FAC Explorer

Audit 7021

FY End
2023-06-30
Total Expended
$11.50M
Findings
2
Programs
2
Organization: Presidio Village Senior Housing, Inc. (CA)
Year: 2023 Accepted: 2023-12-15
Auditor: Snd Partners LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
4869 2023-001 - - N
581311 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.15M Yes 0
14.239 Home Investment Partnerships Program $850,000 Yes 0

Contacts

Name Title Type
NBDLYK55HKK6 Thomas Lafluer Auditee
4154391056 Courtney Sharp Auditor
No contacts on file

Notes to SEFA

Title: NOTE C – LOAN PROGRAM BALANCES OUTSTANDING Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal award activity of Presidio Village Senior Housing, Inc., FHA Project No. 121-EE031-NP, 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 Presidio Village Senior Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Presidio Village Senior Housing, Inc. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Presidio Village Senior Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Loan balances outstanding as of June 30, 2023 are as follows: Supportive Housing for the Elderly Capital Advance Mortgage $9,495,400 HOME Investment Partnership Program Loan $850,000

Finding Details

Finding 2023-001
Finding #: 2023-001 Federal Grantor: U.S. Department of Housing and Urban Development AL # / Program : 14.157 - Supportive Housing for the Elderly Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: There were three replacement reserve disbursements during the year. Sample size information: Tests were performed on all three replacement reserve releases Criteria: The Supportive Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement signed by the Project requires the Project to obtain HUD approval prior to release from the reserve for replacements. Statement of Condition: The Project is not in compliance with the Supportive Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Cause: A deficiency in controls over compliance with the compliance requirements in the Supportive Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Effect or Potential Effect: The Project is not in compliance with the Supportive Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Auditor Non-Compliance Code: A - Unauthorized withdrawals from replacement reserve account Questioned Costs: $37,216 Reporting Views of Responsible Officials: Agree with finding. Context: The Project is not in compliance with the Supportive Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Recommendations: We recommend that Management review their controls over compliance with the compliance requirements in the Supportive Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: The replacement reserve was refunded the $37,216 on 8/11/2023. Controls have been put in place to prevent the unauthorized withdrawal of replacement reserve funds. Response Indicator Agree Completion Date: 8/11/2023 Response: The replacement reserve was refunded the $37,216 on 8/11/2023. Controls have been put in place to prevent the unauthorized withdrawal of replacement reserve funds.
Finding 2023-001
Finding #: 2023-001 Federal Grantor: U.S. Department of Housing and Urban Development AL # / Program : 14.157 - Supportive Housing for the Elderly Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: There were three replacement reserve disbursements during the year. Sample size information: Tests were performed on all three replacement reserve releases Criteria: The Supportive Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement signed by the Project requires the Project to obtain HUD approval prior to release from the reserve for replacements. Statement of Condition: The Project is not in compliance with the Supportive Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Cause: A deficiency in controls over compliance with the compliance requirements in the Supportive Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Effect or Potential Effect: The Project is not in compliance with the Supportive Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Auditor Non-Compliance Code: A - Unauthorized withdrawals from replacement reserve account Questioned Costs: $37,216 Reporting Views of Responsible Officials: Agree with finding. Context: The Project is not in compliance with the Supportive Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Recommendations: We recommend that Management review their controls over compliance with the compliance requirements in the Supportive Housing for the Elderly Section 202 of the Housing Act of 1959 Regulatory Agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: The replacement reserve was refunded the $37,216 on 8/11/2023. Controls have been put in place to prevent the unauthorized withdrawal of replacement reserve funds. Response Indicator Agree Completion Date: 8/11/2023 Response: The replacement reserve was refunded the $37,216 on 8/11/2023. Controls have been put in place to prevent the unauthorized withdrawal of replacement reserve funds.