Audit 406594

FY End

2022-12-31

Total Expended

$6.86M

Findings

Programs

Organization: DELRIDGE NEIGHBORHOODS DEVELOPMENT ASSOCIATION (WA)

Year: 2022 Accepted: 2026-07-07

Auditor: CLARK NUBER PS

Organization Exclusion Status:

Checking exclusion status...

Findings

ID	Ref	Severity	Repeat	Requirement
1223025	2022-002	Material Weakness	Yes	E
1223026	2022-002	Material Weakness	Yes	E
1223027	2022-002	Material Weakness	Yes	E
1223028	2022-002	Material Weakness	Yes	E
1223029	2022-002	Material Weakness	Yes	E

Programs

ALN	Program	Spent	Major	Findings
14.239	HOME INVESTMENT PARTNERSHIPS PROGRAM	$594,167	Yes	1
14.218	COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS	$391,000	Yes	0

Contacts

Name	Title	Type
GNAKQ6THDWQ9	Shannon Woodard	Auditee
2069352999	Joseph Purvis	Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Delridge Neighborhood Development Association (the Organization) under 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.

Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

The Organization had the following Federal loan balances outstanding at December 31, 2022. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at December 31, 2022 consists of: Community Development Block Grant (CDBG) Entitlement Program 14.218: $1,351,292 and Community Development Block Grant (CDBG) Entitlement Program14.218: $1,298,708

Finding Details

Finding 2022-002

Finding 2022-002 Significant deficiency in internal controls over compliance with eligibility requirements. Identification of the Federal Program Federal Agency: U.S. Department of Housing and Urban Development Program Title: HOME Investment Partnership Program Assistance Listing Number: 14.239 Award Numbers: N/A Award Periods: November 2000 - January 2055 Criteria Per CFR 92.252(a), the rent for a HOME-assisted unit must not exceed the rent limits published by the HUD on an annual basis. The rent limits apply to the rent plus the utilities or utility allowance. If a low-income family is participating in a program where the family pays as a contribution toward rent no more than 30 percent of the family's monthly adjusted income or 10 percent of the family's monthly income, then the maximum rent due from the family is the family's contribution. Condition/Context During our testing a tenant was identified as having been certified to have $0 monthly household income but was paying $44/month in rental charges. As a result, the tenant was charged in excess of allowable rent based on the HOME programs requirements. The requirements being that the maximum rent being charged to the tenant not exceed 30% of total household income, which in this case was $0. The error was a result of the unit not being properly identified as a HOME assisted unit on the certification form. Effect/Potential Effect The tenant (beneficiary) was not provided their full eligibly benefits under the program. Cause During the year ending December 31, 2022 internal controls were not implemented to ensure the information included on the Household Eligibility Certification form for the tenant was accurate, resulting in the unit not being identified as a HOME assisted unit causing an under allocation of eligible benefits to the tenant. Repeat Finding N/A Recommendation We recommend management verify controls are implemented to ensure all information included on the Household Eligibility Certification forms is accurate. Views of Responsible Officials Management agrees with the finding and has provided the corrective action plan following the Single Audit Report.