FAC Explorer

Audit 7120

FY End
2023-03-31
Total Expended
$2.99M
Findings
4
Programs
2
Organization: Sen Citizens Hsg Dev Fund CORP of Steuben County Two,inc (FL)
Year: 2023 Accepted: 2023-12-18
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
4921 2023-001 - - N
4922 2023-002 - - N
581363 2023-001 - - N
581364 2023-002 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $2.70M Yes 0
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract - (prac) $292,296 Yes 2

Contacts

Name Title Type
JG7FJBLJZPW8 Irene Phillips Auditee
9548359200 Dina Bellows-Levine 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: Senior Citizens Housing Development Fund Corporation of Steuben County Two, 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 award activity of Senior Citizens Housing Development Fund Corporation of Steuben County Two, Inc., HUD Project No. 014- EE043, 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 Senior Citizens Housing Development Fund Corporation of Steuben County Two, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Senior Citizens Housing Development Fund Corporation of Steuben County Two, Inc.
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: Senior Citizens Housing Development Fund Corporation of Steuben County Two, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Senior Citizens Housing Development Fund Corporation of Steuben County Two, Inc. 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. Senior Citizens Housing Development Fund Corporation of Steuben County Two, Inc. received no additional loans during the year. The balance of the capital advance outstanding as of March 31, 2023 was $2,695,400.

Finding Details

Finding 2023-001
FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed 120 days prior to the PRAC expiration date. Statement of Condition: The Project did not complete the renewal process 120 days prior to the PRAC expiration date of October 30, 2022. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in the delay of HUD funding. Effect or Potential Effect: The Project is not in compliance with HUD regulations for timely renewal of PRAC contract resulting in delayed receipt of HAP funds. 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 have been adopted. Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding. Response Indicator: Agree. Completion Date: 12/09/2022 Response: Management has implemented new procedures in addition to having compliance send email reminders to ensure the timely processing of PRAC renewals.
Finding 2023-002
FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended March 31, 2023. Sample Size Information: All 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 Replacement Reserve account. Statement of Condition: The Project underfunded the account by $1,225. Cause: The Project received approval for an increase to the monthly deposit into the replacement reserve account with an effective date of October 31, 2022. The Project did not implement the required monthly deposits into replacement reserve account in a timely manner. 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 will be adopted. Recommendation: The Project should implement procedures to ensure the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 03/31/2024 Response: Management deposited the correct amount into the replacement reserve account, however there was a miscalculation due to the unused portion of a pre-release 9250 being included in the calculation of required deposits. A new process has been put into place ensuring all unused 9250 funds are reimbursed and a proper description is used to identify the reimbursement vs. funding.
Finding 2023-001
FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed 120 days prior to the PRAC expiration date. Statement of Condition: The Project did not complete the renewal process 120 days prior to the PRAC expiration date of October 30, 2022. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in the delay of HUD funding. Effect or Potential Effect: The Project is not in compliance with HUD regulations for timely renewal of PRAC contract resulting in delayed receipt of HAP funds. 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 have been adopted. Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding. Response Indicator: Agree. Completion Date: 12/09/2022 Response: Management has implemented new procedures in addition to having compliance send email reminders to ensure the timely processing of PRAC renewals.
Finding 2023-002
FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended March 31, 2023. Sample Size Information: All 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 Replacement Reserve account. Statement of Condition: The Project underfunded the account by $1,225. Cause: The Project received approval for an increase to the monthly deposit into the replacement reserve account with an effective date of October 31, 2022. The Project did not implement the required monthly deposits into replacement reserve account in a timely manner. 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 will be adopted. Recommendation: The Project should implement procedures to ensure the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 03/31/2024 Response: Management deposited the correct amount into the replacement reserve account, however there was a miscalculation due to the unused portion of a pre-release 9250 being included in the calculation of required deposits. A new process has been put into place ensuring all unused 9250 funds are reimbursed and a proper description is used to identify the reimbursement vs. funding.