FAC Explorer

Audit 42288

FY End
2022-12-31
Total Expended
$3.24M
Findings
2
Programs
2
Organization: Community Housing Iii, Inc. Fir Grove Apartments (OR)
Year: 2022 Accepted: 2023-04-26
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
49627 2022-001 Significant Deficiency - E
626069 2022-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $42,238 - 0
14.157 Supportive Housing for the Elderly $7,790 Yes 0

Contacts

Name Title Type
NVP8F3CP3NK1 Daniel Valliere Auditee
5035192033 Karen Smith Auditor
No contacts on file

Notes to SEFA

Title: Note 3 - U.S. Department of Housing and Urban Development Loan Program Accounting Policies: Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Community Housing III, Inc., (the "Company") 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 Community Housing III, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Community Housing III, Inc. De Minimis Rate Used: N Rate Explanation: Note 2 - Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations." And the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Community Housing III, Inc. has elected not to use the 10-percent de minimis indirect cost rateallowed under the Uniform Guidance. Community Housing III, Inc. has received U.S. Department of Housing and Urban Development loans under Section 202. The loan balances outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. Community Housing III, Inc. received no additional loans during the year ended December 31, 2022. The balance of the loans outstanding at December 31, 2022 consists of: 14.157 Section 202 Capital Advance $3,065,900; 14.239 HOME Investment Partnership Program.

Finding Details

Finding 2022-001
Finding No. 2022-001; Federal Assistance Listing Number 14.157 Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition In connection with our lease file review, we noted one out of three tenants did not have a recertification performed timely or the income verification with the use of the HUD Enterprise Income Verification ("EIV") performed timely. Cause The project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Context One out of three tenants did not have the EIV, or recertification performed timely. Repeat Finding No Questioned Costs N/A Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Auditor Noncompliance Code: E-Eligibility for Uniform Guidance; R-Section 8 program administration Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions Due to either tenant non-compliance or challenges with scheduling meetings with tenants or obtaining verifications, some recertifications were completed late. REACH has policies in place to complete recertifications timely, and will be providing ongoing training and guidance to staff to make sure the policies are being followed.
Finding 2022-001
Finding No. 2022-001; Federal Assistance Listing Number 14.157 Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition In connection with our lease file review, we noted one out of three tenants did not have a recertification performed timely or the income verification with the use of the HUD Enterprise Income Verification ("EIV") performed timely. Cause The project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Context One out of three tenants did not have the EIV, or recertification performed timely. Repeat Finding No Questioned Costs N/A Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Auditor Noncompliance Code: E-Eligibility for Uniform Guidance; R-Section 8 program administration Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions Due to either tenant non-compliance or challenges with scheduling meetings with tenants or obtaining verifications, some recertifications were completed late. REACH has policies in place to complete recertifications timely, and will be providing ongoing training and guidance to staff to make sure the policies are being followed.