S3800-010 Finding Reference Number – 2025-001 S3800-011 Title and CFDA Number of Federal Program – Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 S3800-015 Type of Finding – Federal Award Finding; Other Matters S3800-016 Finding Resolution Status – In Process S3800-017 Information on Universe Population Size – 19 PRAC units S3800-018 Sample Size Information – 5 tenant files. Errors were found on 3 out of the 5 tenants tested. S3800-019 Identification of Repeat Finding and Finding Reference Number – 2024-001 S3800-020 Criteria – Per HUD Handbook 4350.3 Rev-1: Owners are responsible for obtaining the original signature of the head of household, spouse, any individual listed as co-head and all other adult members of the household on the HUD model lease and required lease attachments and addendums. The lease attachments include: move-in inspection report signed by both the Owner and tenant. There are also the optional following documents Owners are responsible for providing applicants the opportunity to complete: form HUD-27061-H, Race and Ethnic Data Reporting Form. In addition, the Owners must keep the following document in the tenant’s file at the project site: a copy of the EIV Income Report, along with the HUD-50059. S3800-030 Statement of Condition – During our audit, we noted one instance where management did not obtain the following optional document signed by the head of household during the move-in process: Race and Ethnic Data Reporting Form HUD-27061-H. We noted one instance where management did not sign the move-in inspection form. In addition, there was one instance where the move-in inspection form could not be located. In addition, we noted one instance where management did not sign the Form HUD-50059 for initial move-in. S3800-032 Cause – Management failed to obtain the appropriate signatures and maintain the original signed forms in the tenant’s file at the project site. There was turnover in the Property Manager position during the year ended September 30, 2025. S3800-033 Effect or Potential Effect – The procedures for maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3. This could result in units being rented to ineligible tenants or errors in rent subsidies paid by HUD. S3800-035 Auditor Non-Compliance Code – R (Section 8 Program Administration) S3800-037 FHA/Contract Number – 171-EE015 S3800-038 Questioned Costs – $0 S3800-040 Questioned Costs – $0 S3800-045 Reporting Views of Responsible Officials – Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented. S3800-050 Context – A sample of 5 tenant files were selected for testing from a population of 19 PRAC units. 3 out of the 5 tenant files did not contain the required completed forms. This was not a statistically valid sample. S3800-080 Recommendation – We recommend Sessions Village 202 obtain the missing signed documents if the tenant still resides at the project. In addition, we recommend Sessions Village 202 review all tenant files to ensure all other records are complete. Also, we recommend staff involved in the tenant move-in process review the requirements and revise their current process and procedures as needed to ensure the appropriate forms are completed correctly and kept in the tenant files going forward. Additional controls could include completing a checklist of required signed forms obtained during the move-in process, and/ or having a second individual check the file for completeness. S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations – In December 2025, the Property Manager obtained the missing signed documents for the tenants listed above. For one instance, the tenant had already moved out and no updated documentation could be obtained. The Property Manager will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward. S3800-130 Response Indicator – Agree S3800-140 Completion Date – September 30, 2026 S3800-150 Response – In December 2025, the Property Manager obtained the missing signed documents for the tenants listed above. For one instance, the tenant had already moved out and no updated documentation could be obtained. The Property Manager will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
S3800-010 Finding Reference Number – 2025-002 S3800-011 Title and CFDA Number of Federal Program – Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 S3800-015 Type of Finding – Federal Award Finding; Other Matters S3800-016 Finding Resolution Status – Resolved S3800-017 Information on Universe Population Size – N/A S3800-018 Sample Size Information – N/A S3800-019 Identification of Repeat Finding and Finding Reference Number – 2024-002 S3800-020 Criteria – Per the regulatory agreement Section 5(a) for a Project under the ALN 14.157, the Project is required to establish and maintain a reserve fund for replacements in a separate account. In addition, the Corporation is required to deposit an amount equal to $470.72 per month unless a different date or amount is approved in writing by HUD. S3800-030 Statement of Condition – During the year ended September 30, 2025, the Corporation underfunded the reserve for replacements by $5,630 S3800-032 Cause – During the year ended September 30, 2025, there was turnover in the accounts payable position. As a result, the deposits were not made during the year. S3800-033 Effect or Potential Effect – There are less funds available for capital repairs and improvements. S3800-035 Auditor Non-Compliance Code – N (Reserve for Replacement Deposits) S3800-037 FHA/Contract Number – 171-EE015 S3800-038 Questioned Costs – $0 S3800-040 Questioned Costs – $0 S3800-045 Reporting Views of Responsible Officials – Sessions Village 202 is in agreement with the finding. S3800-050 Context – During the year ended September 2025, no monthly recurring deposits were made into the account. S3800-080 Recommendation – We recommend Sessions Village 202 deposit the underfunded amount into the account. Also, we recommend management of Sessions Village 202 review their internal controls over the reserve for replacements deposit process with the necessary individuals involved in the process to ensure the appropriate deposits are made going forward. In addition, we recommend management review their monitoring controls to ensure a secondary review is conducted at least quarterly to ensure the appropriate deposits were made. S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations – In November 2025, the amount was deposited into the account. The Executive Director/Administrator and Accountant at the management agent reviewed the process and procedures in place with the new accounts payable clerk, and implemented controls to ensure the appropriate deposits are made going forward. S3800-130 Response Indicator – Agree S3800-140 Completion Date – November 13, 2025 S3800-150 Response – In November 2025, the amount was deposited into the account. The Executive Director/Administrator and Accountant at the management agent reviewed the process and procedures in place with the new accounts payable clerk, and implemented controls to ensure the appropriate deposits are made going forward.
S3800-010 Finding Reference Number – 2025-003 S3800-011 Title and CFDA Number of Federal Program – Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 S3800-015 Type of Finding – Federal Award Finding; Other Matters S3800-016 Finding Resolution Status – Resolved S3800-017 Information on Universe Population Size – N/A S3800-018 Sample Size Information – N/A S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A S3800-020 Criteria – Per the HUD Handbook 4350.1 REV-1, the Project is required to establish and maintain an insurance escrow in a separate account. In addition, the Corporation is required to deposit an amount equal to one-twelfth of insurance premiums per month unless a different date or amount is approved in writing by HUD. S3800-030 Statement of Condition – During the year ended September 30, 2025, the Corporation underfunded the insurance escrow by $174. S3800-032 Cause – During the year ended September 30, 2025, there was turnover in the accounts payable position. As a result, the monthly deposits stopped after May 2025. S3800-033 Effect or Potential Effect – There are less funds available for insurance payment when due. S3800-035 Auditor Non-Compliance Code – Z (Other) S3800-037 FHA/Contract Number – 171-EE015 S3800-038 Questioned Costs – $0 S3800-040 Questioned Costs – $0 S3800-045 Reporting Views of Responsible Officials – Sessions Village 202 is in agreement with the finding. S3800-050 Context – After May 2025, the monthly deposits into the insurance escrow stopped. A true-up payment was made in July 2025 to cover the remainder of the fiscal year, but the amount was short by $174. S3800-080 Recommendation – We recommend Sessions Village 202 deposit the underfunded amount into the account. Also, we recommend management of Sessions Village 202 review their internal controls over the insurance escrow deposit process with the necessary individuals involved in the process to ensure the appropriate deposits are made going forward. In addition, we recommend management review their monitoring controls to ensure a secondary review is conducted at least quarterly to ensure the appropriate deposits were made. S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations – In May 2026, the amount was deposited into the account. The Executive Director/Administrator and Accountant at the management agent reviewed the process and procedures in place with the new accounts payable clerk, and implemented controls to ensure the appropriate deposits are made going forward. S3800-130 Response Indicator – Agree S3800-140 Completion Date – May 28, 2026 S3800-150 Response – In May 2026, the amount was deposited into the account. The Executive Director/Administrator and Accountant at the management agent reviewed the process and procedures in place with the new accounts payable clerk, and implemented controls to ensure the appropriate deposits are made going forward.
S3800-010 Finding Reference Number – 2025-004 S3800-011 Title and CFDA Number of Federal Program – Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 S3800-015 Type of Finding – Federal Award Finding; Other Matters S3800-016 Finding Resolution Status – Resolved S3800-017 Information on Universe Population Size The total population was all disbursements from the bank accounts, 155 checks or transfers totaling $205,900. S3800-018 Sample Size Information The sample size was 40 disbursements totaling $60,503. Errors were found on 5 out of the 40 disbursements tested totaling $1,425. S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A S3800-020 Criteria – Per 2 CFR sections 200.302 and 200.303 of the Uniform Guidance, an entity must establish and maintain effective internal control over the federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and terms and conditions of the federal award. Allowable cost controls of Sessions Village 202 require the location and general ledger account coding to be written on each invoice to be reviewed by the Executive Director/ Administrator before the invoice is processed to be paid. In addition, all checks are required to have two signatures. S3800-030 Statement of Condition – During our audit, we noted four invoices whereby the amounts paid for by Sessions Village 202 did not match the split by location on the campus or the invoice was not for the business purpose of Sessions Village 202. This resulted in Sessions Village 202 paying for expenditures that were unrelated to the project. In addition, we noted one instance where the check only contained one signature. S3800-032 Cause – During the year ended September 30, 2025, there was turnover in the accounts payable position. As a result, errors were made during the cash disbursement process that were not caught by management’s review and monitoring procedures. S3800-033 Effect or Potential Effect – Failure to maintain effective internal controls over compliance with federal requirements increases the risk of unauthorized or unallowable transactions occurring. S3800-035 Auditor Non-Compliance Code –S (Internal Controls) S3800-037 FHA/Contract Number – 171-EE015 S3800-038 Questioned Costs – $0 S3800-040 Questioned Costs – $0 S3800-045 Reporting Views of Responsible Officials – Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented. S3800-050 Context A sample of 40 checks totaling $60,503 was selected for audit from a population of 155 checks totaling $205,900. The test found 5 checks that were not in compliance with Sessions Village 202’s allowable cost controls totaling $1,425. Our sample was a statistically valid sample. S3800-080 Recommendation – We recommend the related parties reimburse Sessions Village 202 for the expenditures paid on their behalf. In addition, we recommend management review the disbursements made during the periods of turnover to confirm there were no other unallowable payments made. We also recommend management of Sessions Village 202 review their internal controls over the cash disbursement process with the necessary individuals involved in the process to ensure the controls are consistently performed going forward. S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations – The related parties reimbursed Sessions Village 202 for the expenditures paid on their behalf. Since the new accounts payable clerk started in the Summer of 2025, they have been reviewing all of the supporting documentation for disbursements made during the period of turnover, and accumulating any additional corrections that need to be made. They will continue this process for all disbursements from the period of turnover. The Executive Director/Administrator and Accountant at the management agent will review the process and procedures in place with the new accounts payable clerk, and implement controls to ensure the appropriate facility and general ledger account coding are made going forward. In addition, they will review the review and monitoring controls in place and revise as needed to ensure the proper checks are in place to catch errors. S3800-130 Response Indicator – Agree S3800-140 Completion Date – June 11, 2026 S3800-150 Response – The related parties reimbursed Sessions Village 202 for the expenditures paid on their behalf. Since the new accounts payable clerk started in the Summer of 2025, they have been reviewing all of the supporting documentation for disbursements made during the period of turnover, and accumulating any additional corrections that need to be made. They will continue this process for all disbursements from the period of turnover. The Executive Director/Administrator and Accountant at the management agent will review the process and procedures in place with the new accounts payable clerk, and implement controls to ensure the appropriate facility and general ledger account coding are made going forward. In addition, they will review the review and monitoring controls in place and revise as needed to ensure the proper checks are in place to catch errors.
S3800-010 Finding Reference Number – 2025-005 S3800-011 Title and CFDA Number of Federal Program – Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 S3800-015 Type of Finding – Federal Award Finding; Other Matters S3800-016 Finding Resolution Status – In Process S3800-017 Information on Universe Population Size – N/A S3800-018 Sample Size Information – N/A S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A S3800-020 Criteria – Per the regulatory agreement Section 11(f) for a Project under the ALN 14.157, the Project is required to submit the audited financial statements to HUD within 90 days of a Project’s fiscal year end. S3800-030 Statement of Condition – Sessions Village 202 did not meet the HUD financial statement filing requirements during the year ended September 30, 2025, for the submission of the 2024 audit. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements. S3800-032 Cause – Sessions Village 202 was not able to meet the HUD financial statement filing deadline during the year ended September 30, 2025, for the submission of the 2024 audit. S3800-033 Effect or Potential Effect – HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement. S3800-035 Auditor Non-Compliance Code – Z (Other) S3800-037 FHA/Contract Number – 171-EE015 S3800-038 Questioned Costs – $0 S3800-040 Questioned Costs – $0 S3800-045 Reporting Views of Responsible Officials – Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented. S3800-080 Recommendation – We recommend Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations – On February 8, 2025, the audit was submitted to HUD through REAC. The Executive Director/Administrator and Accountant at the management agent will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward. S3800-130 Response Indicator – Agree S3800-140 Completion Date – December 31, 2026 S3800-150 Response – On February 8, 2025, the audit was submitted to HUD through REAC. The Executive Director/Administrator and Accountant at the management agent will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward. S3800-160 Contact Person First Name – John S3800-180 Contact Person Last Name – Gannon