FAC Explorer

Audit 56686

FY End
2022-06-30
Total Expended
$5.19M
Findings
2
Programs
2
Organization: Family Service Senior Housing Corporation (CA)
Year: 2022 Accepted: 2023-03-28
Auditor: Eadie & Payne LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
61449 2022-001 Material Weakness - P
637891 2022-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $4.80M Yes 1
14.195 Section 8 Housing Assistance Payments Program $396,580 - 0

Contacts

Name Title Type
G2GDEX6E6186 Darryl Peters Auditee
9513000450 Eden C Casareno Auditor
No contacts on file

Notes to SEFA

Title: Capital Advance 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: The auditee has not elected to use the de minimis cost rate. The Section 202 Supportive Housing for the Elderly program provides capital advance funding for the development of supportive rental housing for very-low-income persons aged 62 years or older and project rental subsidies in the form of a Project Rental Assistance Contract (PRAC) to maintain ongoing affordability. Capital advance funds must be used to finance construction, reconstruction, moderate or substantial rehabilitation, or acquisition of a structure with or without rehabilitation. Capital advance funds bear no interest and repayment is not required provided the housing remains available for occupancy by very-low-income elderly persons for at least 40 years.The capital advance from previous years for which the federal government imposes continuing compliance requirements was $4,798,295 as of June 30, 2022 and 2021.
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. De Minimis Rate Used: N Rate Explanation: The auditee has not elected to use the de minimis cost rate. The accompanying schedule of expenditures of Federal awards (Schedule) includes the Federal award activity of Family Service Senior Housing Corporation under programs of the Federal government for the year ended June 30, 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 (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Association, it is not intended to and does not present the financial position, changes in net assets,or cash flows of the Association.

Finding Details

Finding 2022-001
2022-001 ? Non-compliance Assistance Listing: 14.157 Supportive Housing for the Elderly Name of Federal Agency: Department of Housing and Urban Development (HUD) Criteria: According to the 2022 Compliance Supplement, this program is not exempt from the audit requirements provided in 2 CFR Part 200, Subpart F. A non-Federal entity that expends $750,000 or more during the fiscal year must have a single or program-specific audit conducted for that year. In addition, HUD requires that the full outstanding balance of the capital advance should be considered federal awards expended, included in determining Type A programs, and report as loans on the Schedule of Expenditures of Federal Awards or accompanying notes in accordance with 2 CFR Part 200, Subpart F. Condition: Family Service Senior Housing Corporation did not file single audit reports for the fiscal years 2017 through 2021. Cause: Management did not arrange for the required audit. Effect or Potential Effect: The noncompliance resulted in Family Service Senior Housing Corporation not qualifying as a low-risk auditee. HUD may require single audits for years 2017 through 2021. Recommendation: We recommend that Family Service Senior Housing Corporation obtain annual single audits until the capital advance agreement expires.
Finding 2022-001
2022-001 ? Non-compliance Assistance Listing: 14.157 Supportive Housing for the Elderly Name of Federal Agency: Department of Housing and Urban Development (HUD) Criteria: According to the 2022 Compliance Supplement, this program is not exempt from the audit requirements provided in 2 CFR Part 200, Subpart F. A non-Federal entity that expends $750,000 or more during the fiscal year must have a single or program-specific audit conducted for that year. In addition, HUD requires that the full outstanding balance of the capital advance should be considered federal awards expended, included in determining Type A programs, and report as loans on the Schedule of Expenditures of Federal Awards or accompanying notes in accordance with 2 CFR Part 200, Subpart F. Condition: Family Service Senior Housing Corporation did not file single audit reports for the fiscal years 2017 through 2021. Cause: Management did not arrange for the required audit. Effect or Potential Effect: The noncompliance resulted in Family Service Senior Housing Corporation not qualifying as a low-risk auditee. HUD may require single audits for years 2017 through 2021. Recommendation: We recommend that Family Service Senior Housing Corporation obtain annual single audits until the capital advance agreement expires.