Finding Text
A. Summary of Auditor's Results 1. The auditor's report expresses a unmodified opinion on whether the financial statements of Geneva Avenue Elderly Housing, Inc. were prepared in accordance with generally accepted accounting principles. 2. No significant deficiencies related to the audit of the financial statements were reported in the Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. No material weaknesses were reported. 3. One instance of noncompliance material to the financial statements of Geneva Avenue Elderly Housing, Inc., which would be required to be reported in accordance with Government Auditing Standards, was disclosed during the audit. 4. One significant deficiency in internal control over major federal award programs was disclosed during the audit and reported in the Independent Auditor's Report on Compliance for the Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance. No material weaknesses were reported. 5. The auditor's report on compliance for the major federal award programs for Geneva Avenue Elderly Housing, Inc. expresses a qualified opinion on all major federal programs. 6. There is one audit finding required to be reported in accordance with 2 CFR Section 200.516(a) in this Schedule. 7. The programs tested as major programs included: CFDA Number Name of Federal Program 14.157 HUD Section 202 (Capital Advance) 8. The threshold for distinguishing between Type A and B programs was $750,000. 9. Geneva Avenue Elderly Housing, Inc. was determined to be a low risk auditee. B. Financial Statement Findings None reported C. Federal Award Findings and Questioned Costs Department of Housing and Urban Development Finding No. 2022-001; Assistance Listing No. 14.157 Support Housing for the Elderly (Section 202) Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4571.3, Section 202 Supportive Housing for the Elderly. Condition In connection with our lease file testing, we noted that six tenant files out of the six tenant files tested did not have the EIV completed timely for the most recent annual recertification. Cause There was an administrative error involving personnel involved in the annual recertification process resulting in the EIV reports not being run in accordance with the HUD program guidelines. Effect or Potential Effect The Corporation is not in compliance with HUD Program guidelines. Recommendation The Corporation should ensure that EIV reports are run timely in connection with the annual recertification in accordance with the HUD Program guidelines, and it should monitor its compliance with those policies and procedures. Auditor Noncompliance Code: R - Section 8 program administration Reporting Views of Responsible Officials: Management concurs with the finding. Management has communicated with the staff the importance of completing EIV reports in accordance with HUD Program guidelines, and on a go forward basis will enhance its monitoring of compliance with this requirement to ensure that EIV's are run within an appropriate time frame.