Audit 6374

FY End
2023-08-31
Total Expended
$6.95M
Findings
30
Programs
1
Organization: Newbury Elderly Housing, Inc. (NH)
Year: 2023 Accepted: 2023-12-13

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
4044 2023-001 - - E
4045 2023-002 - - E
4046 2023-001 - - E
4047 2023-002 - - E
4048 2023-003 - - P
4049 2023-003 - - P
4050 2023-004 Significant Deficiency - P
4051 2023-004 Significant Deficiency - P
4052 2023-005 Significant Deficiency Yes B
4053 2023-005 Significant Deficiency Yes B
4054 2023-001 - - E
4055 2023-002 - - E
4056 2023-003 - - P
4057 2023-004 Significant Deficiency - P
4058 2023-005 Significant Deficiency Yes B
580486 2023-001 - - E
580487 2023-002 - - E
580488 2023-001 - - E
580489 2023-002 - - E
580490 2023-003 - - P
580491 2023-003 - - P
580492 2023-004 Significant Deficiency - P
580493 2023-004 Significant Deficiency - P
580494 2023-005 Significant Deficiency Yes B
580495 2023-005 Significant Deficiency Yes B
580496 2023-001 - - E
580497 2023-002 - - E
580498 2023-003 - - P
580499 2023-004 Significant Deficiency - P
580500 2023-005 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $338,825 Yes 5

Contacts

Name Title Type
HZ8JHE9F5XF5 Jill Lesmerises Auditee
6032253295 Shauna Brown Auditor
No contacts on file

Notes to SEFA

Title: NOTE C: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: NOTE A: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards includes the federal award activity of Newbury Elderly Housing, Inc., HUD Project No. 024-EE120, 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 Newbury Elderly Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Newbury Elderly Housing, Inc. 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: Newbury Elderly Housing, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Newbury Elderly Housing, Inc. has received a U.S. Department of Housing and Urban Development capital advance and pre-development grant under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Newbury Elderly Housing, Inc. received no additional loans during the year. The balance of the loans outstanding at August 31, 2023 consists of: 14.157 Capital Advance/DPG $6,716,425

Finding Details

Information on universe: Total population was 35 files. Sample Size: 5 files were selected for testing. Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run, due to the license expiring and the person with the license was no longer working there. Criteria: HUD requires EIV forms to be run, monthly, quarterly and annually. Effect: Required documents were not in the files. Context: Auditor reviewed tenant files noting the form was not present in the tenant files. Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization. Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Information on universe: Total population was 35 files. Sample Size: 5 files were selected for testing. Condition: Additional files had to be selected due to two of the files missing the recertification paperwork including the 50059. Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file. Effect: Auditor was unable to test these two files and additional files were selected. Context: Auditor selected tenant files and was unable to test two of the files resulting in additional files needing to be tested. Cause: Turnover at the management agent. Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe: Total population was 35 files. Sample Size: 5 files were selected for testing. Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run, due to the license expiring and the person with the license was no longer working there. Criteria: HUD requires EIV forms to be run, monthly, quarterly and annually. Effect: Required documents were not in the files. Context: Auditor reviewed tenant files noting the form was not present in the tenant files. Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization. Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Information on universe: Total population was 35 files. Sample Size: 5 files were selected for testing. Condition: Additional files had to be selected due to two of the files missing the recertification paperwork including the 50059. Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file. Effect: Auditor was unable to test these two files and additional files were selected. Context: Auditor selected tenant files and was unable to test two of the files resulting in additional files needing to be tested. Cause: Turnover at the management agent. Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe and sample size: Accounts were selected during preliminary analytics due to the unusual balance. Condition: Required maintenance was not performed in a timely manner. Criteria: All maintenance should be performed in a timely manner. Effect: Several tenant units and common areas have not been completely remedied from the flood. Context: Auditor noted that there was a flood during the year due to burst pipes which was covered by an insurance reimbursement. The project was started and never completed once the contractor left and never came back. Management did not secure a new contractor to complete the work. Cause: Turnover at the management agent and lack of available contractors in a rural area. Recommendation: The Housing Director should be monitoring all major maintenance projects to ensure they are completed in a timely manner even with turnover at the project level.
Information on universe and sample size: Accounts were selected during preliminary analytics due to the unusual balance. Condition: Required maintenance was not performed in a timely manner. Criteria: All maintenance should be performed in a timely manner. Effect: Several tenant units and common areas have not been completely remedied from the flood. Context: Auditor noted that there was a flood during the year due to burst pipes which was covered by an insurance reimbursement. The project was started and never completed once the contractor left and never came back. Management did not secure a new contractor to complete the work. Cause: Turnover at the management agent and lack of available contractors in a rural area. Recommendation: The Housing Director should be monitoring all major maintenance projects to ensure they are completed in a timely manner even with turnover at the project level.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner. Condition: HUD forms must be certified by an authorized user. Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to. Effect: The forms were not certified by the correct individual. Context: Auditor reviewed source documents noting incorrect certifier. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner. Condition: HUD forms must be certified by an authorized user. Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to. Effect: The forms were not certified by the correct individual. Context: Auditor reviewed source documents noting incorrect certifier. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Information on universe: Internal control testing. Sample size: Six employees selected for internal control testing. Identification of repeat finding: Repeat finding. Condition: Additional detail and documentation is needed on time sheets for allocation to projects from one employee. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Without stronger controls around allocations, improper allocations could occur. Context: Auditor selected timesheets for payroll control testing. Cause: Lack of policy surrounding time reporting. Recommendation: Job duties should be documented for each position and implement a policy to ensure all time sheets detail out the duties performed.
Information on universe: Internal control testing. Sample size: Six employees selected for internal control testing. Identification of repeat finding: Repeat finding. Condition: Additional detail and documentation is needed on time sheets for allocation to projects from one employee. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Without stronger controls around allocations, improper allocations could occur. Context: Auditor selected timesheets for payroll control testing. Cause: Lack of policy surrounding time reporting. Recommendation: Job duties should be documented for each position and implement a policy to ensure all time sheets detail out the duties performed.
Information on universe: Total population was 35 files. Sample Size: 5 files were selected for testing. Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run, due to the license expiring and the person with the license was no longer working there. Criteria: HUD requires EIV forms to be run, monthly, quarterly and annually. Effect: Required documents were not in the files. Context: Auditor reviewed tenant files noting the form was not present in the tenant files. Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization. Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Information on universe: Total population was 35 files. Sample Size: 5 files were selected for testing. Condition: Additional files had to be selected due to two of the files missing the recertification paperwork including the 50059. Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file. Effect: Auditor was unable to test these two files and additional files were selected. Context: Auditor selected tenant files and was unable to test two of the files resulting in additional files needing to be tested. Cause: Turnover at the management agent. Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe and sample size: Accounts were selected during preliminary analytics due to the unusual balance. Condition: Required maintenance was not performed in a timely manner. Criteria: All maintenance should be performed in a timely manner. Effect: Several tenant units and common areas have not been completely remedied from the flood. Context: Auditor noted that there was a flood during the year due to burst pipes which was covered by an insurance reimbursement. The project was started and never completed once the contractor left and never came back. Management did not secure a new contractor to complete the work. Cause: Turnover at the management agent and lack of available contractors in a rural area. Recommendation: The Housing Director should be monitoring all major maintenance projects to ensure they are completed in a timely manner even with turnover at the project level.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner. Condition: HUD forms must be certified by an authorized user. Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to. Effect: The forms were not certified by the correct individual. Context: Auditor reviewed source documents noting incorrect certifier. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Information on universe: Internal control testing. Sample size: Six employees selected for internal control testing. Identification of repeat finding: Repeat finding. Condition: Additional detail and documentation is needed on time sheets for allocation to projects from one employee. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Without stronger controls around allocations, improper allocations could occur. Context: Auditor selected timesheets for payroll control testing. Cause: Lack of policy surrounding time reporting. Recommendation: Job duties should be documented for each position and implement a policy to ensure all time sheets detail out the duties performed.
Information on universe: Total population was 35 files. Sample Size: 5 files were selected for testing. Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run, due to the license expiring and the person with the license was no longer working there. Criteria: HUD requires EIV forms to be run, monthly, quarterly and annually. Effect: Required documents were not in the files. Context: Auditor reviewed tenant files noting the form was not present in the tenant files. Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization. Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Information on universe: Total population was 35 files. Sample Size: 5 files were selected for testing. Condition: Additional files had to be selected due to two of the files missing the recertification paperwork including the 50059. Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file. Effect: Auditor was unable to test these two files and additional files were selected. Context: Auditor selected tenant files and was unable to test two of the files resulting in additional files needing to be tested. Cause: Turnover at the management agent. Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe: Total population was 35 files. Sample Size: 5 files were selected for testing. Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run, due to the license expiring and the person with the license was no longer working there. Criteria: HUD requires EIV forms to be run, monthly, quarterly and annually. Effect: Required documents were not in the files. Context: Auditor reviewed tenant files noting the form was not present in the tenant files. Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization. Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Information on universe: Total population was 35 files. Sample Size: 5 files were selected for testing. Condition: Additional files had to be selected due to two of the files missing the recertification paperwork including the 50059. Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file. Effect: Auditor was unable to test these two files and additional files were selected. Context: Auditor selected tenant files and was unable to test two of the files resulting in additional files needing to be tested. Cause: Turnover at the management agent. Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe and sample size: Accounts were selected during preliminary analytics due to the unusual balance. Condition: Required maintenance was not performed in a timely manner. Criteria: All maintenance should be performed in a timely manner. Effect: Several tenant units and common areas have not been completely remedied from the flood. Context: Auditor noted that there was a flood during the year due to burst pipes which was covered by an insurance reimbursement. The project was started and never completed once the contractor left and never came back. Management did not secure a new contractor to complete the work. Cause: Turnover at the management agent and lack of available contractors in a rural area. Recommendation: The Housing Director should be monitoring all major maintenance projects to ensure they are completed in a timely manner even with turnover at the project level.
Information on universe and sample size: Accounts were selected during preliminary analytics due to the unusual balance. Condition: Required maintenance was not performed in a timely manner. Criteria: All maintenance should be performed in a timely manner. Effect: Several tenant units and common areas have not been completely remedied from the flood. Context: Auditor noted that there was a flood during the year due to burst pipes which was covered by an insurance reimbursement. The project was started and never completed once the contractor left and never came back. Management did not secure a new contractor to complete the work. Cause: Turnover at the management agent and lack of available contractors in a rural area. Recommendation: The Housing Director should be monitoring all major maintenance projects to ensure they are completed in a timely manner even with turnover at the project level.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner. Condition: HUD forms must be certified by an authorized user. Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to. Effect: The forms were not certified by the correct individual. Context: Auditor reviewed source documents noting incorrect certifier. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner. Condition: HUD forms must be certified by an authorized user. Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to. Effect: The forms were not certified by the correct individual. Context: Auditor reviewed source documents noting incorrect certifier. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Information on universe: Internal control testing. Sample size: Six employees selected for internal control testing. Identification of repeat finding: Repeat finding. Condition: Additional detail and documentation is needed on time sheets for allocation to projects from one employee. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Without stronger controls around allocations, improper allocations could occur. Context: Auditor selected timesheets for payroll control testing. Cause: Lack of policy surrounding time reporting. Recommendation: Job duties should be documented for each position and implement a policy to ensure all time sheets detail out the duties performed.
Information on universe: Internal control testing. Sample size: Six employees selected for internal control testing. Identification of repeat finding: Repeat finding. Condition: Additional detail and documentation is needed on time sheets for allocation to projects from one employee. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Without stronger controls around allocations, improper allocations could occur. Context: Auditor selected timesheets for payroll control testing. Cause: Lack of policy surrounding time reporting. Recommendation: Job duties should be documented for each position and implement a policy to ensure all time sheets detail out the duties performed.
Information on universe: Total population was 35 files. Sample Size: 5 files were selected for testing. Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run, due to the license expiring and the person with the license was no longer working there. Criteria: HUD requires EIV forms to be run, monthly, quarterly and annually. Effect: Required documents were not in the files. Context: Auditor reviewed tenant files noting the form was not present in the tenant files. Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization. Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Information on universe: Total population was 35 files. Sample Size: 5 files were selected for testing. Condition: Additional files had to be selected due to two of the files missing the recertification paperwork including the 50059. Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file. Effect: Auditor was unable to test these two files and additional files were selected. Context: Auditor selected tenant files and was unable to test two of the files resulting in additional files needing to be tested. Cause: Turnover at the management agent. Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe and sample size: Accounts were selected during preliminary analytics due to the unusual balance. Condition: Required maintenance was not performed in a timely manner. Criteria: All maintenance should be performed in a timely manner. Effect: Several tenant units and common areas have not been completely remedied from the flood. Context: Auditor noted that there was a flood during the year due to burst pipes which was covered by an insurance reimbursement. The project was started and never completed once the contractor left and never came back. Management did not secure a new contractor to complete the work. Cause: Turnover at the management agent and lack of available contractors in a rural area. Recommendation: The Housing Director should be monitoring all major maintenance projects to ensure they are completed in a timely manner even with turnover at the project level.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner. Condition: HUD forms must be certified by an authorized user. Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to. Effect: The forms were not certified by the correct individual. Context: Auditor reviewed source documents noting incorrect certifier. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Information on universe: Internal control testing. Sample size: Six employees selected for internal control testing. Identification of repeat finding: Repeat finding. Condition: Additional detail and documentation is needed on time sheets for allocation to projects from one employee. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Without stronger controls around allocations, improper allocations could occur. Context: Auditor selected timesheets for payroll control testing. Cause: Lack of policy surrounding time reporting. Recommendation: Job duties should be documented for each position and implement a policy to ensure all time sheets detail out the duties performed.