FAC Explorer

Audit 44080

FY End
2022-12-31
Total Expended
$1.70M
Findings
2
Programs
2
Organization: Elizabeth James Senior Housing (WA)
Year: 2022 Accepted: 2023-04-12
Auditor: Clark Nuber P S

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42615 2022-001 Significant Deficiency - N
619057 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.151 Supplemental Loan Insurance_multifamily Rental Housing $1.28M Yes 1
14.195 Section 8 Housing Assistance Payments Program $416,494 - 0

Contacts

Name Title Type
EVYMXV8Z32E9 Leslie Woodworth Auditee
2062043820 Troy Rector Auditor
No contacts on file

Notes to SEFA

Title: Note 3 Loans Outstanding Accounting Policies: Note 1 Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of ElizabethJames Senior Housing, HUD Project Number 12735021 (the Organization) for the year ended December 31, 2022. Theinformation in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (theUniform Guidance). The Schedule presents only a selected portion of the operations of the Organization. It is not intendedto and does not present the financial position, changes in net assets, or cash flows of the Organization.Note 2 Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognizedfollowing the requirements contained in the Uniform Guidance. The Organization did not receive assistance during the yearin which the de minimis indirect cost rate would have been allowed to be applied. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization had the following loan balance outstanding at December 31, 2022. The loan balance outstanding atJanuary 1, 2022 is included in the federal expenditures presented in the Schedule.See table in the Single Audit report.

Finding Details

Finding 2022-001
Significant deficiency in internal controls over special tests and provisions related to the residual receipts reserve account and an instance of noncompliance with the special test and provision requirements over the residual receipts reserve account. Federal Agency: United States Department of Housing and Urban Development Assistance Listing Number/Title: 14.151/ Supplemental Loan Insurance - Multifamily Rental Housing Award Number: 127-35021 Award Period: January 1, 1995 through December 31, 2044 Criteria In accordance with Code of Federal Regulations (CFR) 891.405(b), the Owner shall make deposits to the residual receipt reserve in an amount determined by HUD and cashflows. Condition/Context for Evaluation HUD had determined that a deposit to the residual receipt reserve of $83,818 were required during the fiscal year. As part of our audit testing, it was identified that the required month deposits had not been made. Questioned Costs Not applicable. Effect or Potential Effect The Organization is out of compliance with the residual receipt reserve requirements and the residual receipt reserve has not been funded with the required deposit of $83,818 as of December 31, 2022. Cause The Organization?s internal controls over compliance did not operate effectively to ensure that all required reserve deposits were made. Repeat Finding Not applicable as no similar finding was noted in the prior year audit of the Organization. Recommendation We recommend the Organization strengthen its internal control processes to ensure that all residual replacement reserve deposits are made. Views of Responsible Officials and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2022-001
Significant deficiency in internal controls over special tests and provisions related to the residual receipts reserve account and an instance of noncompliance with the special test and provision requirements over the residual receipts reserve account. Federal Agency: United States Department of Housing and Urban Development Assistance Listing Number/Title: 14.151/ Supplemental Loan Insurance - Multifamily Rental Housing Award Number: 127-35021 Award Period: January 1, 1995 through December 31, 2044 Criteria In accordance with Code of Federal Regulations (CFR) 891.405(b), the Owner shall make deposits to the residual receipt reserve in an amount determined by HUD and cashflows. Condition/Context for Evaluation HUD had determined that a deposit to the residual receipt reserve of $83,818 were required during the fiscal year. As part of our audit testing, it was identified that the required month deposits had not been made. Questioned Costs Not applicable. Effect or Potential Effect The Organization is out of compliance with the residual receipt reserve requirements and the residual receipt reserve has not been funded with the required deposit of $83,818 as of December 31, 2022. Cause The Organization?s internal controls over compliance did not operate effectively to ensure that all required reserve deposits were made. Repeat Finding Not applicable as no similar finding was noted in the prior year audit of the Organization. Recommendation We recommend the Organization strengthen its internal control processes to ensure that all residual replacement reserve deposits are made. Views of Responsible Officials and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.