FAC Explorer

Audit 363827

FY End
2023-12-31
Total Expended
$20.06M
Findings
2
Programs
3
Organization: Park Shore East Cooperative (IL)
Year: 2023 Accepted: 2025-08-06
Auditor: Wieland Wallace INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
572978 2023-001 Significant Deficiency - E
1149420 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $9.13M Yes 0
14.135 Mortgage Insurance_rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate $8.27M - 0
14.195 Section 8 Housing Assistance Payments Program $2.67M Yes 1

Contacts

Name Title Type
GB4AJNEQNCN9 Mike Levine Auditee
7732865400 Lindsay Wallace Auditor
No contacts on file

Notes to SEFA

Title: OTHER FEDERAL ASSISTANCE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal expenditures activity of Park Shore East Cooperative, HUD Project No. 071-35418, No. 071-10025 and No. 071-11475, 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. During the year ended December 31, 2023, the Organization did not receive any other Federal assistance such as non-cash assistance, insurance, loans or loan guarantees.

Finding Details

Finding 2023-001
Finding Reference Number: 2023-01 Federal Program: Sec 8 14.195 Type of Finding: Federal Award Finding Finding Resolution Status: Resolved Criteria: Tenant income is to be reconciled to Enterprise Income Verification system (EIV) Statement of Condition: EIV reports were being run as mandated although proper reconciliation between tenant declared income and the EIV reports were not being conducted for all tenants. This resulted in incorrect calculation of subsidies and over collection by Cooperative. Cause: Management oversight Effect or Potential Effect: Noncompliance and over-collection of subsidies. Auditor Noncompliance Code: E – Eligibility Questioned Costs: $20,331 of subsidies were returned to HUD Reporting Views of Responsible Officials: Management has implemented proper internal controls to ensure compliance with EIV requirements. Recommendation: Management should use EIV system in its entirety to verify tenant employment and income during recertifications and calculate subsidy payments correctly. Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: Management agrees with the finding. Management has implemented proper internal controls to assure the EIV reports are used properly. Response Indicator: Agree Completion Date: 5/31/2023 Response: Management has implemented proper internal controls to ensure compliance with EIV requirements.
Finding 2023-001
Finding Reference Number: 2023-01 Federal Program: Sec 8 14.195 Type of Finding: Federal Award Finding Finding Resolution Status: Resolved Criteria: Tenant income is to be reconciled to Enterprise Income Verification system (EIV) Statement of Condition: EIV reports were being run as mandated although proper reconciliation between tenant declared income and the EIV reports were not being conducted for all tenants. This resulted in incorrect calculation of subsidies and over collection by Cooperative. Cause: Management oversight Effect or Potential Effect: Noncompliance and over-collection of subsidies. Auditor Noncompliance Code: E – Eligibility Questioned Costs: $20,331 of subsidies were returned to HUD Reporting Views of Responsible Officials: Management has implemented proper internal controls to ensure compliance with EIV requirements. Recommendation: Management should use EIV system in its entirety to verify tenant employment and income during recertifications and calculate subsidy payments correctly. Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: Management agrees with the finding. Management has implemented proper internal controls to assure the EIV reports are used properly. Response Indicator: Agree Completion Date: 5/31/2023 Response: Management has implemented proper internal controls to ensure compliance with EIV requirements.