FAC Explorer

Audit 44251

FY End
2022-12-31
Total Expended
$1.70M
Findings
2
Programs
1
Organization: Powell Boulevard Apartments, Inc. (OR)
Year: 2022 Accepted: 2023-04-26
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
44033 2022-001 Significant Deficiency Yes E
620475 2022-001 Significant Deficiency Yes E

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.69M Yes 1

Contacts

Name Title Type
TRLZGAA49LW8 Daniel Valliere Auditee
5035192033 Karen Smith Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1 - Basis of presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Powell Boulevard Apartments, Inc. (the "Company") under programs of 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the "Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of the Company, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company. 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. Powell Boulevard Apartments, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1615500.

Finding Details

Finding 2022-001
Finding No. 2022-001; Federal Assistance Listing Number 14.181 Statement of Condition In connection with our lease file review, we noted that: 1. One out of two tenants recertifications was not performed timely; and 2. One out of two tenants recertifications was not signed by the agent. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Cause Management's policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant recertification eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs N/A Context One of two tenants tested did not have a timely recertification performed and one of two tenants' recertifications were not signed by the agent. Repeat Finding Yes Recommendations Management should establish procedures and monitor compliance with those procedures to insure that recertifications are performed timely and signed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: E-Eligibility; R-Section 8 Program Administration Findings Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Action: We will issue continuous communication to tenants to seek compliance. REACH continues to employ a compliance team to review files and provide support and training to property management staff on income verification and signing and filing of documents. This is an area of continuous improvement. When errors or missing items are identified, they are being corrected and impact of noncompliance communicated to tenant.
Finding 2022-001
Finding No. 2022-001; Federal Assistance Listing Number 14.181 Statement of Condition In connection with our lease file review, we noted that: 1. One out of two tenants recertifications was not performed timely; and 2. One out of two tenants recertifications was not signed by the agent. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Cause Management's policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant recertification eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs N/A Context One of two tenants tested did not have a timely recertification performed and one of two tenants' recertifications were not signed by the agent. Repeat Finding Yes Recommendations Management should establish procedures and monitor compliance with those procedures to insure that recertifications are performed timely and signed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: E-Eligibility; R-Section 8 Program Administration Findings Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Action: We will issue continuous communication to tenants to seek compliance. REACH continues to employ a compliance team to review files and provide support and training to property management staff on income verification and signing and filing of documents. This is an area of continuous improvement. When errors or missing items are identified, they are being corrected and impact of noncompliance communicated to tenant.