Finding 1101718 (2024-003)

-
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-03
Audit: 344496
Organization: Sessions Village 202 171-Ee015 (WA)

AI Summary

  • Core Issue: Sessions Village 202 failed to submit audited financial statements to HUD by the required deadline for the fiscal year ending September 30, 2024.
  • Impacted Requirements: The project did not comply with the regulatory agreement, which mandates submission within 90 days of the fiscal year end.
  • Recommended Follow-Up: Implement internal controls to ensure timely filing of audited financial statements in accordance with regulatory requirements.

Finding Text

S3800-010 Finding Reference Number – 2024-003 S3800-011 Title and CFDA Number of Federal Program – Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 S3800-015 Type of Finding – Federal Award Finding; Other Matters S3800-016 Finding Resolution Status – Resolved S3800-017 Information on Universe Population Size – N/A S3800-018 Sample Size Information – N/A S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A S3800-020 Criteria – Per the regulatory agreement Section 11(f) for a Project under the ALN 14.157, the Project is required to submit the audited financial statements to HUD within 90 days of a Project’s fiscal year end. S3800-030 Statement of Condition – Sessions Village 202 did not meet the financial statement filing requirements for the year ended September 30, 2024. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements. S3800-032 Cause – Sessions Village 202 was not able to meet the financial statement filing deadline for the year ended September 30, 2024. S3800-033 Effect or Potential Effect – HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement.  S3800-035 Auditor Non-Compliance Code – Z (Other) S3800-037 FHA/Contract Number – 171-EE015 S3800-038 Questioned Costs – $0 S3800-040 Questioned Costs – $0 S3800-045 Reporting Views of Responsible Officials – Sessions Village 202 is in agreement with the findings, and the recommendations have been implemented. S3800-080 Recommendation – We recommend Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations – On February 8, 2025, the audit was submitted to HUD through REAC. Sessions Village 202 will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward. S3800-130 Response Indicator – Agree S3800-140 Completion Date – February 8, 2025 S3800-150 Response – On February 8, 2025, the audit was submitted to HUD through REAC. Sessions Village 202 will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward.

Categories

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $350,000
14.157 Supportive Housing for the Elderly $122,338