FAC Explorer

Audit 56700

FY End
2022-12-31
Total Expended
$904,235
Findings
8
Programs
2
Organization: Cheneyville Housing Development Corporation (FL)
Year: 2022 Accepted: 2023-03-26
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
61596 2022-001 - - N
61597 2022-002 - - E
61598 2022-003 - - N
61599 2022-004 - - N
638038 2022-001 - - N
638039 2022-002 - - E
638040 2022-003 - - N
638041 2022-004 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $848,100 Yes 0
14.157 Supportive Housing for the Elderly - Prac $56,135 Yes 4

Contacts

Name Title Type
LEH8WCN7EKA1 Irene Phillips Auditee
9548359200 Jennifer R. Koffman Auditor
No contacts on file

Notes to SEFA

Title: NOTE C - U.S. DEPT. 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 ofCheneyville Housing Development Corporation, operating as Oakwood Apartments, HUD Project No. 064-EE091, 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 Cheneyville Housing Development Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cheneyville Housing Development 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: Cheneyville Housing Development Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Cheneyville Housing Development 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. Cheneyville Housing Development Corporation received no additional loans during the year. The balance of the capital advance outstanding as of December 31, 2022 is $848,100.

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: Fifteen tenants. Sample Size Information: Three tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires annual unit inspections performed in a timely manner and the corresponding documentation maintained. Statement of Condition: The Project did not perform annual unit inspections for three tenants due to safety precautions taken in regard to the coronavirus. Cause: The Project did not conduct the annual unit inspections due to the coronavirus pandemic. Effect or Potential Effect: Unable to determine and assess whether the property has sustained any damages that require repairs. 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 perform annual unit inspections and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 12/31/2023 Response: For the safety of the residents and staff, management advised the site not to perform unit inspections due to COVID.
Finding 2022-002
FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifteen tenants. Sample Size Information: Three tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires all tenants to have income verified through the use of Enterprise Verification (EIV) reports with the corresponding documentation maintained. Statement of Condition: Of the tenant files selected, the Project did not complete nor retain timely verification of income through the use of EIV reports for one tenant. Cause: The Project did not perform/retain timely income verification. Effect or Potential Effect: Eligibility verification not performed nor retained in accordance with HUD regulations. Assistance may be disallowed. 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 implement procedures to ensure the verification of tenant income through the EIV system in a timely manner and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Managers have been trained that all EIV income Reports are required and must be pulled, and reviewed with necessary action taken. Compliance is also sending a reminder email to all managers the first of each month for the managers to run their EIV reports.
Finding 2022-003
FINDING No. 2022-003: 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 regulation, 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 in not in compliance with HUD regulations for the timely renewal of the PRAC contract resulting in the 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: 09/01/2022 Response: Compliance Department is working to create a process for tracking and monitoring PRAC contract renewals. Reminders will be sent out and followed up on to ensure timely submission.
Finding 2022-004
FINDING No. 2022-004: 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: All 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 $550. Cause: The Project submitted a request for suspension of deposits to the replacement reserve account with an effective date of 12/01/2022. This request was not approved before year-end and is currently pending approval as of the issue date of these financial statements. The Project prematurely ceased funding of the replacement reserve account for the 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 the correct amount is deposited in the replacement reserve account each month. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Management has implemented a new procedure to ensure all monthly deposits are made within the current period.
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: Fifteen tenants. Sample Size Information: Three tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires annual unit inspections performed in a timely manner and the corresponding documentation maintained. Statement of Condition: The Project did not perform annual unit inspections for three tenants due to safety precautions taken in regard to the coronavirus. Cause: The Project did not conduct the annual unit inspections due to the coronavirus pandemic. Effect or Potential Effect: Unable to determine and assess whether the property has sustained any damages that require repairs. 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 perform annual unit inspections and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 12/31/2023 Response: For the safety of the residents and staff, management advised the site not to perform unit inspections due to COVID.
Finding 2022-002
FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifteen tenants. Sample Size Information: Three tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires all tenants to have income verified through the use of Enterprise Verification (EIV) reports with the corresponding documentation maintained. Statement of Condition: Of the tenant files selected, the Project did not complete nor retain timely verification of income through the use of EIV reports for one tenant. Cause: The Project did not perform/retain timely income verification. Effect or Potential Effect: Eligibility verification not performed nor retained in accordance with HUD regulations. Assistance may be disallowed. 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 implement procedures to ensure the verification of tenant income through the EIV system in a timely manner and maintain all required tenant documentation. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Managers have been trained that all EIV income Reports are required and must be pulled, and reviewed with necessary action taken. Compliance is also sending a reminder email to all managers the first of each month for the managers to run their EIV reports.
Finding 2022-003
FINDING No. 2022-003: 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 regulation, 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 in not in compliance with HUD regulations for the timely renewal of the PRAC contract resulting in the 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: 09/01/2022 Response: Compliance Department is working to create a process for tracking and monitoring PRAC contract renewals. Reminders will be sent out and followed up on to ensure timely submission.
Finding 2022-004
FINDING No. 2022-004: 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: All 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 $550. Cause: The Project submitted a request for suspension of deposits to the replacement reserve account with an effective date of 12/01/2022. This request was not approved before year-end and is currently pending approval as of the issue date of these financial statements. The Project prematurely ceased funding of the replacement reserve account for the 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 the correct amount is deposited in the replacement reserve account each month. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Management has implemented a new procedure to ensure all monthly deposits are made within the current period.