FAC Explorer

Audit 43792

FY End
2022-12-31
Total Expended
$2.85M
Findings
8
Programs
2
Organization: Triangle Elderly Housing Corporation (NC)
Year: 2022 Accepted: 2023-09-21
Auditor: O Douglas Covington CPA PA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43754 2022-001 - - FN
43755 2022-003 - - N
43756 2022-004 - - FN
43757 2022-002 - - EN
620196 2022-001 - - FN
620197 2022-003 - - N
620198 2022-004 - - FN
620199 2022-002 - - EN

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.52M Yes 3
14.195 Section 8 Housing Assistance Payments Program $329,638 Yes 1

Contacts

Name Title Type
E88GFF7XTFB5 Sandy Godwin Auditee
9199346066 O. Douglas Covington Auditor
No contacts on file

Notes to SEFA

Title: Note C Section 223(f) Loan Accounting Policies: Note A Basis of Presentation:The accompanying schedule of expenditures of federal awards includes the federal grant activity of Triangle Elderly Housing Corporation 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 Triangle Elderly Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Triangle Elderly Housing Corporation. Note B Summary of Significant 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Triangle Elderly Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Triangle Elderly Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance. The Section 223(f) Loan represents the outstanding balance as of the balance sheet date. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Triangle Elderly Housing Corporation received no additional loans during the year. The balance of the loan outstanding at December 31, 2022, consists of:Asst. Listing Number: 14.155Program Name: Section 223(f) LoanOutstanding Balance December 31, 2022: $2,456,627

Finding Details

Finding 2022-001
Finding 2022-001 Finding Resolution Status: In Progress Population Size: 74 Sample Size: 5 Noncompliance Information: I tested five tenant recertification files and found noncompliance in five files. Condition: The annual physical unit inspections were not completed during the year. Criteria: HUD rules and regulations require that the Project complete physical unit inspections once a year and keep the documentation in the tenant file. Effect: The Project was not in compliance with HUD rules and regulations. Cause: Management oversight. Recommendation: Management should do annual unit physical inspections and keep the documentation in the tenant files. Questioned Costs: -0-
Finding 2022-003
Finding 2022-003 Finding Resolution Status: Resolved Population Size: 20 Sample Size: 4 Noncompliance Information: I tested four tenant move-out files and found noncompliance in two files. Condition: The tenant security deposit for units 516-C and 604-A were not refunded within thirty days. Criteria: HUD requires tenant security deposits be refunded within 30 days, or the statute set by the state, whichever is shorter. Effect: The tenant security deposit was not refunded within the required time frame. Cause: Management oversight. Recommendation: Management should establish procedures to make sure to refund all security deposits within the thirty-day time frame. Questioned Costs: -0-
Finding 2022-004
Finding 2022-004 Finding Resolution Status: Resolved Population Size: N/A Sample Size: N/A Condition: Management was unable to locate the preventative maintenance schedule documentation during my audit. Criteria: HUD rules and regulations require that preventative maintenance schedules be properly documented and maintained. Effect: Without proper documentation and scheduling, preventative maintenance may be overlooked. Cause: Management agent oversight. Recommendation: The management agent should establish procedures to maintain the preventative maintenance schedules in a designated location. If the preventative maintenance schedules cannot be located, new schedules should be prepared and documented. Questioned Costs: N/A
Finding 2022-002
Finding 2022-002 Finding Resolution Status: Resolved Population Size: 12 Sample Size: 12 Noncompliance Information: I tested 12 months of monthly EIV?s and found non-compliance in 6 months. Condition: Management agent did not maintain the New Hires report, Multiple Subsidy report, Identity Verification report and Deceased Tenant report for March, April, June, July, October and November. Criteria: HUD rules and regulations require that the management agent download and review for discrepancies the New Hires, Multiple Subsidy, Deceased Tenant and Identity Verification reports on a monthly basis. Effect: The Project was not in compliance with HUD rules and regulations. Cause: Management agent oversight. Recommendation: The management agent should establish procedures to make sure all required monthly EIV reports are maintained and any discrepancies reflected on the EIV report be resolved and documented. Questioned Costs: -0-
Finding 2022-001
Finding 2022-001 Finding Resolution Status: In Progress Population Size: 74 Sample Size: 5 Noncompliance Information: I tested five tenant recertification files and found noncompliance in five files. Condition: The annual physical unit inspections were not completed during the year. Criteria: HUD rules and regulations require that the Project complete physical unit inspections once a year and keep the documentation in the tenant file. Effect: The Project was not in compliance with HUD rules and regulations. Cause: Management oversight. Recommendation: Management should do annual unit physical inspections and keep the documentation in the tenant files. Questioned Costs: -0-
Finding 2022-003
Finding 2022-003 Finding Resolution Status: Resolved Population Size: 20 Sample Size: 4 Noncompliance Information: I tested four tenant move-out files and found noncompliance in two files. Condition: The tenant security deposit for units 516-C and 604-A were not refunded within thirty days. Criteria: HUD requires tenant security deposits be refunded within 30 days, or the statute set by the state, whichever is shorter. Effect: The tenant security deposit was not refunded within the required time frame. Cause: Management oversight. Recommendation: Management should establish procedures to make sure to refund all security deposits within the thirty-day time frame. Questioned Costs: -0-
Finding 2022-004
Finding 2022-004 Finding Resolution Status: Resolved Population Size: N/A Sample Size: N/A Condition: Management was unable to locate the preventative maintenance schedule documentation during my audit. Criteria: HUD rules and regulations require that preventative maintenance schedules be properly documented and maintained. Effect: Without proper documentation and scheduling, preventative maintenance may be overlooked. Cause: Management agent oversight. Recommendation: The management agent should establish procedures to maintain the preventative maintenance schedules in a designated location. If the preventative maintenance schedules cannot be located, new schedules should be prepared and documented. Questioned Costs: N/A
Finding 2022-002
Finding 2022-002 Finding Resolution Status: Resolved Population Size: 12 Sample Size: 12 Noncompliance Information: I tested 12 months of monthly EIV?s and found non-compliance in 6 months. Condition: Management agent did not maintain the New Hires report, Multiple Subsidy report, Identity Verification report and Deceased Tenant report for March, April, June, July, October and November. Criteria: HUD rules and regulations require that the management agent download and review for discrepancies the New Hires, Multiple Subsidy, Deceased Tenant and Identity Verification reports on a monthly basis. Effect: The Project was not in compliance with HUD rules and regulations. Cause: Management agent oversight. Recommendation: The management agent should establish procedures to make sure all required monthly EIV reports are maintained and any discrepancies reflected on the EIV report be resolved and documented. Questioned Costs: -0-