FAC Explorer

Audit 49061

FY End
2022-09-30
Total Expended
$6.88M
Findings
8
Programs
1
Organization: Catherine Booth Gardens of Tyler, Texas, Inc., A Texas Corporation (TX)
Year: 2022 Accepted: 2023-02-27
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46535 2022-001 Material Weakness - E
46536 2022-002 Material Weakness - E
46537 2022-001 Material Weakness - E
46538 2022-002 Material Weakness - E
622977 2022-001 Material Weakness - E
622978 2022-002 Material Weakness - E
622979 2022-001 Material Weakness - E
622980 2022-002 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $6.85M Yes 2

Contacts

Name Title Type
XNNQMMKDAGF1 Major Philip Swyers Auditee
4047286700 Amy Blocker Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of presentation Accounting Policies: Note 2 - Summary of significant accounting policiesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following, as applicable, the cost principles contained in the UniformGuidance. Catherine Booth Gardens of Tyler has elected not to use the 10-percent de minimisindirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal award activityof Catherine Booth Gardens of Tyler, HUD Project No. 113-EE064, under programs of the federalgovernment for the period October 1, 2021 through November 3, 2021 (day before sale). Theinformation in this schedule is presented in accordance with the requirements of Title 2 U.S. Codeof Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only aselected portion of the operations of Catherine Booth Gardens of Tyler, it is not intended to anddoes not present the financial position, changes in net assets, or cash flows of Catherine BoothGardens of Tyler.
Title: Note 3 - U.S. Department of Housing and Urban Development capital advance p Accounting Policies: Note 2 - Summary of significant accounting policiesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following, as applicable, the cost principles contained in the UniformGuidance. Catherine Booth Gardens of Tyler has elected not to use the 10-percent de minimisindirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Catherine Booth Gardens of Tyler has received a U.S. Department of Housing and UrbanDevelopment direct capital advance under Section 202 of the National Housing Act. The capitaladvance balance outstanding at the beginning of the year is included in the federal expenditurespresented in the Schedule. Catherine Booth Gardens of Tyler received no additional loans or capitaladvances during the year. The balance of the capital advance outstanding at November 3, 2021(day before sale) consists of:Assistance ListingNumber Program NameOutstanding Balanceat November 3, 2021(Day before Sale)14.157 Section 202 Capital Advance $ 6,854,900

Finding Details

Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, Assistance Listing No. 14.157 Statement of Condition Management did not maintain a documented wait list for potential tenants. Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, management is required to maintain a wait list in order to ensure that applicants are admitted in the proper order and to document proper admission and denial procedures. Cause No procedures were in place to create and maintain a wait list for applicants during the transition to new management and new ownership. Effect Tenants may not have been admitted in accordance with HUD guidelines. Recommendation Management should establish procedures to create and maintain a wait list for applicants in accordance with HUD guidelines to ensure that applicants are admitted in the proper order and that the process for applicants admitted and denied from the wait list is properly documented, even during transition of management and/or ownership. Auditor Noncompliance Code: R - Section 8 program administration; E - Eligibility (UG) Finding Resolution Status: Unresolved - As the property has been sold, management plans to contact HUD to determine the appropriate handling of this situation. Reporting Views of Responsible Officials Management agrees with the finding.
Finding 2022-002
Department of Housing and Urban Development Finding 2022-002 Section 202 Supportive Housing for the Elderly, Assistance Listing No. 14.157 Statement of Condition During the procedures applied to a sample of six tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files: 1. Four instances where the Project did not have documentation in their lease file that their income was timely verified. 2. One instance where the Project did not have annual tenant recertification Form 50059 completed timely. 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. 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 during the transition to new management and new ownership. Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. 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, even during transition of management and/or ownership. Auditor Noncompliance Code: R - Section 8 program administration; E - Eligibility (UG) Finding Resolution Status: Resolved Reporting Views of Responsible Officials Management agrees with the finding.
Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, Assistance Listing No. 14.157 Statement of Condition Management did not maintain a documented wait list for potential tenants. Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, management is required to maintain a wait list in order to ensure that applicants are admitted in the proper order and to document proper admission and denial procedures. Cause No procedures were in place to create and maintain a wait list for applicants during the transition to new management and new ownership. Effect Tenants may not have been admitted in accordance with HUD guidelines. Recommendation Management should establish procedures to create and maintain a wait list for applicants in accordance with HUD guidelines to ensure that applicants are admitted in the proper order and that the process for applicants admitted and denied from the wait list is properly documented, even during transition of management and/or ownership. Auditor Noncompliance Code: R - Section 8 program administration; E - Eligibility (UG) Finding Resolution Status: Unresolved - As the property has been sold, management plans to contact HUD to determine the appropriate handling of this situation. Reporting Views of Responsible Officials Management agrees with the finding.
Finding 2022-002
Department of Housing and Urban Development Finding 2022-002 Section 202 Supportive Housing for the Elderly, Assistance Listing No. 14.157 Statement of Condition During the procedures applied to a sample of six tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files: 1. Four instances where the Project did not have documentation in their lease file that their income was timely verified. 2. One instance where the Project did not have annual tenant recertification Form 50059 completed timely. 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. 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 during the transition to new management and new ownership. Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. 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, even during transition of management and/or ownership. Auditor Noncompliance Code: R - Section 8 program administration; E - Eligibility (UG) Finding Resolution Status: Resolved Reporting Views of Responsible Officials Management agrees with the finding.
Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, Assistance Listing No. 14.157 Statement of Condition Management did not maintain a documented wait list for potential tenants. Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, management is required to maintain a wait list in order to ensure that applicants are admitted in the proper order and to document proper admission and denial procedures. Cause No procedures were in place to create and maintain a wait list for applicants during the transition to new management and new ownership. Effect Tenants may not have been admitted in accordance with HUD guidelines. Recommendation Management should establish procedures to create and maintain a wait list for applicants in accordance with HUD guidelines to ensure that applicants are admitted in the proper order and that the process for applicants admitted and denied from the wait list is properly documented, even during transition of management and/or ownership. Auditor Noncompliance Code: R - Section 8 program administration; E - Eligibility (UG) Finding Resolution Status: Unresolved - As the property has been sold, management plans to contact HUD to determine the appropriate handling of this situation. Reporting Views of Responsible Officials Management agrees with the finding.
Finding 2022-002
Department of Housing and Urban Development Finding 2022-002 Section 202 Supportive Housing for the Elderly, Assistance Listing No. 14.157 Statement of Condition During the procedures applied to a sample of six tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files: 1. Four instances where the Project did not have documentation in their lease file that their income was timely verified. 2. One instance where the Project did not have annual tenant recertification Form 50059 completed timely. 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. 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 during the transition to new management and new ownership. Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. 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, even during transition of management and/or ownership. Auditor Noncompliance Code: R - Section 8 program administration; E - Eligibility (UG) Finding Resolution Status: Resolved Reporting Views of Responsible Officials Management agrees with the finding.
Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, Assistance Listing No. 14.157 Statement of Condition Management did not maintain a documented wait list for potential tenants. Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, management is required to maintain a wait list in order to ensure that applicants are admitted in the proper order and to document proper admission and denial procedures. Cause No procedures were in place to create and maintain a wait list for applicants during the transition to new management and new ownership. Effect Tenants may not have been admitted in accordance with HUD guidelines. Recommendation Management should establish procedures to create and maintain a wait list for applicants in accordance with HUD guidelines to ensure that applicants are admitted in the proper order and that the process for applicants admitted and denied from the wait list is properly documented, even during transition of management and/or ownership. Auditor Noncompliance Code: R - Section 8 program administration; E - Eligibility (UG) Finding Resolution Status: Unresolved - As the property has been sold, management plans to contact HUD to determine the appropriate handling of this situation. Reporting Views of Responsible Officials Management agrees with the finding.
Finding 2022-002
Department of Housing and Urban Development Finding 2022-002 Section 202 Supportive Housing for the Elderly, Assistance Listing No. 14.157 Statement of Condition During the procedures applied to a sample of six tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files: 1. Four instances where the Project did not have documentation in their lease file that their income was timely verified. 2. One instance where the Project did not have annual tenant recertification Form 50059 completed timely. 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. 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 during the transition to new management and new ownership. Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. 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, even during transition of management and/or ownership. Auditor Noncompliance Code: R - Section 8 program administration; E - Eligibility (UG) Finding Resolution Status: Resolved Reporting Views of Responsible Officials Management agrees with the finding.