FAC Explorer

Audit 51940

FY End
2022-12-31
Total Expended
$1.03M
Findings
4
Programs
2
Organization: Tri-County Senior Citizens and Housing, Inc. (CO)
Year: 2022 Accepted: 2023-04-12
Auditor: Wall Smith Bateman INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59304 2022-002 Significant Deficiency - CEL
59305 2022-002 Significant Deficiency - CEL
635746 2022-002 Significant Deficiency - CEL
635747 2022-002 Significant Deficiency - CEL

Programs

ALN Program Spent Major Findings
14.182 Section 8 New Construction and Substantial Rehabilitation $839,905 Yes 1
14.195 Section 8 Housing Assistance Payments Program $189,010 Yes 1

Contacts

Name Title Type
MTKBTR5F8FM9 Karla Shriver Auditee
7198525778 Kimberley Temple Auditor
No contacts on file

Notes to SEFA

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 as to reimbursement. Tri-County Senior Citizens and Housing, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance as they did not allocate any indirect costs for the year ended December 31, 2022. In addition, Tri-Country Senior Citizens and Housing, Inc. did not pass-through federal funds to subrecipients. 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 grant activity of Tri-County Senior Citizens and Housing, Inc., under programs of the federal government for the year ended December 31, 2022. 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 Tri-County Senior Citizens and Housing, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Tri-County Senior Citizens and Housing, Inc.
Title: SECTION 8 PROJECT-BASED CLUSTER 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. Tri-County Senior Citizens and Housing, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance as they did not allocate any indirect costs for the year ended December 31, 2022. In addition, Tri-Country Senior Citizens and Housing, Inc. did not pass-through federal funds to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Section 8 Project-Based loan funds are administered by the the U.S. Department of Housing and Urban Development. The loans are payable by Tri-County Senior Citizens and Housing, Inc. The outstanding loan balances at December 31, 2022 are included in the financial statements. The detail of loans outstanding at the beginning and end of the year are described below and in Note 6 of the Notes to the Financial Statements.

Finding Details

Finding 2022-002
Finding 2022-002:Section 8 Project-Based Cluster Federal Assistance Number: 14.182 and 14.195 U.S. Department of Housing and Urban Development Compliance Requirements: Cash Management, Eligibility, Reporting Type of finding: Internal Control Over Compliance (significant deficiency) Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require that the non-Federal entity establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award (2 CFR 200.303(a)). Condition: The Organization has not implemented a review or monitoring process to ensure propriety in eligibility determinations, housing assistance payment requests, and tenant lease agreements. Cause: The compliance responsibilities of the Organization are performed by a few people which has made it difficult to establish a proper review process over cash management, eligibility, and reporting requirements. Effect: Noncompliance with the Section 8 Project-Based Cluster requirements may exist and not be detected by the Organization. Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to ensure a review process is established through adequate segregation of duties. The Organization should consider assessing and realigning the duties and responsibilities of administrative staff allowing the administrator to act in a more supervisory position. Grantee?s Response: See corrective action plan.
Finding 2022-002
Finding 2022-002:Section 8 Project-Based Cluster Federal Assistance Number: 14.182 and 14.195 U.S. Department of Housing and Urban Development Compliance Requirements: Cash Management, Eligibility, Reporting Type of finding: Internal Control Over Compliance (significant deficiency) Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require that the non-Federal entity establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award (2 CFR 200.303(a)). Condition: The Organization has not implemented a review or monitoring process to ensure propriety in eligibility determinations, housing assistance payment requests, and tenant lease agreements. Cause: The compliance responsibilities of the Organization are performed by a few people which has made it difficult to establish a proper review process over cash management, eligibility, and reporting requirements. Effect: Noncompliance with the Section 8 Project-Based Cluster requirements may exist and not be detected by the Organization. Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to ensure a review process is established through adequate segregation of duties. The Organization should consider assessing and realigning the duties and responsibilities of administrative staff allowing the administrator to act in a more supervisory position. Grantee?s Response: See corrective action plan.
Finding 2022-002
Finding 2022-002:Section 8 Project-Based Cluster Federal Assistance Number: 14.182 and 14.195 U.S. Department of Housing and Urban Development Compliance Requirements: Cash Management, Eligibility, Reporting Type of finding: Internal Control Over Compliance (significant deficiency) Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require that the non-Federal entity establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award (2 CFR 200.303(a)). Condition: The Organization has not implemented a review or monitoring process to ensure propriety in eligibility determinations, housing assistance payment requests, and tenant lease agreements. Cause: The compliance responsibilities of the Organization are performed by a few people which has made it difficult to establish a proper review process over cash management, eligibility, and reporting requirements. Effect: Noncompliance with the Section 8 Project-Based Cluster requirements may exist and not be detected by the Organization. Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to ensure a review process is established through adequate segregation of duties. The Organization should consider assessing and realigning the duties and responsibilities of administrative staff allowing the administrator to act in a more supervisory position. Grantee?s Response: See corrective action plan.
Finding 2022-002
Finding 2022-002:Section 8 Project-Based Cluster Federal Assistance Number: 14.182 and 14.195 U.S. Department of Housing and Urban Development Compliance Requirements: Cash Management, Eligibility, Reporting Type of finding: Internal Control Over Compliance (significant deficiency) Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require that the non-Federal entity establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award (2 CFR 200.303(a)). Condition: The Organization has not implemented a review or monitoring process to ensure propriety in eligibility determinations, housing assistance payment requests, and tenant lease agreements. Cause: The compliance responsibilities of the Organization are performed by a few people which has made it difficult to establish a proper review process over cash management, eligibility, and reporting requirements. Effect: Noncompliance with the Section 8 Project-Based Cluster requirements may exist and not be detected by the Organization. Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to ensure a review process is established through adequate segregation of duties. The Organization should consider assessing and realigning the duties and responsibilities of administrative staff allowing the administrator to act in a more supervisory position. Grantee?s Response: See corrective action plan.