FAC Explorer

Audit 37520

FY End
2022-03-31
Total Expended
$4.49M
Findings
4
Programs
2
Organization: Mayfield Manor II (FL)
Year: 2022 Accepted: 2022-12-12
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
39931 2022-002 - - B
39932 2022-001 Significant Deficiency Yes E
616373 2022-002 - - B
616374 2022-001 Significant Deficiency Yes E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $4.27M Yes 1
14.157 Supportive Housing for the Elderly - Project Rental Assitance Contracts $216,938 Yes 1

Contacts

Name Title Type
X673QFX5GVG5 Irene Phillips Auditee
9548359200 Jennifer R. Koffman Auditor
No contacts on file

Notes to SEFA

Title: NOTE C - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal award activity of National Steelworkers Oldtimers Community Urban Development Company of Canton Two, Inc., operating as Mayfield Manor II, HUD Project No. 042-EE027, 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 National Steelworkers Oldtimers Community Urban Development Company of Canton Two, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of National Steelworkers Oldtimers Community Urban Development Company of Canton Two, Inc. NOTE B - SUMMARY OF SIGNIFICANT 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: National Steelworkers Oldtimers Community Urban Development Company of Canton Two, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. National Steelworkers Oldtimers Community Urban Development Company of Canton Two, 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. National Steelworkers Oldtimers Community Urban Development Company of Canton Two, Inc. received no additional loans during the year. The balance of the capital advance outstanding at March 31, 2022 is $4,274,700.

Finding Details

Finding 2022-002
FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All management fee expenses. Sample Size Information: All management fee expenses. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD. The Project shall only use funds as specified in the Regulatory Agreement and owes the management company fees at the rate specified in the Project Owner?s/Management Agent?s Certification (Form HUD-9839-B). Statement of Condition: The Project has been overcharged management fees, resulting in an unauthorized loan to the Management Company. Cause: The Project did not comply with HUD regulations as it relates to the condition listed above. Effect or Potential Effect: The Project has made an unauthorized loan to the management company as a result of overpaying management fees of $2,972. Auditor Non-Compliance Code: J ? Unauthorized Management Fees. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to monitor the calculation of management fees. Response Indicator: Agree. Completion Date: 3/31/2023 Response: Going forward there will be a monthly analysis of management fees.
Finding 2022-001
FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Seventy-three tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001. Criteria: HUD regulation requires timely verification of initial income through the use of Enterprise Income Verification (EIV) reports. Statement of Condition: The Project did not perform and/or maintain the initial EIV for seven tenants. Cause: The Project did not comply with HUD regulations as it relates to the condition listed above. Effect or Potential Effect: The Project is noncompliant with the income verification process. Auditor Non-Compliance Code: R ? Section 8 Program Admin. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: Management should verify initial tenant income through the EIV system in a timely manner and maintain verification in the tenant files. Response Indicator: Agree Completion Date: 3/31/2023 Response: Due to a change in staff the project was not able to perform file reviews on all tenants. Going forward, the regional director will ensure the files are adequately maintained.
Finding 2022-002
FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All management fee expenses. Sample Size Information: All management fee expenses. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD. The Project shall only use funds as specified in the Regulatory Agreement and owes the management company fees at the rate specified in the Project Owner?s/Management Agent?s Certification (Form HUD-9839-B). Statement of Condition: The Project has been overcharged management fees, resulting in an unauthorized loan to the Management Company. Cause: The Project did not comply with HUD regulations as it relates to the condition listed above. Effect or Potential Effect: The Project has made an unauthorized loan to the management company as a result of overpaying management fees of $2,972. Auditor Non-Compliance Code: J ? Unauthorized Management Fees. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to monitor the calculation of management fees. Response Indicator: Agree. Completion Date: 3/31/2023 Response: Going forward there will be a monthly analysis of management fees.
Finding 2022-001
FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Seventy-three tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001. Criteria: HUD regulation requires timely verification of initial income through the use of Enterprise Income Verification (EIV) reports. Statement of Condition: The Project did not perform and/or maintain the initial EIV for seven tenants. Cause: The Project did not comply with HUD regulations as it relates to the condition listed above. Effect or Potential Effect: The Project is noncompliant with the income verification process. Auditor Non-Compliance Code: R ? Section 8 Program Admin. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: Management should verify initial tenant income through the EIV system in a timely manner and maintain verification in the tenant files. Response Indicator: Agree Completion Date: 3/31/2023 Response: Due to a change in staff the project was not able to perform file reviews on all tenants. Going forward, the regional director will ensure the files are adequately maintained.