FAC Explorer

Audit 46219

FY End
2022-12-31
Total Expended
$4.42M
Findings
4
Programs
3
Organization: Senior Citizens Housing Development Corporation of Boston, INC (FL)
Year: 2022 Accepted: 2023-08-14
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38784 2022-001 - Yes E
38785 2022-002 Material Weakness - N
615226 2022-001 - Yes E
615227 2022-002 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $3.60M Yes 0
14.157 Supportive Housing for the Elderly - Prac $491,274 Yes 2
14.218 Community Development Block Grants/entitlement Grants $326,932 - 0

Contacts

Name Title Type
MZ83H9GKNCU3 Irene Phillips Auditee
9548359200 Jennifer R. Koffman Auditor
No contacts on file

Notes to SEFA

Title: NOTE C - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOANS Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Senior Citizens Housing Development Corporation of Boston, Inc., HUD Project No. 023-EH351, 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 Senior Citizens Housing Development Corporation of Boston, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Senior Citizens Housing Development Corporation of Boston, Inc. 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Senior Citizens Housing Development Corporation of Boston, Inc., has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Senior Citizens Housing Development Corporation of Boston, Inc. has received a HUD capital advance under Section 202 of the Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Senior Citizens Housing Development Corporation of Boston, Inc., received no additional loans during the year. The balance of the capital advance outstanding as of December 31, 2022 was $3,602,200.On December 15, 1993, the Project also entered into an agreement with the City of Boston Public Facilities Department for a grant. The grant balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of the grant outstanding as of December 31, 2022 was $326,932.

Finding Details

Finding 2022-001
Finding No. 2022-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Forty-two tenants. Sample Size Information: Five tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001. Criteria: HUD regulation requires that criminal background checks be performed prior to tenant acceptance. Statement of Condition: Of the tenant files selected, one tenant moved in prior to completing the tenant screening process. Cause: The Project did not perform tenant screening in a timely manner. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency may be disallowed. Auditor Non-Compliance Code: R ? Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: Management should verify eligibility in a timely manner and perform background checks prior to tenant acceptance. Response Indicator: Agree. Completion Date: 3/14/2023 Response: This was an oversight from a former community manager. Management has provided current staff with additional training on HUD guidelines and regulations.
Finding 2022-002
FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved Information on Universe Population Size: Rent schedules and PRAC contract. Sample Size Information: Rent schedules and PRAC contract. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD-authorized rent increases should correspond with and agree to an approved form HUD-92458 on the yearly PRAC contract renewal. The authorized rent increase should be recognized in the period of approval with timely adjustments applied to the monthly housing assistance payments requests on form HUD-52670. Statement of Condition: The Project did not apply a gross rent increase that was approved on the annual PRAC contract renewal and an approved form HUD-92458 was not obtained. A receivable for the rent increase was not recorded by management and a total receivable of $26,208 was recorded through audit adjustment. Cause: The Project materially understated housing assistance payments requiring material adjustment. Effect or Potential Effect: The Project was not able to utilize the additional funds awarded through the approved rent increase in the intended period and without correction through audit adjustment, revenue of the current audit period presented on the financial statements and reported federal awards would have been materially misstated. Auditor Non-Compliance Code: R ? Section 8 Program Administration. Questioned Costs: $24,564 Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure that rent increases are submitted for approval on form HUD-92458 in a timely manner and that the submitted amounts agree to the approved PRAC renewal contract. Response Indicator: Agree. Completion Date: 12/31/2023 Response: The compliance department is now monitoring and tracking PRAC contract renewals for properties. Going forward reminders and follow up to deadlines will be issued to ensure rent increases are submitted timely.
Finding 2022-001
Finding No. 2022-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Forty-two tenants. Sample Size Information: Five tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001. Criteria: HUD regulation requires that criminal background checks be performed prior to tenant acceptance. Statement of Condition: Of the tenant files selected, one tenant moved in prior to completing the tenant screening process. Cause: The Project did not perform tenant screening in a timely manner. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency may be disallowed. Auditor Non-Compliance Code: R ? Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: Management should verify eligibility in a timely manner and perform background checks prior to tenant acceptance. Response Indicator: Agree. Completion Date: 3/14/2023 Response: This was an oversight from a former community manager. Management has provided current staff with additional training on HUD guidelines and regulations.
Finding 2022-002
FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved Information on Universe Population Size: Rent schedules and PRAC contract. Sample Size Information: Rent schedules and PRAC contract. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD-authorized rent increases should correspond with and agree to an approved form HUD-92458 on the yearly PRAC contract renewal. The authorized rent increase should be recognized in the period of approval with timely adjustments applied to the monthly housing assistance payments requests on form HUD-52670. Statement of Condition: The Project did not apply a gross rent increase that was approved on the annual PRAC contract renewal and an approved form HUD-92458 was not obtained. A receivable for the rent increase was not recorded by management and a total receivable of $26,208 was recorded through audit adjustment. Cause: The Project materially understated housing assistance payments requiring material adjustment. Effect or Potential Effect: The Project was not able to utilize the additional funds awarded through the approved rent increase in the intended period and without correction through audit adjustment, revenue of the current audit period presented on the financial statements and reported federal awards would have been materially misstated. Auditor Non-Compliance Code: R ? Section 8 Program Administration. Questioned Costs: $24,564 Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure that rent increases are submitted for approval on form HUD-92458 in a timely manner and that the submitted amounts agree to the approved PRAC renewal contract. Response Indicator: Agree. Completion Date: 12/31/2023 Response: The compliance department is now monitoring and tracking PRAC contract renewals for properties. Going forward reminders and follow up to deadlines will be issued to ensure rent increases are submitted timely.