FAC Explorer

Audit 363916

FY End
2024-12-31
Total Expended
$3.15M
Findings
4
Programs
2
Organization: Ncsc/usa Housing Development Corporation Three, INC (FL)
Year: 2024 Accepted: 2025-08-07
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
573037 2024-001 - - N
573038 2024-002 - - E
1149479 2024-001 - - N
1149480 2024-002 - - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $2.84M Yes 2
14.157 Supportive Housing for the Elderly - Prac $314,590 - 0

Contacts

Name Title Type
VNJCUKZL1WH9 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: NCSC/USA Housing Development Corporation Three, Inc. 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 includes the federal award activity of NCSC/USA Housing Development Corporation Three, Inc., operating as Lynn Williams Apartments, HUD Project No. 033-EE032, 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 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 NCSC/USA Housing Development Corporation Three, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of NCSC/USA Housing Development Corporation Three, Inc.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE 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: NCSC/USA Housing Development Corporation Three, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. NCSC/USA Housing Development Corporation Three, Inc. has received a HUD capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. NCSC/USA Housing Development Corporation Three, Inc. received no additional loans during the year. The balance of the capital advance outstanding as of December 31, 2024 was $2,840,400.

Finding Details

Finding 2024-001
FINDING No. 2024-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended December 31, 2024. Sample Size Information: All replacement reserve deposits for the year ended December 31, 2024. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, required monthly deposits must be made to the Project’s reserve for replacement account, as authorized by HUD. Statement of Condition: The Project overfunded the reserve for replacement account by $4,143. Cause: The Project overfunded the reserve for replacement account by depositing an extra monthly deposit in the amount of $3,043 and depositing an excess amount of $1,100 when taking corrective action for Finding 2023-002. Effect or Potential Effect: Overfunding of the reserve for replacement. Auditor Non-Compliance Code: N – Replacement Reserve Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted. Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month, verify the accuracy of any additional required deposits, and submit a form HUD-9250 to withdraw the excess funding. Response Indicator: Agree. Completion date: 12/31/2025 Response: The verification of the correct funding amounts is now confirmed against approved 9250 on a monthly basis, and is a step that has been added on the month-end close checklist.
Finding 2024-002
FINDING No. 2024-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Five former tenants. Sample Size Information: Three former tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, the owner must refund the full security deposit plus accrued interest and/or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant’s rights under HUD regulations and state and local laws within 30 days from move-out. Statement of Condition: The Project did not refund the security deposit plus accrued interest to one tenant within the required 30 days from tenant move-out. Cause: The Project did not follow state law and HUD regulations for refunding security deposits resulting in untimely refunds of security deposits. Effect or Potential Effect: The Project is not in compliance with HUD regulations and state laws requiring tenant security deposits to be refunded within 30 days of a tenant move out if no assessments are made against that tenant. Auditor Non-Compliance Code: M – Security Deposits Reporting Views of Responsible Officials:The Project agrees with the finding and the auditor’s recommendation has been adopted. Recommendation: The Project should comply with state law and HUD regulations for refunding security deposits timely. Response Indicator: Agree. Completion date: 09/25/2024 Response: Staff training has been provided and included in monthly reporting procedures.
Finding 2024-001
FINDING No. 2024-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended December 31, 2024. Sample Size Information: All replacement reserve deposits for the year ended December 31, 2024. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, required monthly deposits must be made to the Project’s reserve for replacement account, as authorized by HUD. Statement of Condition: The Project overfunded the reserve for replacement account by $4,143. Cause: The Project overfunded the reserve for replacement account by depositing an extra monthly deposit in the amount of $3,043 and depositing an excess amount of $1,100 when taking corrective action for Finding 2023-002. Effect or Potential Effect: Overfunding of the reserve for replacement. Auditor Non-Compliance Code: N – Replacement Reserve Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted. Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month, verify the accuracy of any additional required deposits, and submit a form HUD-9250 to withdraw the excess funding. Response Indicator: Agree. Completion date: 12/31/2025 Response: The verification of the correct funding amounts is now confirmed against approved 9250 on a monthly basis, and is a step that has been added on the month-end close checklist.
Finding 2024-002
FINDING No. 2024-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Five former tenants. Sample Size Information: Three former tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, the owner must refund the full security deposit plus accrued interest and/or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant’s rights under HUD regulations and state and local laws within 30 days from move-out. Statement of Condition: The Project did not refund the security deposit plus accrued interest to one tenant within the required 30 days from tenant move-out. Cause: The Project did not follow state law and HUD regulations for refunding security deposits resulting in untimely refunds of security deposits. Effect or Potential Effect: The Project is not in compliance with HUD regulations and state laws requiring tenant security deposits to be refunded within 30 days of a tenant move out if no assessments are made against that tenant. Auditor Non-Compliance Code: M – Security Deposits Reporting Views of Responsible Officials:The Project agrees with the finding and the auditor’s recommendation has been adopted. Recommendation: The Project should comply with state law and HUD regulations for refunding security deposits timely. Response Indicator: Agree. Completion date: 09/25/2024 Response: Staff training has been provided and included in monthly reporting procedures.