Audit 6751

FY End
2023-03-31
Total Expended
$1.88M
Findings
2
Programs
3
Year: 2023 Accepted: 2023-12-14

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
4338 2023-001 - - N
580780 2023-001 - - N

Contacts

Name Title Type
SQV3W1J4PPM8 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: Bayamón Senior Citizens Housing Company, Inc. 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 grant activity of Bayamón Senior Citizens Housing Company, Inc., operating as Torre Jesus Sanchez Erazo Apartments, HUD Project 056-EH035, 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 Bayamón Senior Citizens Housing Company, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Bayamón Senior Citizens Housing Company, Inc.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAMS 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: Bayamón Senior Citizens Housing Company, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Bayamón Senior Citizens Housing Company, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act and a flexible subsidy loan under Section 201. The loan balances outstanding at the beginning of the year are included in the federal expenditures presented in the schedule. Bayamón Senior Citizens Housing Company, Inc. received no additional loans during the year. The balance of the Section 202 Supportive Housing for the Elderly loan outstanding as of March 31, 2023 was $220,994. The balance of the Section 201 Operating Assistance for Troubled Multifamily Housing Projects Flexible Subsidy Loan outstanding as of March 31, 2023 was $370,767.

Finding Details

Finding No. 2023-001: Section 8 Housing Assistance Payments Program, ALN 14.195 Finding Resolution Status: Resolved. Information on Universe Population Size: All replacement reserve deposits for the year ended March 31, 2023. Sample Size Information: Required replacement reserve deposits for the year ended March 31, 2023. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulation, timely monthly deposits must be made to the Project’s replacement reserve account. Statement of Condition: The Project underfunded the account by $2,612. Cause: The Project did not fund the replacement reserve account for one month. Effect or Potential Effect: Deficiently funded replacement reserve. Auditor Non-Compliance Code: N – Reserve for Replacement deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 04/24/2023 Response: The accounting staff will now be using monthly checklists to ensure all required deposits are made timely.
Finding No. 2023-001: Section 8 Housing Assistance Payments Program, ALN 14.195 Finding Resolution Status: Resolved. Information on Universe Population Size: All replacement reserve deposits for the year ended March 31, 2023. Sample Size Information: Required replacement reserve deposits for the year ended March 31, 2023. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulation, timely monthly deposits must be made to the Project’s replacement reserve account. Statement of Condition: The Project underfunded the account by $2,612. Cause: The Project did not fund the replacement reserve account for one month. Effect or Potential Effect: Deficiently funded replacement reserve. Auditor Non-Compliance Code: N – Reserve for Replacement deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 04/24/2023 Response: The accounting staff will now be using monthly checklists to ensure all required deposits are made timely.