Audit 49840

FY End
2022-06-30
Total Expended
$1.17M
Findings
8
Programs
1
Year: 2022 Accepted: 2022-11-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
59759 2022-001 Significant Deficiency - N
59760 2022-001 Significant Deficiency - N
59761 2022-002 Significant Deficiency - N
59762 2022-002 Significant Deficiency - N
636201 2022-001 Significant Deficiency - N
636202 2022-001 Significant Deficiency - N
636203 2022-002 Significant Deficiency - N
636204 2022-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.08M Yes 2

Contacts

Name Title Type
FEWGP9PJA8L8 Cynthia Duffe Auditee
3145717660 Kenny Dennison Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances 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. Pass-through entity identifying numbers are presented where applicable. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 541487.

Finding Details

Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085- HD007) Auditor non-compliance code: J - Unauthorized management fees Finding resolution status: In process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Noncompliance information: See statement of condition #2022-001 for noncompliance information. Statically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass through entity: N/A Questioned costs: $7,272 Statement of condition #2022-001: From the period October 1, 2021 through June 30, 2022, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD9839-B). Criteria: Pursuant to the Regulatory Agreement and HUD Handbook 4381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD9839-B). Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B). Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent. Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839- B) is received. Completion date: June 30, 2023 Management Response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085- HD007) Auditor non-compliance code: J - Unauthorized management fees Finding resolution status: In process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Noncompliance information: See statement of condition #2022-001 for noncompliance information. Statically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass through entity: N/A Questioned costs: $7,272 Statement of condition #2022-001: From the period October 1, 2021 through June 30, 2022, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD9839-B). Criteria: Pursuant to the Regulatory Agreement and HUD Handbook 4381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD9839-B). Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B). Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent. Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839- B) is received. Completion date: June 30, 2023 Management Response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Finding reference number: #2022-002 Assistance listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities 14.181, 2022 (Project identification number 085-HD007) Auditor non-compliance code: N - Reserve for Replacements Deposits Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Noncompliance information: See statement of condition #2022-002 for noncompliance information Statistically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass through entity: N/A Questioned costs: $598 Statement of condition #2022-002: The Corporation did not make the required monthly deposits into a separate reserve for replacements account. The reserve for replacements fund is underfunded by $598 as of June 30, 2022. Criteria: Pursuant to the Regulatory Agreement, the corporation is required to make monthly deposits into a separate reserve for replacements account. Effects or potential effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. The reserve for replacements fund is underfunded by $598 as of June 30, 2022. Cause: Management inadvertently omitted depositing funds in February 2022 in the amount of $598. Recommendation: Management should deposit $598 into the reserve for replacement. Completion date: August 19, 2022 Reporting views of responsible officials: Management agrees with the finding and auditor's recommendation. On August 19, 2022, management transferred $598 to the reserve for replacements fund.
Finding reference number: #2022-002 Assistance listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities 14.181, 2022 (Project identification number 085-HD007) Auditor non-compliance code: N - Reserve for Replacements Deposits Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Noncompliance information: See statement of condition #2022-002 for noncompliance information Statistically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass through entity: N/A Questioned costs: $598 Statement of condition #2022-002: The Corporation did not make the required monthly deposits into a separate reserve for replacements account. The reserve for replacements fund is underfunded by $598 as of June 30, 2022. Criteria: Pursuant to the Regulatory Agreement, the corporation is required to make monthly deposits into a separate reserve for replacements account. Effects or potential effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. The reserve for replacements fund is underfunded by $598 as of June 30, 2022. Cause: Management inadvertently omitted depositing funds in February 2022 in the amount of $598. Recommendation: Management should deposit $598 into the reserve for replacement. Completion date: August 19, 2022 Reporting views of responsible officials: Management agrees with the finding and auditor's recommendation. On August 19, 2022, management transferred $598 to the reserve for replacements fund.
Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085- HD007) Auditor non-compliance code: J - Unauthorized management fees Finding resolution status: In process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Noncompliance information: See statement of condition #2022-001 for noncompliance information. Statically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass through entity: N/A Questioned costs: $7,272 Statement of condition #2022-001: From the period October 1, 2021 through June 30, 2022, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD9839-B). Criteria: Pursuant to the Regulatory Agreement and HUD Handbook 4381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD9839-B). Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B). Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent. Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839- B) is received. Completion date: June 30, 2023 Management Response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085- HD007) Auditor non-compliance code: J - Unauthorized management fees Finding resolution status: In process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Noncompliance information: See statement of condition #2022-001 for noncompliance information. Statically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass through entity: N/A Questioned costs: $7,272 Statement of condition #2022-001: From the period October 1, 2021 through June 30, 2022, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD9839-B). Criteria: Pursuant to the Regulatory Agreement and HUD Handbook 4381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD9839-B). Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B). Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent. Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839- B) is received. Completion date: June 30, 2023 Management Response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Finding reference number: #2022-002 Assistance listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities 14.181, 2022 (Project identification number 085-HD007) Auditor non-compliance code: N - Reserve for Replacements Deposits Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Noncompliance information: See statement of condition #2022-002 for noncompliance information Statistically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass through entity: N/A Questioned costs: $598 Statement of condition #2022-002: The Corporation did not make the required monthly deposits into a separate reserve for replacements account. The reserve for replacements fund is underfunded by $598 as of June 30, 2022. Criteria: Pursuant to the Regulatory Agreement, the corporation is required to make monthly deposits into a separate reserve for replacements account. Effects or potential effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. The reserve for replacements fund is underfunded by $598 as of June 30, 2022. Cause: Management inadvertently omitted depositing funds in February 2022 in the amount of $598. Recommendation: Management should deposit $598 into the reserve for replacement. Completion date: August 19, 2022 Reporting views of responsible officials: Management agrees with the finding and auditor's recommendation. On August 19, 2022, management transferred $598 to the reserve for replacements fund.
Finding reference number: #2022-002 Assistance listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities 14.181, 2022 (Project identification number 085-HD007) Auditor non-compliance code: N - Reserve for Replacements Deposits Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Noncompliance information: See statement of condition #2022-002 for noncompliance information Statistically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass through entity: N/A Questioned costs: $598 Statement of condition #2022-002: The Corporation did not make the required monthly deposits into a separate reserve for replacements account. The reserve for replacements fund is underfunded by $598 as of June 30, 2022. Criteria: Pursuant to the Regulatory Agreement, the corporation is required to make monthly deposits into a separate reserve for replacements account. Effects or potential effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. The reserve for replacements fund is underfunded by $598 as of June 30, 2022. Cause: Management inadvertently omitted depositing funds in February 2022 in the amount of $598. Recommendation: Management should deposit $598 into the reserve for replacement. Completion date: August 19, 2022 Reporting views of responsible officials: Management agrees with the finding and auditor's recommendation. On August 19, 2022, management transferred $598 to the reserve for replacements fund.