enables swift retrieval of documentation to meet oversight and inspection requirements.
Finding 2024-001
Eligibility: Housing Voucher Cluster (FALN #14.871) Federal Award Identification Number and Year: CT001VO0325 Criteria HUD regulations of Annual Income (24 CFR § 5.609), Eligible Family Status (24 CFR § 5.403), Citizenship and Eligible Immigrant Status (24 CFR § 5.506) and Disclosure of Social Security Numbers (24 CFR § 5.216) require the collection and retention of certain tenant information to document the eligibility determination for each recipient. Condition The results of our testing indicated that certain items were unable to be located in the file, as follows: • In one instance, the utility allowance amount did not agree with HUD Form 50058. • In one instance, social security verification was missing from the tenant file. • In ten instances, income verification form was missing from the tenant file or not performed timely. Questioned Costs Not determinable. Context We selected a sample of 60 files for review. Our sample was a statistically valid sample. Effect or Possible Effect The tenant file documentation was incomplete and tenant income verification was not performed timely. Cause The cause is unknown. Identification as a Repeat Finding This finding is a repeat finding (see prior year finding number: 2023-001). Recommendation We recommend that Park City continue to improve its internal processes to ensure tenant files contain the required documentation and tenant income verification is performed timely. Park City's Response A memo relating to HUD and PHA verification requirements has been issued to staff. The Utility Allowance Schedule set up in Park City’s software has been confirmed for accuracy. Staff have been reminded to ensure the appropriate Utility Allowance Schedule is applied during processing of transactions. In addition, internal quarterly quality control reviews are in place.
Finding 2024-001
Eligibility: Housing Voucher Cluster (FALN #14.871) Federal Award Identification Number and Year: CT001VO0325 Criteria HUD regulations of Annual Income (24 CFR § 5.609), Eligible Family Status (24 CFR § 5.403), Citizenship and Eligible Immigrant Status (24 CFR § 5.506) and Disclosure of Social Security Numbers (24 CFR § 5.216) require the collection and retention of certain tenant information to document the eligibility determination for each recipient. Condition The results of our testing indicated that certain items were unable to be located in the file, as follows: • In one instance, the utility allowance amount did not agree with HUD Form 50058. • In one instance, social security verification was missing from the tenant file. • In ten instances, income verification form was missing from the tenant file or not performed timely. Questioned Costs Not determinable. Context We selected a sample of 60 files for review. Our sample was a statistically valid sample. Effect or Possible Effect The tenant file documentation was incomplete and tenant income verification was not performed timely. Cause The cause is unknown. Identification as a Repeat Finding This finding is a repeat finding (see prior year finding number: 2023-001). Recommendation We recommend that Park City continue to improve its internal processes to ensure tenant files contain the required documentation and tenant income verification is performed timely. Park City's Response A memo relating to HUD and PHA verification requirements has been issued to staff. The Utility Allowance Schedule set up in Park City’s software has been confirmed for accuracy. Staff have been reminded to ensure the appropriate Utility Allowance Schedule is applied during processing of transactions. In addition, internal quarterly quality control reviews are in place.
Finding 2024-002
Eligibility: Public Housing Operating Fund (FALN #14.850) Federal Award Identification Number and Year: CT00100004424D Criteria HUD regulations of Annual Income (24 CFR § 5.609), Eligible Family Status (24 CFR § 5.403), Citizenship and Eligible Immigrant Status (24 CFR § 5.506) and Disclosure of Social Security Numbers (24 CFR § 5.216) require the collection and retention of certain tenant information to document the eligibility determination for each recipient. Condition The results of our testing indicated that certain items were not completed in a timely matter as follows: • In twenty instances, the income verification form was not performed timely. Questioned Costs Not determinable. Context We selected a sample of 60 files for review. Our sample was a statistically valid sample. Effect or Possible Effect The tenant income verification was not performed timely. Cause The cause is unknown. Identification as a Repeat Finding This finding is a repeat finding (see prior year finding number: 2023-002). Recommendation We recommend that Park City continue to improve its internal processes to ensure tenant income verification is performed timely. Park City's Response Park City has implemented a secure, digital document management protocol requiring that all income verification forms and re-examination documents be scanned and stored within Yardi, the newly adopted digital management system. This transition ensures that all records are accurately maintained, securely stored, and readily accessible for audits and inspections. By digitizing these critical documents, Park City is enhancing regulatory compliance, reducing administrative inefficiencies, and strengthening data integrity. This approach aligns with best practices for record retention and enables swift retrieval of documentation to meet oversight and inspection requirements.