FAC Explorer

Audit 6743

FY End
2023-03-31
Total Expended
$1.21M
Findings
2
Programs
2
Organization: Morse Elderly Housing Corporation (FL)
Year: 2023 Accepted: 2023-12-14
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
4326 2023-001 - - E
580768 2023-001 - - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $1.08M Yes 0
14.157 Supportive Housing for the Elderly - Project Rental Asssitance Contracts (prac) $125,323 Yes 1

Contacts

Name Title Type
L3TRWMP1GK49 Irene Phillips Auditee
9548359200 Jennifer R. Koffman Auditor
No contacts on file

Notes to SEFA

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: Morse Elderly Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Morse Elderly Housing Corporation, HUD Project No. 064-EE066, 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 Morse Elderly Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Morse Elderly Housing Corporation.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 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: Morse Elderly Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Morse 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. Morse Elderly Housing Corporation received no additional loans during the year. The balance of the capital advance outstanding as of March 31, 2023 was $1,083,400.

Finding Details

Finding 2023-001
FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Twenty tenants. Sample Size Information: Three tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require timely verification of tenant’s initial income through Enterprise Income Verification (EIV) performed within 90 days of the tenant being entered into Tenant Rental Assistance Certification System (TRACS) with the corresponding documentation maintained. Statement of Condition: The Project did not perform and/or maintain the initial EIV report for one tenant. Cause: The Project did not maintain appropriate tenant eligibility documentation in accordance with HUD regulations. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency 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 that initial eligibility procedures are performed in a timely manner and that the corresponding documentation is maintained. Response Indicator: Agree. Completion Date: 03/31/2024 Response: The former community manager did not run an EIV timely as per HUD guidelines. We have provided staff with additional HUD training and we have set up automatic alerts to remind managers to pull the 90 day EIV Income Report based on individual tenant move in dates.
Finding 2023-001
FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Twenty tenants. Sample Size Information: Three tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require timely verification of tenant’s initial income through Enterprise Income Verification (EIV) performed within 90 days of the tenant being entered into Tenant Rental Assistance Certification System (TRACS) with the corresponding documentation maintained. Statement of Condition: The Project did not perform and/or maintain the initial EIV report for one tenant. Cause: The Project did not maintain appropriate tenant eligibility documentation in accordance with HUD regulations. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency 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 that initial eligibility procedures are performed in a timely manner and that the corresponding documentation is maintained. Response Indicator: Agree. Completion Date: 03/31/2024 Response: The former community manager did not run an EIV timely as per HUD guidelines. We have provided staff with additional HUD training and we have set up automatic alerts to remind managers to pull the 90 day EIV Income Report based on individual tenant move in dates.