Audit 36065

FY End
2022-09-30
Total Expended
$2.35M
Findings
12
Programs
2
Organization: Sessions Village 202 171-Ee015 (WA)
Year: 2022 Accepted: 2023-03-09

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
30567 2022-002 Material Weakness - E
30568 2022-001 - Yes L
30569 2022-001 - Yes L
30570 2022-002 Material Weakness - E
30571 2022-001 - Yes L
30572 2022-001 - Yes L
607009 2022-002 Material Weakness - E
607010 2022-001 - Yes L
607011 2022-001 - Yes L
607012 2022-002 Material Weakness - E
607013 2022-001 - Yes L
607014 2022-001 - Yes L

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $350,000 Yes 1
14.157 Supportive Housing for the Elderly $109,554 Yes 2

Contacts

Name Title Type
RJ25ETDAZG53 Ashley Healey Auditee
5092356196 Louis McCollum Auditor
No contacts on file

Notes to SEFA

Title: Loan balances Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards 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: Sessions Village 202 has not elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. The ending balance for the Section 202 Supportive Housing for the Elderly Capital Advance Mortgage Note was $1,347,200 as of September 30, 2022. The ending balance for the State of Washington HOME Investment Partnership Program was $547,945 as of September 30, 2022. The ending balance for the Spokane County HOME Investment Partnership Program was $350,000 as of September 30, 2022.
Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards 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: Sessions Village 202 has not elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. The schedule of expenditures of federal awards includes the federal award activity of Sessions Village 202 under programs of the federal government for the year ended September 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of the 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 Sessions Village 202, it is not intended to and does not present the financial position, changes in net position or cash flows of Sessions Village 202.

Finding Details

S3800-010 Finding Reference Number ? 2022-002 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Supportive Housing for the Elderly, Capital Advance, ALN 14.157 Section 202 Supportive Housing for the Elderly, Project Rental Assistance Contract, ALN 14.157 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? In progress S3800-017 Information on Universe Population Size ? 19 PRAC units S3800-018 Sample Size Information ? 5 tenant files. Errors were found on 3 out of the 5 tenants tested. S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? Per HUD Handbook 4350.3 Rev-1, Chapter 7: Owners are responsible to obtain the original signature of the head, co-head, spouse, and all other adult members of the household on the HUD-50059 with the required data electronically generated by owner?s software package. In addition, Owners are required to maintain the copy with original signatures in the tenant file. Also, Owners must provide the tenant a new HUD-50059-A reflecting all changes in rents, utility allowances, total tenant payment, tenant rent and assistance payments. Also, Owners must implement approved rent changes on the effective date approved by HUD or the Contract Administrator. S3800-030 Statement of Condition ? On July 8, 2022, HUD approved the PRAC contract renewal effective June 6, 2022, with a contract rent increase from $765 to $795 for 19 units. During our audit, we noted two instances where a new HUD-50059-A form was not completed for the June 6, 2022 effective rent increase. In addition, we noted one instance where the HUD-50059-A form was effective December 15, 2021 upon move-in, and not signed by the tenant until February 8, 2022. S3800-032 Cause ? Management failed to obtain the appropriate signatures and maintain the copy with original signatures in the tenant file. S3800-033 Effect or Potential Effect ? The allocation of the contract rent between HUD assistance payment and tenant rent may be incorrect, and Sessions Village 202 may have collected the incorrect amounts from HUD and the tenants. S3800-035 Auditor Non-Compliance Code ? R (Section 8 Program Administration) S3800-037 FHA/Contract Number ? 171-EE015 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Sessions Village 202 will complete new HUD-50059-A forms for each resident effective June 6, 2022, and contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. S3800-050 Context ? A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 2 out of the 5 selected tenant files did not include a new HUD-50059-A form that was completed when the rent increased from $765 to $795 effective June 6, 2022. 1 tenant file where the HUD-50059-A form was effective December 15, 2021 upon move-in, and not signed by the tenant until February 8, 2022. Our sample was a statistically valid sample. S3800-080 Recommendation ? We recommend Sessions Village 202 complete new HUD-50059-A forms for residents where the form was missing from their file. After the new HUD-50059-A forms are completed, we recommend Sessions Village 202 contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers, if necessary. Also, we recommend staff involved in the tenant eligibility process review the requirements and revise their current internal controls over tenant eligibility needed to ensure the appropriate procedures are performed going forward. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Sessions Village 202 obtained the new HUD-50059-A form effective June 6, 2022 for one of the residents where it was missing. The second resident has moved out of the community, and therefore they are unable to obtain the document. Sessions Village will contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. The Property Manager will implement controls to ensure the appropriate forms are completed correctly and are kept in the files going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? September 30, 2023 S3800-150 Response ? Sessions Village 202 obtained the new HUD-50059-A form effective June 6, 2022 for one of the residents where it was missing. The second resident has moved out of the community, and therefore they are unable to obtain the document. Sessions Village will contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. The Property Manager will implement controls to ensure the appropriate forms are completed correctly and are kept in the files going forward. S3800-160 Contact Person First Name ? Ashley S3800-180 Contact Person Last Name ? Healey
S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Capital Advance, CFDA Number 14.157 Section 202 Project Rental Assistance Contract, CFDA Number 14.157 HOME Investment Partnership Program, CFDA Number 14.239 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? Resolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? 2021-002 S3800-020 Criteria ? Per the regulatory agreement Section 11(f) for a project under the ALN 14.157, the Project is required to submit the audited financial statements to HUD within 90 days of a Project's fiscal year end. S3800-030 Statement of Condition - Sessions Village 202 did not meet the financial statement filing requirements for the year ended September 30, 2022. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements. S3800-032 Cause ? Sessions Village 202 was not able to meet the financial statement filing deadline for the year ended September 30, 2022. S3800-033 Effect or Potential Effect ? HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement. S3800-035 Auditor Non-Compliance Code ? Z (Other) S3800-037 FHA/Contract Number ? 171-EE015 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Sessions Village 202 recognizes that they did not submit to HUD within the allotted time period and will follow the HUD financial statement filing requirements going forward. S3800-080 Recommendation ? We recommend Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? February 9, 2023 S3800-150 Response ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward.
S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Capital Advance, CFDA Number 14.157 Section 202 Project Rental Assistance Contract, CFDA Number 14.157 HOME Investment Partnership Program, CFDA Number 14.239 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? Resolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? 2021-002 S3800-020 Criteria ? Per the regulatory agreement Section 11(f) for a project under the ALN 14.157, the Project is required to submit the audited financial statements to HUD within 90 days of a Project's fiscal year end. S3800-030 Statement of Condition - Sessions Village 202 did not meet the financial statement filing requirements for the year ended September 30, 2022. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements. S3800-032 Cause ? Sessions Village 202 was not able to meet the financial statement filing deadline for the year ended September 30, 2022. S3800-033 Effect or Potential Effect ? HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement. S3800-035 Auditor Non-Compliance Code ? Z (Other) S3800-037 FHA/Contract Number ? 171-EE015 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Sessions Village 202 recognizes that they did not submit to HUD within the allotted time period and will follow the HUD financial statement filing requirements going forward. S3800-080 Recommendation ? We recommend Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? February 9, 2023 S3800-150 Response ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward.
S3800-010 Finding Reference Number ? 2022-002 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Supportive Housing for the Elderly, Capital Advance, ALN 14.157 Section 202 Supportive Housing for the Elderly, Project Rental Assistance Contract, ALN 14.157 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? In progress S3800-017 Information on Universe Population Size ? 19 PRAC units S3800-018 Sample Size Information ? 5 tenant files. Errors were found on 3 out of the 5 tenants tested. S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? Per HUD Handbook 4350.3 Rev-1, Chapter 7: Owners are responsible to obtain the original signature of the head, co-head, spouse, and all other adult members of the household on the HUD-50059 with the required data electronically generated by owner?s software package. In addition, Owners are required to maintain the copy with original signatures in the tenant file. Also, Owners must provide the tenant a new HUD-50059-A reflecting all changes in rents, utility allowances, total tenant payment, tenant rent and assistance payments. Also, Owners must implement approved rent changes on the effective date approved by HUD or the Contract Administrator. S3800-030 Statement of Condition ? On July 8, 2022, HUD approved the PRAC contract renewal effective June 6, 2022, with a contract rent increase from $765 to $795 for 19 units. During our audit, we noted two instances where a new HUD-50059-A form was not completed for the June 6, 2022 effective rent increase. In addition, we noted one instance where the HUD-50059-A form was effective December 15, 2021 upon move-in, and not signed by the tenant until February 8, 2022. S3800-032 Cause ? Management failed to obtain the appropriate signatures and maintain the copy with original signatures in the tenant file. S3800-033 Effect or Potential Effect ? The allocation of the contract rent between HUD assistance payment and tenant rent may be incorrect, and Sessions Village 202 may have collected the incorrect amounts from HUD and the tenants. S3800-035 Auditor Non-Compliance Code ? R (Section 8 Program Administration) S3800-037 FHA/Contract Number ? 171-EE015 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Sessions Village 202 will complete new HUD-50059-A forms for each resident effective June 6, 2022, and contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. S3800-050 Context ? A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 2 out of the 5 selected tenant files did not include a new HUD-50059-A form that was completed when the rent increased from $765 to $795 effective June 6, 2022. 1 tenant file where the HUD-50059-A form was effective December 15, 2021 upon move-in, and not signed by the tenant until February 8, 2022. Our sample was a statistically valid sample. S3800-080 Recommendation ? We recommend Sessions Village 202 complete new HUD-50059-A forms for residents where the form was missing from their file. After the new HUD-50059-A forms are completed, we recommend Sessions Village 202 contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers, if necessary. Also, we recommend staff involved in the tenant eligibility process review the requirements and revise their current internal controls over tenant eligibility needed to ensure the appropriate procedures are performed going forward. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Sessions Village 202 obtained the new HUD-50059-A form effective June 6, 2022 for one of the residents where it was missing. The second resident has moved out of the community, and therefore they are unable to obtain the document. Sessions Village will contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. The Property Manager will implement controls to ensure the appropriate forms are completed correctly and are kept in the files going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? September 30, 2023 S3800-150 Response ? Sessions Village 202 obtained the new HUD-50059-A form effective June 6, 2022 for one of the residents where it was missing. The second resident has moved out of the community, and therefore they are unable to obtain the document. Sessions Village will contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. The Property Manager will implement controls to ensure the appropriate forms are completed correctly and are kept in the files going forward. S3800-160 Contact Person First Name ? Ashley S3800-180 Contact Person Last Name ? Healey
S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Capital Advance, CFDA Number 14.157 Section 202 Project Rental Assistance Contract, CFDA Number 14.157 HOME Investment Partnership Program, CFDA Number 14.239 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? Resolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? 2021-002 S3800-020 Criteria ? Per the regulatory agreement Section 11(f) for a project under the ALN 14.157, the Project is required to submit the audited financial statements to HUD within 90 days of a Project's fiscal year end. S3800-030 Statement of Condition - Sessions Village 202 did not meet the financial statement filing requirements for the year ended September 30, 2022. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements. S3800-032 Cause ? Sessions Village 202 was not able to meet the financial statement filing deadline for the year ended September 30, 2022. S3800-033 Effect or Potential Effect ? HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement. S3800-035 Auditor Non-Compliance Code ? Z (Other) S3800-037 FHA/Contract Number ? 171-EE015 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Sessions Village 202 recognizes that they did not submit to HUD within the allotted time period and will follow the HUD financial statement filing requirements going forward. S3800-080 Recommendation ? We recommend Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? February 9, 2023 S3800-150 Response ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward.
S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Capital Advance, CFDA Number 14.157 Section 202 Project Rental Assistance Contract, CFDA Number 14.157 HOME Investment Partnership Program, CFDA Number 14.239 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? Resolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? 2021-002 S3800-020 Criteria ? Per the regulatory agreement Section 11(f) for a project under the ALN 14.157, the Project is required to submit the audited financial statements to HUD within 90 days of a Project's fiscal year end. S3800-030 Statement of Condition - Sessions Village 202 did not meet the financial statement filing requirements for the year ended September 30, 2022. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements. S3800-032 Cause ? Sessions Village 202 was not able to meet the financial statement filing deadline for the year ended September 30, 2022. S3800-033 Effect or Potential Effect ? HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement. S3800-035 Auditor Non-Compliance Code ? Z (Other) S3800-037 FHA/Contract Number ? 171-EE015 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Sessions Village 202 recognizes that they did not submit to HUD within the allotted time period and will follow the HUD financial statement filing requirements going forward. S3800-080 Recommendation ? We recommend Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? February 9, 2023 S3800-150 Response ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward.
S3800-010 Finding Reference Number ? 2022-002 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Supportive Housing for the Elderly, Capital Advance, ALN 14.157 Section 202 Supportive Housing for the Elderly, Project Rental Assistance Contract, ALN 14.157 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? In progress S3800-017 Information on Universe Population Size ? 19 PRAC units S3800-018 Sample Size Information ? 5 tenant files. Errors were found on 3 out of the 5 tenants tested. S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? Per HUD Handbook 4350.3 Rev-1, Chapter 7: Owners are responsible to obtain the original signature of the head, co-head, spouse, and all other adult members of the household on the HUD-50059 with the required data electronically generated by owner?s software package. In addition, Owners are required to maintain the copy with original signatures in the tenant file. Also, Owners must provide the tenant a new HUD-50059-A reflecting all changes in rents, utility allowances, total tenant payment, tenant rent and assistance payments. Also, Owners must implement approved rent changes on the effective date approved by HUD or the Contract Administrator. S3800-030 Statement of Condition ? On July 8, 2022, HUD approved the PRAC contract renewal effective June 6, 2022, with a contract rent increase from $765 to $795 for 19 units. During our audit, we noted two instances where a new HUD-50059-A form was not completed for the June 6, 2022 effective rent increase. In addition, we noted one instance where the HUD-50059-A form was effective December 15, 2021 upon move-in, and not signed by the tenant until February 8, 2022. S3800-032 Cause ? Management failed to obtain the appropriate signatures and maintain the copy with original signatures in the tenant file. S3800-033 Effect or Potential Effect ? The allocation of the contract rent between HUD assistance payment and tenant rent may be incorrect, and Sessions Village 202 may have collected the incorrect amounts from HUD and the tenants. S3800-035 Auditor Non-Compliance Code ? R (Section 8 Program Administration) S3800-037 FHA/Contract Number ? 171-EE015 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Sessions Village 202 will complete new HUD-50059-A forms for each resident effective June 6, 2022, and contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. S3800-050 Context ? A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 2 out of the 5 selected tenant files did not include a new HUD-50059-A form that was completed when the rent increased from $765 to $795 effective June 6, 2022. 1 tenant file where the HUD-50059-A form was effective December 15, 2021 upon move-in, and not signed by the tenant until February 8, 2022. Our sample was a statistically valid sample. S3800-080 Recommendation ? We recommend Sessions Village 202 complete new HUD-50059-A forms for residents where the form was missing from their file. After the new HUD-50059-A forms are completed, we recommend Sessions Village 202 contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers, if necessary. Also, we recommend staff involved in the tenant eligibility process review the requirements and revise their current internal controls over tenant eligibility needed to ensure the appropriate procedures are performed going forward. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Sessions Village 202 obtained the new HUD-50059-A form effective June 6, 2022 for one of the residents where it was missing. The second resident has moved out of the community, and therefore they are unable to obtain the document. Sessions Village will contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. The Property Manager will implement controls to ensure the appropriate forms are completed correctly and are kept in the files going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? September 30, 2023 S3800-150 Response ? Sessions Village 202 obtained the new HUD-50059-A form effective June 6, 2022 for one of the residents where it was missing. The second resident has moved out of the community, and therefore they are unable to obtain the document. Sessions Village will contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. The Property Manager will implement controls to ensure the appropriate forms are completed correctly and are kept in the files going forward. S3800-160 Contact Person First Name ? Ashley S3800-180 Contact Person Last Name ? Healey
S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Capital Advance, CFDA Number 14.157 Section 202 Project Rental Assistance Contract, CFDA Number 14.157 HOME Investment Partnership Program, CFDA Number 14.239 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? Resolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? 2021-002 S3800-020 Criteria ? Per the regulatory agreement Section 11(f) for a project under the ALN 14.157, the Project is required to submit the audited financial statements to HUD within 90 days of a Project's fiscal year end. S3800-030 Statement of Condition - Sessions Village 202 did not meet the financial statement filing requirements for the year ended September 30, 2022. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements. S3800-032 Cause ? Sessions Village 202 was not able to meet the financial statement filing deadline for the year ended September 30, 2022. S3800-033 Effect or Potential Effect ? HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement. S3800-035 Auditor Non-Compliance Code ? Z (Other) S3800-037 FHA/Contract Number ? 171-EE015 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Sessions Village 202 recognizes that they did not submit to HUD within the allotted time period and will follow the HUD financial statement filing requirements going forward. S3800-080 Recommendation ? We recommend Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? February 9, 2023 S3800-150 Response ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward.
S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Capital Advance, CFDA Number 14.157 Section 202 Project Rental Assistance Contract, CFDA Number 14.157 HOME Investment Partnership Program, CFDA Number 14.239 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? Resolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? 2021-002 S3800-020 Criteria ? Per the regulatory agreement Section 11(f) for a project under the ALN 14.157, the Project is required to submit the audited financial statements to HUD within 90 days of a Project's fiscal year end. S3800-030 Statement of Condition - Sessions Village 202 did not meet the financial statement filing requirements for the year ended September 30, 2022. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements. S3800-032 Cause ? Sessions Village 202 was not able to meet the financial statement filing deadline for the year ended September 30, 2022. S3800-033 Effect or Potential Effect ? HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement. S3800-035 Auditor Non-Compliance Code ? Z (Other) S3800-037 FHA/Contract Number ? 171-EE015 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Sessions Village 202 recognizes that they did not submit to HUD within the allotted time period and will follow the HUD financial statement filing requirements going forward. S3800-080 Recommendation ? We recommend Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? February 9, 2023 S3800-150 Response ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward.
S3800-010 Finding Reference Number ? 2022-002 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Supportive Housing for the Elderly, Capital Advance, ALN 14.157 Section 202 Supportive Housing for the Elderly, Project Rental Assistance Contract, ALN 14.157 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? In progress S3800-017 Information on Universe Population Size ? 19 PRAC units S3800-018 Sample Size Information ? 5 tenant files. Errors were found on 3 out of the 5 tenants tested. S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? Per HUD Handbook 4350.3 Rev-1, Chapter 7: Owners are responsible to obtain the original signature of the head, co-head, spouse, and all other adult members of the household on the HUD-50059 with the required data electronically generated by owner?s software package. In addition, Owners are required to maintain the copy with original signatures in the tenant file. Also, Owners must provide the tenant a new HUD-50059-A reflecting all changes in rents, utility allowances, total tenant payment, tenant rent and assistance payments. Also, Owners must implement approved rent changes on the effective date approved by HUD or the Contract Administrator. S3800-030 Statement of Condition ? On July 8, 2022, HUD approved the PRAC contract renewal effective June 6, 2022, with a contract rent increase from $765 to $795 for 19 units. During our audit, we noted two instances where a new HUD-50059-A form was not completed for the June 6, 2022 effective rent increase. In addition, we noted one instance where the HUD-50059-A form was effective December 15, 2021 upon move-in, and not signed by the tenant until February 8, 2022. S3800-032 Cause ? Management failed to obtain the appropriate signatures and maintain the copy with original signatures in the tenant file. S3800-033 Effect or Potential Effect ? The allocation of the contract rent between HUD assistance payment and tenant rent may be incorrect, and Sessions Village 202 may have collected the incorrect amounts from HUD and the tenants. S3800-035 Auditor Non-Compliance Code ? R (Section 8 Program Administration) S3800-037 FHA/Contract Number ? 171-EE015 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Sessions Village 202 will complete new HUD-50059-A forms for each resident effective June 6, 2022, and contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. S3800-050 Context ? A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 2 out of the 5 selected tenant files did not include a new HUD-50059-A form that was completed when the rent increased from $765 to $795 effective June 6, 2022. 1 tenant file where the HUD-50059-A form was effective December 15, 2021 upon move-in, and not signed by the tenant until February 8, 2022. Our sample was a statistically valid sample. S3800-080 Recommendation ? We recommend Sessions Village 202 complete new HUD-50059-A forms for residents where the form was missing from their file. After the new HUD-50059-A forms are completed, we recommend Sessions Village 202 contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers, if necessary. Also, we recommend staff involved in the tenant eligibility process review the requirements and revise their current internal controls over tenant eligibility needed to ensure the appropriate procedures are performed going forward. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Sessions Village 202 obtained the new HUD-50059-A form effective June 6, 2022 for one of the residents where it was missing. The second resident has moved out of the community, and therefore they are unable to obtain the document. Sessions Village will contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. The Property Manager will implement controls to ensure the appropriate forms are completed correctly and are kept in the files going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? September 30, 2023 S3800-150 Response ? Sessions Village 202 obtained the new HUD-50059-A form effective June 6, 2022 for one of the residents where it was missing. The second resident has moved out of the community, and therefore they are unable to obtain the document. Sessions Village will contact their HUD account executive and determine the corrective action needed to revise the housing assistance payment vouchers. The Property Manager will implement controls to ensure the appropriate forms are completed correctly and are kept in the files going forward. S3800-160 Contact Person First Name ? Ashley S3800-180 Contact Person Last Name ? Healey
S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Capital Advance, CFDA Number 14.157 Section 202 Project Rental Assistance Contract, CFDA Number 14.157 HOME Investment Partnership Program, CFDA Number 14.239 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? Resolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? 2021-002 S3800-020 Criteria ? Per the regulatory agreement Section 11(f) for a project under the ALN 14.157, the Project is required to submit the audited financial statements to HUD within 90 days of a Project's fiscal year end. S3800-030 Statement of Condition - Sessions Village 202 did not meet the financial statement filing requirements for the year ended September 30, 2022. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements. S3800-032 Cause ? Sessions Village 202 was not able to meet the financial statement filing deadline for the year ended September 30, 2022. S3800-033 Effect or Potential Effect ? HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement. S3800-035 Auditor Non-Compliance Code ? Z (Other) S3800-037 FHA/Contract Number ? 171-EE015 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Sessions Village 202 recognizes that they did not submit to HUD within the allotted time period and will follow the HUD financial statement filing requirements going forward. S3800-080 Recommendation ? We recommend Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? February 9, 2023 S3800-150 Response ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward.
S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Capital Advance, CFDA Number 14.157 Section 202 Project Rental Assistance Contract, CFDA Number 14.157 HOME Investment Partnership Program, CFDA Number 14.239 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? Resolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? 2021-002 S3800-020 Criteria ? Per the regulatory agreement Section 11(f) for a project under the ALN 14.157, the Project is required to submit the audited financial statements to HUD within 90 days of a Project's fiscal year end. S3800-030 Statement of Condition - Sessions Village 202 did not meet the financial statement filing requirements for the year ended September 30, 2022. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements. S3800-032 Cause ? Sessions Village 202 was not able to meet the financial statement filing deadline for the year ended September 30, 2022. S3800-033 Effect or Potential Effect ? HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement. S3800-035 Auditor Non-Compliance Code ? Z (Other) S3800-037 FHA/Contract Number ? 171-EE015 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Sessions Village 202 recognizes that they did not submit to HUD within the allotted time period and will follow the HUD financial statement filing requirements going forward. S3800-080 Recommendation ? We recommend Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? February 9, 2023 S3800-150 Response ? Sessions Village 202 will follow the filing requirements of the regulatory agreement going forward.