Audit 56151

FY End

2022-12-31

Total Expended

$1.26M

Findings

4

Programs

2

Organization: Rayne Elderly Housing Corporation Operating As Leisure Lane Apartments (FL)

Year: 2022 Accepted: 2023-04-09

Auditor: Bellows Associates P A

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
59222	2022-001	-	-	N
59223	2022-002	-	-	N
635664	2022-001	-	-	N
635665	2022-002	-	-	N

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly - Capital Advance	$1.13M	Yes	0
14.157	Supportive Housing for the Elderly - Prac	$127,897	Yes	2

Contacts

Name	Title	Type
CLMSU3TNLDB4	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 Rayne Elderly Housing Corporation, HUD Project No. 064-EE065, 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 Rayne Elderly Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Rayne 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: Rayne Elderly Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed underthe Uniform Guidance. Rayne 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. Rayne Elderly Housing Corporation received no additional loans during the year. The balance of the capital advance outstanding as of December 31, 2022 was $1,130,793.

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: All replacement reserve deposits for the year ended December 31, 2022. Sample Size Information: Required replacement reserve deposits for the year ended December 31, 2022. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulation, timely monthly deposits must be made to the replacement reserve account. Statement of Condition: The Project underfunded the account by $4,800. Cause: The project did not fund the replacement reserve account for one month. Effect or Potential Effect: Deficiently funded replacement reserve. Auditor Non-Compliance Code: N ? Reserve for Replacements deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 12/31/2023 Response: The project underfunded by one month in FY2022 to compensate for the one month over funding in PY. A 9250 was submitted and is awaiting approval.

Finding 2022-002

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed 120 days prior to the PRAC expiration date. Statement of Condition: The Project did not complete the renewal process 120 days prior to the PRAC expiration date. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in the delay of HUD funding. 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. 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 comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding. Response Indicator: Agree. Completion Date: 06/27/2022 Response: Staff is going to be trained on the proper procedures to follow for the PRAC contract renewal process. This will include meeting deadlines for submission to HUD. As of March 2023, compliance created a spreadsheet of dates when contract renewals are due. Compliance will be monitoring this process and will be making monthly contacts to the Community Manager and Regional Property Manager to ensure deadlines will be met.

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: All replacement reserve deposits for the year ended December 31, 2022. Sample Size Information: Required replacement reserve deposits for the year ended December 31, 2022. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulation, timely monthly deposits must be made to the replacement reserve account. Statement of Condition: The Project underfunded the account by $4,800. Cause: The project did not fund the replacement reserve account for one month. Effect or Potential Effect: Deficiently funded replacement reserve. Auditor Non-Compliance Code: N ? Reserve for Replacements deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 12/31/2023 Response: The project underfunded by one month in FY2022 to compensate for the one month over funding in PY. A 9250 was submitted and is awaiting approval.

Finding 2022-002

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed 120 days prior to the PRAC expiration date. Statement of Condition: The Project did not complete the renewal process 120 days prior to the PRAC expiration date. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in the delay of HUD funding. 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. 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 comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding. Response Indicator: Agree. Completion Date: 06/27/2022 Response: Staff is going to be trained on the proper procedures to follow for the PRAC contract renewal process. This will include meeting deadlines for submission to HUD. As of March 2023, compliance created a spreadsheet of dates when contract renewals are due. Compliance will be monitoring this process and will be making monthly contacts to the Community Manager and Regional Property Manager to ensure deadlines will be met.