Audit 49355

FY End
2022-09-30
Total Expended
$2.53M
Findings
2
Programs
1
Organization: Whitfield Place Inc. (GA)
Year: 2022 Accepted: 2023-04-24
Auditor: Forvis LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
42751 2022-001 Significant Deficiency - Eligibility
619193 2022-001 Significant Deficiency - Eligibility

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.53M Yes 1

Contacts

Name Title Type
DSQ7UJBPY9U3 Steven Bridenstine Auditee
7062726148 Kelly Thrift Auditor
No contacts on file

Notes to SEFA

Title: LOAN BALANCES AND RENTAL ASSISTANCE 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 to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Awards under Section 202 Supportive Housing for the Elderly include both capital advances and rental assistance. Federal expenditures reported in the accompanying schedule include the outstanding principal balance on the capital advance payable at September 30, 2021 and tenant assistance payments received during the year ended September 30, 2022.
Title: CONTENGENCIES 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 to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. WPs federal program is subject to financial and compliance audits by grantor agencies which, if instances of material noncompliance are found, may result in disallowed expenditures and affect its continued participation in specific programs. The amount, if any, of expenditures, which may be disallowed by the grantor agencies, cannot be determined at this time. However, WP expects such amounts, if any, to be immaterial.
Title: BASIS OF PRESENTATION 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 to reimbursement. 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 (the schedule) includes the federal awards activity of Whitfield Place, Inc. (WP) under programs of the federal government for the year ended September 30, 2022. The information in the 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 WP, it is not intended to and does not present the financial position, changes in net assets or cash flows of WP.

Finding Details

Finding: 2022-001 ? Tenant Lease Addendums Federal Agency Name: U.S. Department of Housing and Urban Development Program Name: Section 202 Supportive Housing for the Elderly Significant Deficiency Assistance Listing 14.157 Criteria: The Department of Housing and Urban Development requires each facility to maintain updated lease addendums to reflect the most current rent and utility amounts per a tenant?s Form 50059. Condition: Lack of documentation of updated lease addendums from tenant files. ? Updated lease addendums not available for 4 of 5 tenant files tested Cause: Appropriate processes and procedures were not in place to ensure supervisory personnel obtained updated lease addendums. Effect: The effects of the amount being calculated incorrect are that the tenant could pay an incorrect amount (gross rent amount) and the tenant could also receive an incorrect assistance payment from HUD as a subsidy. Questioned Costs: N/A Identification of Prior Year Audit Findings: N/A Auditor?s Recommendation: Dalton Senior Housing, Inc. d/b/a Whitfield Commons (?DSH?) should obtain and keep updated lease addendums in all tenant files. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the findings and has put in place a process to ensure all tenants have updated lease addendums. See Management?s Corrective Action Plan on the following page.
Finding: 2022-001 ? Tenant Lease Addendums Federal Agency Name: U.S. Department of Housing and Urban Development Program Name: Section 202 Supportive Housing for the Elderly Significant Deficiency Assistance Listing 14.157 Criteria: The Department of Housing and Urban Development requires each facility to maintain updated lease addendums to reflect the most current rent and utility amounts per a tenant?s Form 50059. Condition: Lack of documentation of updated lease addendums from tenant files. ? Updated lease addendums not available for 4 of 5 tenant files tested Cause: Appropriate processes and procedures were not in place to ensure supervisory personnel obtained updated lease addendums. Effect: The effects of the amount being calculated incorrect are that the tenant could pay an incorrect amount (gross rent amount) and the tenant could also receive an incorrect assistance payment from HUD as a subsidy. Questioned Costs: N/A Identification of Prior Year Audit Findings: N/A Auditor?s Recommendation: Dalton Senior Housing, Inc. d/b/a Whitfield Commons (?DSH?) should obtain and keep updated lease addendums in all tenant files. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the findings and has put in place a process to ensure all tenants have updated lease addendums. See Management?s Corrective Action Plan on the following page.