FAC Explorer

Audit 55323

FY End
2022-09-30
Total Expended
$9.01M
Findings
4
Programs
1
Organization: Catherine Booth Residence INC A Florida Corporation (FL)
Year: 2022 Accepted: 2023-02-27
Auditor: Cohnrenick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
58533 2022-001 Material Weakness Yes E
58534 2022-001 Material Weakness Yes E
634975 2022-001 Material Weakness Yes E
634976 2022-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $8.15M Yes 1

Contacts

Name Title Type
D6VLAANVC5E7 Major Philip Swyers Auditee
4047286700 Amy Blocker Auditor
No contacts on file

Notes to SEFA

Title: Note - Basis of Presentation Accounting Policies: Note B - Summary of significant accounting policiesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following, as applicable, the cost principles contained in the UniformGuidance. Catherine Booth Towers has elected not to use the 10-percent de minimis indirect costrate allowed under the Uniform Guidance. 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 includes the federal award activityof Catherine Booth Towers, HUD Project No.: 067-EE054-WAH, under programs of the federalgovernment for the year ended September 30, 2022. The information in this Schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations ofCatherine Booth Towers, it is not intended to and does not present the financial position, changes innet assets, or cash flows of Catherine Booth Towers.
Title: Note C - U.S. Department of Housing and Urban Development capital advance p Accounting Policies: Note B - Summary of significant accounting policiesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following, as applicable, the cost principles contained in the UniformGuidance. Catherine Booth Towers has elected not to use the 10-percent de minimis indirect costrate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Catherine Booth Towers has received a U.S. Department of Housing and Urban Developmentcapital grant under Section 202 of the National Housing Act. The capital grant balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Catherine Booth Towers received no additional grants during the year. The balance of the capital grant outstanding at September 30, 2022 consists of:Assistance ListingNumber Program NameOutstanding Balanceat September 30,202214.157 Section 202 Capital Advance $ 8,150,800

Finding Details

Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition In connection with our lease file review, we noted the following deficiencies: 2 out of 13 tenants tested did not have documentation in their lease file that their income was verified. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Effect The procedures for determining tenant security deposits and eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Cause Management's policies with respect to the determination of tenant security deposits and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant security deposits are correctly recorded, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration (REAC); E - Eligibility (UG) Finding Resolution Status: In process. The late completion of our audits for fiscal years 2020 and 2021 has contributed to our not getting our budgets for the new fiscal years submitted and approved timely. Therefore, Management did not have access to the Enterprise Income Verification (EIV) system [the system used to access Social Security information and Health and Human Service information] for a period of time so that they could verify income. This issue is anticipated again in fiscal year 2023 because of the late submission of the fiscal year 2022 budget which required the fiscal year 2021 actual data. Steps are being taken to have the fiscal year 2022 audit completed in a reasonable timeframe, and we do not anticipate the same problem going forward. Reporting Views of Responsible Officials Management agrees with the finding and is taking steps to address the issue that caused it.
Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition In connection with our lease file review, we noted the following deficiencies: 2 out of 13 tenants tested did not have documentation in their lease file that their income was verified. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Effect The procedures for determining tenant security deposits and eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Cause Management's policies with respect to the determination of tenant security deposits and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant security deposits are correctly recorded, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration (REAC); E - Eligibility (UG) Finding Resolution Status: In process. The late completion of our audits for fiscal years 2020 and 2021 has contributed to our not getting our budgets for the new fiscal years submitted and approved timely. Therefore, Management did not have access to the Enterprise Income Verification (EIV) system [the system used to access Social Security information and Health and Human Service information] for a period of time so that they could verify income. This issue is anticipated again in fiscal year 2023 because of the late submission of the fiscal year 2022 budget which required the fiscal year 2021 actual data. Steps are being taken to have the fiscal year 2022 audit completed in a reasonable timeframe, and we do not anticipate the same problem going forward. Reporting Views of Responsible Officials Management agrees with the finding and is taking steps to address the issue that caused it.
Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition In connection with our lease file review, we noted the following deficiencies: 2 out of 13 tenants tested did not have documentation in their lease file that their income was verified. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Effect The procedures for determining tenant security deposits and eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Cause Management's policies with respect to the determination of tenant security deposits and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant security deposits are correctly recorded, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration (REAC); E - Eligibility (UG) Finding Resolution Status: In process. The late completion of our audits for fiscal years 2020 and 2021 has contributed to our not getting our budgets for the new fiscal years submitted and approved timely. Therefore, Management did not have access to the Enterprise Income Verification (EIV) system [the system used to access Social Security information and Health and Human Service information] for a period of time so that they could verify income. This issue is anticipated again in fiscal year 2023 because of the late submission of the fiscal year 2022 budget which required the fiscal year 2021 actual data. Steps are being taken to have the fiscal year 2022 audit completed in a reasonable timeframe, and we do not anticipate the same problem going forward. Reporting Views of Responsible Officials Management agrees with the finding and is taking steps to address the issue that caused it.
Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition In connection with our lease file review, we noted the following deficiencies: 2 out of 13 tenants tested did not have documentation in their lease file that their income was verified. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Effect The procedures for determining tenant security deposits and eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Cause Management's policies with respect to the determination of tenant security deposits and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant security deposits are correctly recorded, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: R - Section 8 program administration (REAC); E - Eligibility (UG) Finding Resolution Status: In process. The late completion of our audits for fiscal years 2020 and 2021 has contributed to our not getting our budgets for the new fiscal years submitted and approved timely. Therefore, Management did not have access to the Enterprise Income Verification (EIV) system [the system used to access Social Security information and Health and Human Service information] for a period of time so that they could verify income. This issue is anticipated again in fiscal year 2023 because of the late submission of the fiscal year 2022 budget which required the fiscal year 2021 actual data. Steps are being taken to have the fiscal year 2022 audit completed in a reasonable timeframe, and we do not anticipate the same problem going forward. Reporting Views of Responsible Officials Management agrees with the finding and is taking steps to address the issue that caused it.