FAC Explorer

Finding 1160656 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-10-16
Audit: 370922
Organization: Senior Citizens Housing Development Fund Corporation of Steuben County (FL)
Auditor: Bellows Associates P A

AI Summary

  • Core Issue: The Project mistakenly paid $7,840 in real estate taxes for another project due to similar names.
  • Impacted Requirements: HUD mandates that all disbursements must be for activities directly related to the Project.
  • Recommended Follow-Up: Enhance payment procedures and provide staff training to ensure invoices are correctly matched to the Project.

Finding Text

FINDING No. 2025-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Real estate taxes. Sample Size Information: Real estate taxes. Identification of Repeat Finding and Finding Reference Number: No. Criteria: Per HUD, all disbursements must only be used to pay for activities of the Project. Statement of Condition: The Project paid a real estate tax invoice that pertained to another Project in the amount of $7,840. Cause: The Project inadvertently paid an invoice on behalf of another project with a similar name. Effect or Potential Effect: Improper use of Project funds. Auditor Non-Compliance Code: S - Internal Control Deficiencies Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should improve procedures to ensure payments made are for invoices in the name of the Project and the associated costs are reasonable and necessary for the Project. Response Indicator: Agree. Completion Date: 3/31/2026 Response: Staff training has been provided to ensure proper procedures are followed.

Corrective Action Plan

Oversight Agency for Audit, Senior Citizens Housing Development Fund Corporation of Steuben County respectfully submits the following corrective action plan for the year ended March 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201 Coral Springs, Florida 33067. Audit period: April 1, 2024 through March 31, 2025. The finding from the March 31, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING NO. 2025-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: Management should improve procedures to ensure payments made are for invoices in the name of the Project and the associated costs are reasonable and necessary for the Project. Action Taken: Staff training has been provided to ensure proper procedures are followed. If the audit Oversight Agency has questions regarding these plans, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips CFO

Categories

HUD Housing Programs Reporting

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $6.13M
14.195 Project-Based Rental Assistance (pbra) $1.04M