FAC Explorer

Audit 56991

FY End
2022-12-31
Total Expended
$4.63M
Findings
2
Programs
3
Organization: Senior Citizens Housing Development Corporation of Washington (FL)
Year: 2022 Accepted: 2023-03-29
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
61621 2022-001 - - E
638063 2022-001 - - E

Programs

ALN Program Spent Major Findings
14.155 Section 207/223(f) - Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.70M Yes 1
14.195 Section 8 Housing Assistance Payments Program $853,317 - 0
14.191 Multifamily Housing Service Coordinators $74,500 - 0

Contacts

Name Title Type
GZNJWJH4DK65 Irene Phillips Auditee
9548359200 Jennifer R. Koffman Auditor
No contacts on file

Notes to SEFA

Title: NOTE C - U.S. DEPT. HOUSING AND URBAN DEVELOPMENT MORTGAGE REFINANCE Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of Senior Citizens Housing Development Corporation of Washington, operating as Morton and Florence Bahr Towers, HUD Project No. 000-11202, 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 (CFR) 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 Senior Citizens Housing Development Corporation of Washington, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Senior Citizens Housing Development Corporation of Washington. 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: Senior Citizens Housing Development Corporation of Washington has elected not to use the 10-percent de minimisindirect cost rate allowed under the Uniform Guidance. Senior Citizens Housing Development Corporation of Washington has received a U.S. Department ofHousing and Urban Development Mortgage Insurance for the Refinancing of Existing MultifamilyHousing Projects under Section 207 of the Housing Act. The loan balance outstanding at the beginningof the year is included in the federal expenditures presented in the Schedule. Senior Citizens HousingDevelopment Corporation of Washington received no additional loans during the year. The balance ofthe loan outstanding as of December 31, 2022 was $3,602,715.

Finding Details

Finding 2022-001
FINDING No. 2022-001: Section 207/223(f) Mortgage Insurance for the Refinance of Existing Multifamily Housing, CDFA 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-four tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the Project to conduct background checks on potential tenants prior to acceptance. HUD regulations also stipulate that all addendums to the lease must be signed and maintained as part of lease documentation. Statement of Condition: Of the tenant files selected, one tenant did not have a background check conducted prior to acceptance. Also, none of the files maintained a signed pet policy addenda as part of their lease documentation. Cause: The Project did not maintain appropriate tenant eligibility documentation required by HUD. New tenants were not required to sign the pet policy if there was no indication of owning a pet upon execution of the lease. Effect or Potential Effect: Unable to verify eligibility and cost of 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 recommendation will be adopted. Recommendation: The Project should implement procedures to ensure that required documentation is obtained prior to acceptance and maintained in the tenant files. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Training has been conducted with current and new staff on proper applicant screening procedures and procedures for executing the Pet Policy Lease Addendum. Follow up will be done periodically to ensure procedures are followed and documents maintained in tenant files.
Finding 2022-001
FINDING No. 2022-001: Section 207/223(f) Mortgage Insurance for the Refinance of Existing Multifamily Housing, CDFA 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-four tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the Project to conduct background checks on potential tenants prior to acceptance. HUD regulations also stipulate that all addendums to the lease must be signed and maintained as part of lease documentation. Statement of Condition: Of the tenant files selected, one tenant did not have a background check conducted prior to acceptance. Also, none of the files maintained a signed pet policy addenda as part of their lease documentation. Cause: The Project did not maintain appropriate tenant eligibility documentation required by HUD. New tenants were not required to sign the pet policy if there was no indication of owning a pet upon execution of the lease. Effect or Potential Effect: Unable to verify eligibility and cost of 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 recommendation will be adopted. Recommendation: The Project should implement procedures to ensure that required documentation is obtained prior to acceptance and maintained in the tenant files. Response Indicator: Agree. Completion Date: 12/31/2023 Response: Training has been conducted with current and new staff on proper applicant screening procedures and procedures for executing the Pet Policy Lease Addendum. Follow up will be done periodically to ensure procedures are followed and documents maintained in tenant files.