EIN: 061474439
UEI: XELLVRZ1PZP7
Data as of August 25, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 15, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 15, 2024 (710 days ago).
What is a management decision? →Upon performing testing over payroll disbursements, we noted that there was no approval of the timesheets for payroll disbursements tested. Questioned costs: None Context: The timesheet for 4 out of 4 payroll disbursements tested was not properly approved by the property manager. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over payroll disbursements. Effect: There is no evidence of proper approval of payroll disbursement. Repeat Finding: Yes Recommendation: We recommend that management strengthen controls over review of payroll. Views of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Listing Number: 14.181 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: According to the client's internal control over payroll disbursements, hourly employees must maintain timesheets which are approved and signed by the property manager. Condition: Upon performing testing over payroll disbursements, we noted that there was no approval of the timesheets for payroll disbursements tested. Questioned costs: None Context: The timesheet for 4 out of 4 payroll disbursements tested was not properly approved by the property manager. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over payroll disbursements. Effect: There is no evidence of proper approval of payroll disbursement. Repeat Finding: Yes Recommendation: We recommend that management strengthen controls over review of payroll. Views of Responsible Officials: There is no disagreement with the audit finding.
Supportive Housing for Persons With Disabilities – Assistance Listing No. 14.181 Criteria or Specific Requirement: According to the client's internal control over payroll disbursements, hourly employees must maintain timesheets which are approved and signed by the property manager. Condition: Upon performing testing over payroll disbursements, we noted that there was no approval of the timesheet for the payroll disbursements tested. Questioned costs: None Context: The timesheet for 4 out of 4 payroll disbursements tested was not properly approved by the property manager. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over payroll disbursements. Effect: There is no evidence of proper approval of payroll disbursement. Repeat Finding: Yes Recommendation: We recommend that management strengthen controls over review of payroll. Views of Responsible Officials: There is no disagreement with the audit finding. Action taken in response to finding: Although other controls and reviews around compensation help safeguard and mitigate compensation errors, the property manager will ensure that all time sheets are properly approved prior to payment as a first line of internal controls. Name of the contact person responsible for corrective action: Angela Westwood, CFO Planned completion date for corrective action plan: May 30, 2024.
2022-005
FAC accepted this audit on March 23, 2023 — management decision was due September 23, 2023.
Upon performing testing over tenant rent and eligibility, we noted that annual recertifications were not completed timely. Questioned costs: None Context: Annual recertifications for 3 out of 5 tenants tested were not performed. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over timely completion of tenant annual recertifications. Effect: Untimely performance of required annual recertifications could affect the household?s eligibility for project rental assistance payments. Repeat Finding: Yes Recommendation: We recommend that all required annual recertifications be completed timely. Views of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴2022 ? 002 Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Listing Number: 14.181 Award Period: 2022 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: As per 24 CFR 891.410 Selection and Admission of Tenants, the owner must reexamine the income and composition of the household at least every 12 months. Upon verification of the information, the Owner must make appropriate adjustments in the total tenant payment in accordance with federal regulations and must determine whether the household unit size is still appropriate. Condition: Upon performing testing over tenant rent and eligibility, we noted that annual recertifications were not completed timely. Questioned costs: None Context: Annual recertifications for 3 out of 5 tenants tested were not performed. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over timely completion of tenant annual recertifications. Effect: Untimely performance of required annual recertifications could affect the household?s eligibility for project rental assistance payments. Repeat Finding: Yes Recommendation: We recommend that all required annual recertifications be completed timely. Views of Responsible Officials: There is no disagreement with the audit finding.
Supportive Housing for Persons With Disabilities ? Assistance Listing No. 14.181 Criteria or Specific Requirement: As per 24 CFR 891.410 Selection and Admission of Tenants, the owner must reexamine the income and composition of the household at least every 12 months. Upon verification of the information, the Owner must make appropriate adjustments in the total tenant payment in accordance with federal regulations and must determine whether the household unit size is still appropriate. Condition: Upon performing testing over tenant rent and eligibility, we noted that annual recertifications were not completed timely. Questioned costs: None Context: Annual recertifications for 3 out of 5 tenants tested were not performed. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over timely completion of tenant annual recertifications. Effect: Untimely performance of required annual recertifications could affect the household?s eligibility for project rental assistance payments. Repeat Finding: Yes Recommendation: We recommend that all required annual recertifications be completed timely. Views of Responsible Officials: There is no disagreement with the audit finding. Action taken in response to finding: Sponsor has requested a meeting with senior property management team to discuss lack of transparency with problems in this area. We are in the process of obtaining a current list of clients and their recertification dates. We will monitor monthly and follow up with management company and help from case managers to work with tenants to provide the needed information. Property management has new hires in the pipeline that should be up and running no later than 4/1/2023 to help mitigate the issues. Name of the contact person responsible for corrective action: Angela Westwood, CFO Planned completion date for corrective action plan: Immediately
2021-002
Upon performing testing over tenant eligibility, we noted that the eligibility documentation for one of the tenants was missing and could not be located. Questioned costs: None Context: Eligibility documentation for 1 out of 5 tenants tested was missing. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over tenant eligibility documentation. Effect: There is no evidence that review of tenant's eligibility was performed. Tenant could be ineligible. Repeat Finding: No Recommendation: We recommend that management strengthen controls over review and retention of tenant eligibility files. Views of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴2022 ? 003 Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Listing Number: 14.181 Award Period: 2022 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Section 811 of the National Affordable Housing Act provides funding for housing for persons with disabilities. To qualify as disabled, the household must consist of at least one person who is an adult (18 years or older) with a disability, two or more persons with disabilities living together, or a surviving household member under certain circumstances (42 USC 1437a(b)(3); 24 CFR section 891.505). Residents must also qualify as very low-income households to be eligible (42USC 8013). Condition: Upon performing testing over tenant eligibility, we noted that the eligibility documentation for one of the tenants was missing and could not be located. Questioned costs: None Context: Eligibility documentation for 1 out of 5 tenants tested was missing. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over tenant eligibility documentation. Effect: There is no evidence that review of tenant's eligibility was performed. Tenant could be ineligible. Repeat Finding: No Recommendation: We recommend that management strengthen controls over review and retention of tenant eligibility files. Views of Responsible Officials: There is no disagreement with the audit finding.
Supportive Housing for Persons With Disabilities ? Assistance Listing No. 14.181 Criteria or Specific Requirement: Section 811 of the National Affordable Housing Act provides funding for housing for persons with disabilities. To qualify as disabled, the household must consist of at least one person who is an adult (18 years or older) with a disability, two or more persons with disabilities living together, or a surviving household member under certain circumstances (42 USC 1437a(b)(3); 24 CFR section 891.505). Residents must also qualify as very low-income households to be eligible (42USC 8013). Condition: Upon performing testing over tenant eligibility, we noted that the eligibility documentation for one of the tenants was missing and could not be located. Questioned costs: None Context: Eligibility documentation for 1 out of 5 tenants tested was missing. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over tenant eligibility documentation. Effect: There is no evidence that review of tenant's eligibility was performed. Tenant could be ineligible. Repeat Finding: No Recommendation: We recommend that management strengthen controls over review and retention of tenant eligibility files. Views of Responsible Officials: There is no disagreement with the audit finding. Action taken in response to finding: Property sponsor and manager reviewing and updating records currently. Name of the contact person responsible for corrective action: Angela Westwood, CFO Planned completion date for corrective action plan: Completion by 6/1/23
Upon performing testing over replacement reserve disbursements, we noted that one invoice was included in two different disbursement requests to HUD. Questioned costs: $1,436 Context: One of the invoice tested of $1,436 was included in two different disbursement requests to HUD. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over replacement reserve disbursement. Effect: Disbursements made out of the replacement reserve included an invoice of $1,436 that was already included in previous disbursement request and was reimbursed twice. Repeat Finding: No Recommendation: We recommend that management strengthen controls over review of replacement reserve disbursement requests. Views of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴2022 ? 004 Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Listing Number: 14.181 Award Period: 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: All disbursements from the reserve must be approved by HUD and made for the approved purpose (24 CFR section 891.405). Condition: Upon performing testing over replacement reserve disbursements, we noted that one invoice was included in two different disbursement requests to HUD. Questioned costs: $1,436 Context: One of the invoice tested of $1,436 was included in two different disbursement requests to HUD. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over replacement reserve disbursement. Effect: Disbursements made out of the replacement reserve included an invoice of $1,436 that was already included in previous disbursement request and was reimbursed twice. Repeat Finding: No Recommendation: We recommend that management strengthen controls over review of replacement reserve disbursement requests. Views of Responsible Officials: There is no disagreement with the audit finding.
Supportive Housing for Persons With Disabilities ? Assistance Listing No. 14.181 Criteria or Specific Requirement: All disbursements from the reserve must be approved by HUD and made for the approved purpose (24 CFR section 891.405). Condition: Upon performing testing over replacement reserve disbursements, we noted that one invoice was included in two different disbursement requests to HUD. Questioned costs: $1,436 Context: One of the invoice tested of $1,436 was included in two different disbursement requests to HUD. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over replacement reserve disbursement. Effect: Disbursements made out of the replacement reserve included an invoice of $1,436 that was already included in previous disbursement request and was reimbursed twice. Repeat Finding: No Recommendation: We recommend that management strengthen controls over review of replacement reserve disbursement requests. Views of Responsible Officials: There is no disagreement with the audit finding. Action taken in response to finding: Property management is increasing staff to properly comply with all regulations. Name of the contact person responsible for corrective action: Angela Westwood, CFO Planned completion date for corrective action plan: Immediate going forward.
Upon performing testing over payroll disbursements, we noted that there was no approval of the timesheet for one of the payroll disbursements tested. Questioned costs: None Context: The timesheet for 1 out of 5 payroll disbursements tested was not properly approved by the property manager. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over payroll disbursements. Effect: There is no evidence of proper approval of payroll disbursement. Repeat Finding: No Recommendation: We recommend that management strengthen controls over review of payroll. Views of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴2022 ? 005 Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Listing Number: 14.181 Award Period: 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: According to the client's internal control over payroll disbursements, hourly employees must maintain timesheets which are approved and signed by the property manager. Condition: Upon performing testing over payroll disbursements, we noted that there was no approval of the timesheet for one of the payroll disbursements tested. Questioned costs: None Context: The timesheet for 1 out of 5 payroll disbursements tested was not properly approved by the property manager. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over payroll disbursements. Effect: There is no evidence of proper approval of payroll disbursement. Repeat Finding: No Recommendation: We recommend that management strengthen controls over review of payroll. Views of Responsible Officials: There is no disagreement with the audit finding.
Supportive Housing for Persons With Disabilities ? Assistance Listing No. 14.181 Criteria or Specific Requirement: According to the client's internal control over payroll disbursements, hourly employees must maintain timesheets which are approved and signed by the property manager. Condition: Upon performing testing over payroll disbursements, we noted that there was no approval of the timesheet for one of the payroll disbursements tested. Questioned costs: None Context: The timesheet for 1 out of 5 payroll disbursements tested was not properly approved by the property manager. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over payroll disbursements. Effect: There is no evidence of proper approval of payroll disbursement. Repeat Finding: No Recommendation: We recommend that management strengthen controls over review of payroll. Views of Responsible Officials: There is no disagreement with the audit finding. Action taken in response to finding: Property manager is implementing review prior to payroll disbursement. Name of the contact person responsible for corrective action: Angela Westwood, CFO Planned completion date for corrective action plan: Already implemented as of 7/1/23
FAC accepted this audit on February 3, 2022 — management decision was due August 3, 2022.
Finding No. 2021-02: Tenant Accounts Eligibility Federal Program Information Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.181 Supportive Housing for Persons with Disabilities Criteria As per 24 CFR 891.410 Selection and Admission of Tenants, the owner must reexamine the income and composition of the household at least every 12 months. Upon verification of the information, the Owner must make appropriate adjustments in the total tenant payment in accordance with federal regulations and must determine whether the household unit size is still appropriate. Condition Upon performing testing over tenant rent and eligibility, we noted that annual recertifications were not completed timely. Cause Turnover of property manager at the property management company and weaknesses in internal controls over timely completion of tenant annual recertifications. Effect Untimely performance of required annual recertifications could affect the household?s eligibility for project rental assistance payments. Questioned Costs None. Context None of the tenant annual recertifications were done timely. Identification of a Repeat Finding In the prior year, a finding was reported for the lack of completion of annual recertifications for all tenants. Recommendation We recommend that all required annual recertifications be completed timely. Views of Responsible Officials New case management staff is more engaged in providing assistance with recertifications of the tenants and is working closely with management?s VP of Operations to ensure timely recertifications going forward.
Show full finding ▾Hide full finding ▴Finding No. 2021-02: Tenant Accounts Eligibility Federal Program Information Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.181 Supportive Housing for Persons with Disabilities Criteria As per 24 CFR 891.410 Selection and Admission of Tenants, the owner must reexamine the income and composition of the household at least every 12 months. Upon verification of the information, the Owner must make appropriate adjustments in the total tenant payment in accordance with federal regulations and must determine whether the household unit size is still appropriate. Condition Upon performing testing over tenant rent and eligibility, we noted that annual recertifications were not completed timely. Cause Turnover of property manager at the property management company and weaknesses in internal controls over timely completion of tenant annual recertifications. Effect Untimely performance of required annual recertifications could affect the household?s eligibility for project rental assistance payments. Questioned Costs None. Context None of the tenant annual recertifications were done timely. Identification of a Repeat Finding In the prior year, a finding was reported for the lack of completion of annual recertifications for all tenants. Recommendation We recommend that all required annual recertifications be completed timely. Views of Responsible Officials New case management staff is more engaged in providing assistance with recertifications of the tenants and is working closely with management?s VP of Operations to ensure timely recertifications going forward.
FINDINGS?FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2021-02 Supportive Housing for Persons With Disabilities ? Assistance Listing No. 14.181 Recommendation: We recommend that all required annual recertifications be completed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: New case management staff is more engaged in providing assistance with recertifications of the tenants and is working closely with management?s VP of Operations to ensure timely recertifications going forward. Name of the contact person responsible for corrective action: Angela Westwood, CFO Planned completion date for corrective action plan: June 2022. If the U.S. Department of Housing and Urban Development has questions regarding this schedule, please call Angela Westwood, CFO at (203) 562-2264 ext. 220.
2020-002
FAC accepted this audit on January 21, 2021 — management decision was due July 21, 2021.
Finding No. 2020-001: Tenant Accounts Receivable Criteria - Policies and procedures for accounts receivable including collections and delinquent accounts, should be established and maintained. The policies and procedures should be enforced and applied consistently. Additionally, proper maintenance of the billing records and cash application is imperative. Condition - Management did not enforce and consistently apply their accounts receivable policy. Efforts to try to collect outstanding tenant receivables were minimal. Additionally, billing records and cash application detail was not accurately maintained. Cause - Due to the pending change in control of the project, the property management company did not want to disrupt tenant status. Effect - collections of tenant receivables were minimal. The full amount of tenant receivables was reserved as of June 30, 2020. Recommendation - We recommend that management enforce and consistently apply their accounts receivable policy. Views of responsible officials - Housing stabilization was the focus of management during the fiscal year June 30, 2020. During this period there were ongoing negotiations to transfer the control of the HUD project to a new sponsor, Continuum of Care, Inc. and with HUD to ensure management will be able to provide the tenants with case management services to stabilize the project. Collection and evictions were further curtailed by the impact of COVID-19 limiting the amount of safe in-person interactions as well as with both Federal and Statewide moratoriums on evictions.
Show full finding ▾Hide full finding ▴Finding No. 2020-001: Tenant Accounts Receivable Criteria - Policies and procedures for accounts receivable including collections and delinquent accounts, should be established and maintained. The policies and procedures should be enforced and applied consistently. Additionally, proper maintenance of the billing records and cash application is imperative. Condition - Management did not enforce and consistently apply their accounts receivable policy. Efforts to try to collect outstanding tenant receivables were minimal. Additionally, billing records and cash application detail was not accurately maintained. Cause - Due to the pending change in control of the project, the property management company did not want to disrupt tenant status. Effect - collections of tenant receivables were minimal. The full amount of tenant receivables was reserved as of June 30, 2020. Recommendation - We recommend that management enforce and consistently apply their accounts receivable policy. Views of responsible officials - Housing stabilization was the focus of management during the fiscal year June 30, 2020. During this period there were ongoing negotiations to transfer the control of the HUD project to a new sponsor, Continuum of Care, Inc. and with HUD to ensure management will be able to provide the tenants with case management services to stabilize the project. Collection and evictions were further curtailed by the impact of COVID-19 limiting the amount of safe in-person interactions as well as with both Federal and Statewide moratoriums on evictions.
Financial Statement Findings: Finding No. 2020-001: Tenant Accounts Receivable Description of Finding: Management did not enforce and consistently apply their accounts receivable policy. E?orts to try to collect outstanding tenant receivables were minimal. Additionally, billing records and cash applica8on detail was not accurately maintained. Statement of Concurrence: Management concurs with the audit ?nding. Corrective Action: Housing stabilization was the focus of the management during ?scal year June 30, 2020. During this period there were ongoing negotiations to transfer the control of the HUD project to a new sponsor, Continuum of Care, Inc. and with HUD, to ensure management will be able to provide the tenants with case management services to stabilize the project. Collection and evictions were further curtailed by the impact of COVID-19 limiting the amount of safe in person interactions as well as both Federal and Statewide moratoriums on evictions. Name of Contact Person: Angela Rose Westwood, Chief Financial O?cer, (203) 562-2264 ext. 220, awestwood@continuumct.org Projected Completion Date: Clean up has already begun and will con8nue throughout the next year and based on existing COVID restrictions.
Finding No. 2020-002: Tenant Eligibility, Federal Program Information, Agency: US Department of Housing and Urban Development, CFDA Number: 14.181 Supportive Housing for Persons with Disabilities. Criteria - As per 24 CFR Section 891.410 - Selection and Admission of Tenants, the owner must reexamine the income and composition of the household at least every 12 months. Upon verification of the information, the Owner must make appropriate adjustments in the total tenant payment in accordance with federal regulations and must determine whether the household's unit size is still appropriate. Condition - Upon performing testing over tenant rent and eligibility, we noted that annual re certifications were not completed timely. Cause - Turnover of the property manager at the property management company and weaknesses in internal controls over timely completion of tenant annual re certifications. Effect - Untimely performance of required annual re certifications could affect the household's eligibility for project rental assistance payments. Questioned costs - none. Context - None of the tenant annual re certifications were done timely. Identification of repeat finding - In the prior year, a finding was reported for lack of completion of annual re certifications for all tenants. Recommendation - we recommend that all required annual re certifications be completed timely. Views of responsible officials - The new sponsor has taken an active role in meeting with the property manager and providing consistent case management services to the tenants. The ability to add case management services will assist in the timely re certifications of the tenants.
Show full finding ▾Hide full finding ▴Finding No. 2020-002: Tenant Eligibility, Federal Program Information, Agency: US Department of Housing and Urban Development, CFDA Number: 14.181 Supportive Housing for Persons with Disabilities. Criteria - As per 24 CFR Section 891.410 - Selection and Admission of Tenants, the owner must reexamine the income and composition of the household at least every 12 months. Upon verification of the information, the Owner must make appropriate adjustments in the total tenant payment in accordance with federal regulations and must determine whether the household's unit size is still appropriate. Condition - Upon performing testing over tenant rent and eligibility, we noted that annual re certifications were not completed timely. Cause - Turnover of the property manager at the property management company and weaknesses in internal controls over timely completion of tenant annual re certifications. Effect - Untimely performance of required annual re certifications could affect the household's eligibility for project rental assistance payments. Questioned costs - none. Context - None of the tenant annual re certifications were done timely. Identification of repeat finding - In the prior year, a finding was reported for lack of completion of annual re certifications for all tenants. Recommendation - we recommend that all required annual re certifications be completed timely. Views of responsible officials - The new sponsor has taken an active role in meeting with the property manager and providing consistent case management services to the tenants. The ability to add case management services will assist in the timely re certifications of the tenants.
Finding No. 2020-002: Tenant Eligibility Federal Program Information: Agency: U.S. Department of Housing and Urban Development CFDA Number: 14.181 Supportive Housing for Persons with Disabilities Description of Finding: Upon performing tests over tenant rent and eligibility, we noted that annual recerti?cations were not completed timely. Statement of Concurrence: Management concurs with the audit ?nding. Corrective Action: The new sponsor has taken an active role in meeting with the property manager and providing consistent case management services to the tenants. The ability to add case management services will assist in the timely recerti?cations of the tenants. Name of Contact Person: Angela Rose Westwood, Chief Financial O?cer, (203) 562-2264 ext. 220, awestwood@continuumct.org Projected Completion Date: Testing will be up to date in the ?rst quarter of 2021.
2019-001
Finding No. 2020-003: Replacement reserve, Federal Program Information, Agency: US Department of Housing and Urban Development, CFDA Number: 14.181 Supportive Housing for persons with disabilities. Criteria - As per 24 CFR Section 891.405 - Replacement reserve, the owner shall make monthly deposits to the replacement reserve in an amount determined by HUD. Condition - Deposits were not made into the replacement reserve for any months during fiscal year 2020. A deposit equal to the total of the 12 months required deposits was made into the replacement reserve account in July 2020. Cause - Delay in receipt of HUD rental assistance throughout the year, which caused cash flow shortages and the inability to make the required monthly deposits to the replacement reserve. Effect - The reserve was not built up and maintained at the level determined by HUD. Questioned costs - None. Context - No deposits were made into the replacement reserve during the fiscal year 2020. Recommendation - We recommend that all required monthly deposits be made into the replacement reserve. If cash flow issues are encountered, the property management company should communicate with the owner and request financial assistance in order to be able to fund the reserve monthly. Views of responsible officials - This HUD project has struggled for many years with cash flow issues. The former sponsor had contributed more than $700.000 to the project at the time of acquisition by the new sponsor. The new sponsor, Continuum of Care, Inc., acquired the project in June 2020, and will be operating the project going forward. Continuum of Care, Inc. has secured funds to pay for rental loss due to vacancy for program clients and will manage closely the current vacancies to ensure cash is available to fund the reserve.
Show full finding ▾Hide full finding ▴Finding No. 2020-003: Replacement reserve, Federal Program Information, Agency: US Department of Housing and Urban Development, CFDA Number: 14.181 Supportive Housing for persons with disabilities. Criteria - As per 24 CFR Section 891.405 - Replacement reserve, the owner shall make monthly deposits to the replacement reserve in an amount determined by HUD. Condition - Deposits were not made into the replacement reserve for any months during fiscal year 2020. A deposit equal to the total of the 12 months required deposits was made into the replacement reserve account in July 2020. Cause - Delay in receipt of HUD rental assistance throughout the year, which caused cash flow shortages and the inability to make the required monthly deposits to the replacement reserve. Effect - The reserve was not built up and maintained at the level determined by HUD. Questioned costs - None. Context - No deposits were made into the replacement reserve during the fiscal year 2020. Recommendation - We recommend that all required monthly deposits be made into the replacement reserve. If cash flow issues are encountered, the property management company should communicate with the owner and request financial assistance in order to be able to fund the reserve monthly. Views of responsible officials - This HUD project has struggled for many years with cash flow issues. The former sponsor had contributed more than $700.000 to the project at the time of acquisition by the new sponsor. The new sponsor, Continuum of Care, Inc., acquired the project in June 2020, and will be operating the project going forward. Continuum of Care, Inc. has secured funds to pay for rental loss due to vacancy for program clients and will manage closely the current vacancies to ensure cash is available to fund the reserve.
Finding No. 2020-003: Replacement Reserve Federal Program Information: Agency: U.S. Department of Housing and Urban Development CFDA Number: 14.181 Supportive Housing for Persons with Disabilities Description of Finding: Deposits were not made into the replacement reserve for any months during ?scal year 2020. A deposit equal to the total of the 12 months required deposits was made into the replacement reserve account in July 2020. Statement of Concurrence: Management concurs with the audit ?nding. Corrective Action: This HUD project has struggled for many years with cash ?ow issues. The former sponsor had contributed more than $700,000 to the project at the time of acquisition by a new sponsor. The new sponsor, Continuum of Care, Inc. acquired the project in June 2020, and will be operating the project going forward. Continuum of Care Inc. has secured funds to pay for rental loss due to vacancy for program clients and will manage closely the current vacancies to ensure cash is available to fund the reserve. Name of Contact Person: Angela Rose Westwood, Chief Financial O?cer, (203) 562-2264 ext. 220, awestwood@continuumct.org Projected Completion Date: Speci?c instance was corrected by the auditor at Year end. Cash will be recorded when deposited going forward.
FAC accepted this audit on September 29, 2019 — management decision was due March 29, 2020.
Finding No. 2019-01: Tenant Eligibility Federal Program Information Agency: U.S. Department of Housing and Urban Development CFDA Number: 14.181 Supportive Housing for Persons with Disabilities Criteria As per 24 CFR Section 891.410 - Selection and Admission of Tenants, the Owner must reexamine the income and composition of the household at least every 12 months. Upon verification of the information, the Owner must make appropriate adjustments in the total tenant payment in accordance with federal regulations and must determine whether the household?s unit size is still appropriate. Condition Upon performing testing over tenant eligibility, we noted that the annual recertifications were not completed for any tenants. Questioned Costs None. Context The audit finding represents a miscommunication within the management company caused by turnover. Effect Failure to perform required tenant reexaminations could result in termination of a household?s eligibility for project rental assistance payment. Cause Turnover within the property management company caused a miscommunication. Recommendation We recommend that annual recertifications be done for all tenants. View of Responsible Officials and Planned Corrective Action We will perform annual recertifications in the future for all tenants.
Show full finding ▾Hide full finding ▴Finding No. 2019-01: Tenant Eligibility Federal Program Information Agency: U.S. Department of Housing and Urban Development CFDA Number: 14.181 Supportive Housing for Persons with Disabilities Criteria As per 24 CFR Section 891.410 - Selection and Admission of Tenants, the Owner must reexamine the income and composition of the household at least every 12 months. Upon verification of the information, the Owner must make appropriate adjustments in the total tenant payment in accordance with federal regulations and must determine whether the household?s unit size is still appropriate. Condition Upon performing testing over tenant eligibility, we noted that the annual recertifications were not completed for any tenants. Questioned Costs None. Context The audit finding represents a miscommunication within the management company caused by turnover. Effect Failure to perform required tenant reexaminations could result in termination of a household?s eligibility for project rental assistance payment. Cause Turnover within the property management company caused a miscommunication. Recommendation We recommend that annual recertifications be done for all tenants. View of Responsible Officials and Planned Corrective Action We will perform annual recertifications in the future for all tenants.
September 27, 2019 RE: FY2019 Audit Findings To Whom it May Concern: The Connecticut Institute for the Blind respectively submits the following corrective action plan required for the June 30, 2019 Federal Audit of HUD Project No. 017-HDO 16, West Hartford. Name and address of independent public accounting firm: Guilmartin, DiPiro & Sokolowski, LLC 505 Main Street Middletown, CT 06457 Audit period: June 30, 2019 The finding from the June 30, 2019 schedule of findings and questioned costs is discussed below. Finding No. 2019-01 Description of finding Upon performing testing over tenant eligibility, it was noted that the annual recertifications were not completed. Corrective Action Taken The Project is managed by a third-party company. Management has instructed the Property Management company to complete all rece1tifications in the proper time frame. If you require any additional information or have any questions, please contact Christine Leiby at (860) 769-3839 or Christine.Leiby@oakh iIlet.org. Sincerely, . Christine D. Leiby Director of Finance
2018-001
FAC accepted this audit on December 26, 2018 — management decision was due June 26, 2019.
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