FAC Explorer

Audit 415637

FY End
2026-03-31
Total Expended
$1.20M
Findings
2
Programs
2
Organization: Morse Elderly Housing Corporation (FL)
Year: 2026 Accepted: 2026-11-03
Auditor: BELLOWS ASSOCIATES P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1241597 2026-001 Material Weakness Yes B
1241598 2026-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY - CAPITAL ADVANCE $1.08M Yes 1
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY - PROJECT RENTAL ASSISTANCE CONTRACTS $115,893 Yes 1

Contacts

Name Title Type
L3TRWMP1GK49 Irene Phillips Auditee
9548359200 Jennifer R. Koffman Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Morse Elderly Housing Corporation, HUD Project No. 064-EE066, 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 Morse Elderly Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Morse Elderly Housing Corporation.
Morse Elderly Housing Corporation 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. Morse Elderly Housing Corporation received no additional loans during the year. The balance of the capital advance outstanding as of March 31, 2026 was $1,083,400.

Finding Details

Finding 2026-001
FINDING No. 2026-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: All disbursements for the year ended March 31, 2026. Sample Size Information: Twenty-five disbursements. Identification of Repeat Finding and Finding Reference Number: No. Criteria: All disbursements must be approved by personnel with the appropriate authorization level in accordance with the Project's approval policy prior to payment. Statement of Condition: Three disbursements totaling $28,662 were approved by a member of management whose approval authority was limited to transactions up to $1,000. Two disbursements exceeding $10,000 and one disbursement over $1,000. Cause: The accounting system allowed for the approval of invoices outside of established approval limits due to a system glitch. Effect or Potential Effect: Potential unauthorized use of Project funds. Auditor Non-Compliance Code: S – Internal control deficiencies. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation has been adopted. Recommendation: Management should ensure adherence to and the monitoring of established controls over cash disbursements. Response Indicator: Agree. Completion Date: 6/23/2025 Response: Staff training has been provided to ensure proper procedures are followed.
Finding 2026-002
FINDING No. 2026-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Utility costs. Sample Size Information: Annual utility allowance analysis. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the owner to submit an analysis of utility allowances with supporting documentation, to perform an annual review of tenant utility allowances to determine their reasonableness, and to adjust the allowances, when deemed appropriate. Statement of Condition: The reasonableness of tenant utility allowances was not assessed by management. Cause: Management did not perform an annual review of tenant utility allowances for the current year. Effect or Potential Effect: Depending on the results of the analysis, the tenants could be receiving the incorrect utility allowance. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted. Recommendation: The Project should implement procedures to comply with all applicable HUD regulations and ensure the annual utility allowance analysis is performed with supporting documentation retained. Response Indicator: Agree. Completion Date: 3/31/2027 Response: Staff training has been provided to ensure that annual reviews of tenant utility allowances are performed.