FAC Explorer

Audit 365868

FY End
2024-12-31
Total Expended
$4.51M
Findings
4
Programs
3
Organization: Senior Citizens Housing Development Corporation of Washington (FL)
Year: 2024 Accepted: 2025-09-09
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
575949 2024-001 - - N
575950 2024-002 - Yes N
1152391 2024-001 - - N
1152392 2024-002 - Yes N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.50M Yes 2
14.195 Project-Based Rental Assistance (pbra) $920,081 - 0
14.191 Multifamily Housing Service Coordinators $82,427 - 0

Contacts

Name Title Type
GZNJWJH4DK65 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 Washington 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 Washington, HUD Project No. 000-11202, 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 Washington, 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 Washington.
Title: U.S. DEPARTMENT OF HUD REFINANCE PROGRAM 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 Washington has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Senior Citizens Housing Development Corporation of Washington has received a U.S. Department of Housing and Urban Development Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects loan 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 Washington received no additional loans during the year. The balance of the loan outstanding as of December 31, 2024 was $3,399,464.

Finding Details

Finding 2024-001
FINDING No. 2024-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended December 31, 2024. Sample Size Information: Required replacement reserve deposits for the year ended December 31, 2024. Identification of Repeat Finding and Finding Reference Number: No. Criteria: Increases to the monthly deposits must be accompanied by an approved form HUD-9250. Statement of Condition: The Project overfunded the account by $800 as a result of implementing an increase to the replacement reserve account without an authorized form HUD-9250. Cause: The Project did not obtain a funding increase in a timely manner and a lump sum deposit was made at year end without HUD’s authorization. Effect or Potential Effect: Overfunded reserve for replacement. Auditor Non-Compliance Code: N – Reserve for Replacements Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should implement the following procedures regarding its replacement reserve account: the correct authorized amount is deposited each month, requests for increases to the replacement reserve are submitted timely, and an executed approval with HUD’s signature is maintained. Response Indicator: Agree. Completion Date: 12/31/2025 Response: Staff training has been provided with additional HUD training to make sure a signed 9250 is in the file before making any increased deposit.
Finding 2024-002
FINDING No. 2024-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: The insurance and escrow tax account. Sample Size Information: All insurance and tax escrow deposits. Identification of Repeat Finding and Finding Reference Number: Yes, 2023-001 Criteria: Per HUD guidelines, the Project may not excessively fund its escrow accounts. Statement of Condition: Although the Project remains tax-exempt, continued funding to the tax escrow accounts was noted during the audit period, and it was determined that insurance and tax escrows were excessively funded by $9,722. Cause: The Project maintained excessive deposits in the insurance and tax escrow accounts totaling $9,722. Effect or Potential Effect: The Project is unable to utilize excess funding to satisfy current operating obligations. Auditor Non-Compliance Code: S – Internal Control Deficiencies. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted. Recommendation: The Project should make the appropriate transfers out of the insurance and tax escrow accounts to remedy the overfunding and perform regular analysis to ensure that funding is adequate but not excessive. Response Indicator: Agree. Completion Date: 12/31/2025 Response: The verification of the correct funding amounts is now confirmed on a monthly basis and has been added to the monthly close checklist.
Finding 2024-001
FINDING No. 2024-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended December 31, 2024. Sample Size Information: Required replacement reserve deposits for the year ended December 31, 2024. Identification of Repeat Finding and Finding Reference Number: No. Criteria: Increases to the monthly deposits must be accompanied by an approved form HUD-9250. Statement of Condition: The Project overfunded the account by $800 as a result of implementing an increase to the replacement reserve account without an authorized form HUD-9250. Cause: The Project did not obtain a funding increase in a timely manner and a lump sum deposit was made at year end without HUD’s authorization. Effect or Potential Effect: Overfunded reserve for replacement. Auditor Non-Compliance Code: N – Reserve for Replacements Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should implement the following procedures regarding its replacement reserve account: the correct authorized amount is deposited each month, requests for increases to the replacement reserve are submitted timely, and an executed approval with HUD’s signature is maintained. Response Indicator: Agree. Completion Date: 12/31/2025 Response: Staff training has been provided with additional HUD training to make sure a signed 9250 is in the file before making any increased deposit.
Finding 2024-002
FINDING No. 2024-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: The insurance and escrow tax account. Sample Size Information: All insurance and tax escrow deposits. Identification of Repeat Finding and Finding Reference Number: Yes, 2023-001 Criteria: Per HUD guidelines, the Project may not excessively fund its escrow accounts. Statement of Condition: Although the Project remains tax-exempt, continued funding to the tax escrow accounts was noted during the audit period, and it was determined that insurance and tax escrows were excessively funded by $9,722. Cause: The Project maintained excessive deposits in the insurance and tax escrow accounts totaling $9,722. Effect or Potential Effect: The Project is unable to utilize excess funding to satisfy current operating obligations. Auditor Non-Compliance Code: S – Internal Control Deficiencies. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted. Recommendation: The Project should make the appropriate transfers out of the insurance and tax escrow accounts to remedy the overfunding and perform regular analysis to ensure that funding is adequate but not excessive. Response Indicator: Agree. Completion Date: 12/31/2025 Response: The verification of the correct funding amounts is now confirmed on a monthly basis and has been added to the monthly close checklist.