FAC Explorer

Audit 55077

FY End
2022-12-31
Total Expended
$1.08M
Findings
2
Programs
2
Organization: Mermentau Elderly Housing Corporation Dba Riverbend Apartments (FL)
Year: 2022 Accepted: 2023-04-09
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59220 2022-001 - Yes N
635662 2022-001 - Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $1.02M Yes 0
14.157 Supportive Housing for the Elderly - Prac $61,875 Yes 1

Contacts

Name Title Type
XVQCYSB66BZ5 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 award activity of Mermentau Elderly Housing Corporation, HUD Project No. 064-EE039, 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 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 Mermentau Elderly Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Mermentau Elderly Housing Corporation. 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: Mermentau Elderly Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Mermentau Elderly Housing Corporation has received a HUD capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Mermentau Elderly Housing Corporation received no additional loans during the year. The balance of the capital advance outstanding as of December 31, 2022 was $1,019,600.

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: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed 120 days prior to the PRAC expiration date and any changes to rents, utility allowance, etc. must be applied to the tenants HUD - 50059 form as of the effective date upon execution of the contract renewal. Statement of Condition: The Project did not complete the renewal process 120 days prior to the PRAC expiration date and of the tenant files selected, none had a HUD-50059 reflecting the gross rent change effective November 1, 2022. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in the delay of HUD funding and did not implement the gross rent change effective November 1, 2022. Effect or Potential Effect: The Project is not in compliance with HUD regulations for timely renewal of PRAC contract resulting in delayed receipt of HAP funds and did not receive the appropriate amount of utility allowance. 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 will be adopted. Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding and establish procedures to ensure the Project implements approved rent changes on the effective date approved by HUD. Response Indicator: Agree. Completion Date: 12/31/2023 Response: All new staff now receives additional training on HUD guidelines. In addition, management is implementing a monitoring software to assist in ensuring timely submissions.
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: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed 120 days prior to the PRAC expiration date and any changes to rents, utility allowance, etc. must be applied to the tenants HUD - 50059 form as of the effective date upon execution of the contract renewal. Statement of Condition: The Project did not complete the renewal process 120 days prior to the PRAC expiration date and of the tenant files selected, none had a HUD-50059 reflecting the gross rent change effective November 1, 2022. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in the delay of HUD funding and did not implement the gross rent change effective November 1, 2022. Effect or Potential Effect: The Project is not in compliance with HUD regulations for timely renewal of PRAC contract resulting in delayed receipt of HAP funds and did not receive the appropriate amount of utility allowance. 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 will be adopted. Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding and establish procedures to ensure the Project implements approved rent changes on the effective date approved by HUD. Response Indicator: Agree. Completion Date: 12/31/2023 Response: All new staff now receives additional training on HUD guidelines. In addition, management is implementing a monitoring software to assist in ensuring timely submissions.