Audit 38691

FY End
2022-12-31
Total Expended
$7.10M
Findings
2
Programs
6
Year: 2022 Accepted: 2023-09-05
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
42514 2022-002 - - N
618956 2022-002 - - N

Programs

ALN Program Spent Major Findings
21.023 Emergency Rental Assistance Program $4.98M Yes 0
14.239 Home Investment Partnerships Program $1.80M Yes 1
21.U02 Expendable Grants $185,250 - 0
21.U03 Capital Grants $87,500 - 0
21.U01 Expendable Grants $42,620 - 0
14.275 Housing Trust Fund $3,924 - 0

Contacts

Name Title Type
N3NVQXKJXDB6 Tom Cruess Auditee
2035624514 Patricia E. McGowan 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. Pass-through entity identifying numbers are presented when available. De Minimis Rate Used: N Rate Explanation: Mutual Housing Association of South Central Connecticut, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Mutual Housing Association of South Central Connecticut, Inc. and Affiliates under various programs of the federal government for the year ended December 31, 2022. 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 Mutual Housing Association of South Central Connecticut, Inc. and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Mutual Housing Association of South Central Connecticut, Inc. and Affiliates.
Title: Loan programs 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. Pass-through entity identifying numbers are presented when available. De Minimis Rate Used: N Rate Explanation: Mutual Housing Association of South Central Connecticut, Inc. has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. In accordance with the Uniform Guidance, the notes to the Schedule shall include loans and loan activities. The following is a summary of the various loan program activity for the year ended December 31, 2022: HOME Investment Partnerships Program (FAL# 14.239) Valley Mutual: Issue Date: 6/17/04; Interest Rate: 0%; Original Amount: $636,743; beginning Balance: $636,743; Issued: -; Retired: -; Ending Balance: $636,743. Hill Housing: Issue Date: 9/16/13; Interest Rate: 3%; Original Amount: $700,000; beginning Balance: $700,000; Issued: -; Retired: -; Ending Balance: $700,000. Waterbury Community Investments: Issue Date: 9/29/17; Interest Rate: 0%; Original Amount: $500,000; beginning Balance: $441,213; Issued: -; Retired: -; Ending Balance: $441,213.

Finding Details

Finding 2022-002: Information on the Federal Program Assistance Listing Number 14.239-HOME Investment Partnerships Program, United States Department of Housing and Urban Development. Pass-Through Entity: State of Connecticut Department of Housing. Award Number 20020020010579163A. Compliance Requirement: Eligibility. Type of Finding: Immaterial Noncompliance Identification as a Repeat Finding This is not a repeat finding. Criteria The HOME program has income targeting requirements. Only low-income or very low-income persons, as defined in 24 CFR section 92.2, can receive housing assistance (24 CFR section 92.1). Therefore, the participating jurisdiction must determine if each family is income eligible by determining the family?s annual income, including all persons in the household, as provided for in 24 CFR section 92.203. Participating jurisdictions must maintain records for each family assisted (24 CFR section 92.508). Condition For the year ended December 31, 2022, management was unable to obtain the required information to perform the annual recertification from the tenant. Context One tenant out of eight tested did not timely provide the annual recertification documents. The sample was not statistically valid. Cause The tenant failed to respond to requests from management and therefore, went into eviction status. Effect or Potential Effect As a result, Mutual Housing Association of South Central Connecticut, Inc. and Affiliates is not in compliance with the HOME program requirements. Questioned Costs None. Recommendation Management should establish procedures to ensure that required tenant documents and information is obtained timely to perform annual recertifications. Views of Responsible Official Management disagrees with the finding because we followed protocol multiple times to get the tenant to complete his recertification. The tenant finally responded when he was placed in eviction status.
Finding 2022-002: Information on the Federal Program Assistance Listing Number 14.239-HOME Investment Partnerships Program, United States Department of Housing and Urban Development. Pass-Through Entity: State of Connecticut Department of Housing. Award Number 20020020010579163A. Compliance Requirement: Eligibility. Type of Finding: Immaterial Noncompliance Identification as a Repeat Finding This is not a repeat finding. Criteria The HOME program has income targeting requirements. Only low-income or very low-income persons, as defined in 24 CFR section 92.2, can receive housing assistance (24 CFR section 92.1). Therefore, the participating jurisdiction must determine if each family is income eligible by determining the family?s annual income, including all persons in the household, as provided for in 24 CFR section 92.203. Participating jurisdictions must maintain records for each family assisted (24 CFR section 92.508). Condition For the year ended December 31, 2022, management was unable to obtain the required information to perform the annual recertification from the tenant. Context One tenant out of eight tested did not timely provide the annual recertification documents. The sample was not statistically valid. Cause The tenant failed to respond to requests from management and therefore, went into eviction status. Effect or Potential Effect As a result, Mutual Housing Association of South Central Connecticut, Inc. and Affiliates is not in compliance with the HOME program requirements. Questioned Costs None. Recommendation Management should establish procedures to ensure that required tenant documents and information is obtained timely to perform annual recertifications. Views of Responsible Official Management disagrees with the finding because we followed protocol multiple times to get the tenant to complete his recertification. The tenant finally responded when he was placed in eviction status.