FAC Explorer

Audit 50381

FY End
2022-06-30
Total Expended
$6.76M
Findings
2
Programs
2
Organization: Senior Citizens Housing Development Corporation of Bell (FL)
Year: 2022 Accepted: 2023-03-01
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
51319 2022-001 - - E
627761 2022-001 - - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $6.41M Yes 0
14.157 Supportive Housing for the Elderly - Prac $352,064 Yes 1

Contacts

Name Title Type
VW3TAZH36XW5 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 CAPITAL ADVANCE Accounting Policies: NOTE A BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of Senior Citizens Housing Development Corporation of Bell, operating as Murray Place, HUD Project No. 122-EE017, 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 Part200, 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 Bell, 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 Bell. 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 Bell has elected not to use the 10-percent de minimis indirectcost rate allowed under the Uniform Guidance. Senior Citizens Housing Development Corporation of Bell has received a HUD capital advance underSection 202 of the National Housing Act. The capital advance balance outstanding at the beginning ofthe year is included in the federal expenditures presented in the schedule. Senior Citizens HousingDevelopment Corporation of Bell received no additional loans during the year. The balance of thecapital advance outstanding as of June 30, 2022 is $6,411,300.

Finding Details

Finding 2022-001
Finding No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Seventy-five tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires that tenant income be calculated in accordance with the HUD Handbook Chapter 5: Determining Income & Calculating Rent and that tenants sign the form HUD-50059 at the time of reverification and retained in the tenant files. Statement of Condition: Of the tenant files selected, three tenants' income was not correctly calculated and one tenant's recertification form HUD-50059 was not signed by the tenant. Cause: The Project incorrectly calculated tenant income and did not complete an interim recertification to correct the errors. Additionally, the Project did not obtain a tenant's signature on the form HUD-50059 at the time of recertification. Effect or Potential Effect: The Project incorrectly charged three tenants and did not obtain one tenant's consent to renew their lease. 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: The Project should calculate rent in accordance with HUD regulation and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 6/30/2023 Response: Management will provide training to new managers on the correct method of calculating tenant income. During the next 3-4 months, the income calculations for all move in certifications and annual re-certifications will be reviewed by Compliance for accuracy prior to the manager finalizing the certification.
Finding 2022-001
Finding No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Seventy-five tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires that tenant income be calculated in accordance with the HUD Handbook Chapter 5: Determining Income & Calculating Rent and that tenants sign the form HUD-50059 at the time of reverification and retained in the tenant files. Statement of Condition: Of the tenant files selected, three tenants' income was not correctly calculated and one tenant's recertification form HUD-50059 was not signed by the tenant. Cause: The Project incorrectly calculated tenant income and did not complete an interim recertification to correct the errors. Additionally, the Project did not obtain a tenant's signature on the form HUD-50059 at the time of recertification. Effect or Potential Effect: The Project incorrectly charged three tenants and did not obtain one tenant's consent to renew their lease. 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: The Project should calculate rent in accordance with HUD regulation and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 6/30/2023 Response: Management will provide training to new managers on the correct method of calculating tenant income. During the next 3-4 months, the income calculations for all move in certifications and annual re-certifications will be reviewed by Compliance for accuracy prior to the manager finalizing the certification.