EIN: 363301763
UEI: NGT3XP62NSY3
Data as of August 27, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 19, 2022. 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 April 19, 2023 (1226 days ago).
What is a management decision? →As a result of our audit, we proposed forty-one (41) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments proposed were material to the financial statements. Adjustments were necessary in basis areas such as cash operating, accounts receivable, prepaid expense, prepaid mortgage insurance, tenant security deposits, residual receipts, accumulated depreciation, deferring financing cost, accrued expenses, accrued wages payable, accrued payroll taxes, accrued interest payable, current portion of mortgage payable, mortgage payable, debt issuance cost, accumulated amortization and net deficiency, revenue, and expenses.
Show full finding ▾Hide full finding ▴As a result of our audit, we proposed forty-one (41) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments proposed were material to the financial statements. Adjustments were necessary in basis areas such as cash operating, accounts receivable, prepaid expense, prepaid mortgage insurance, tenant security deposits, residual receipts, accumulated depreciation, deferring financing cost, accrued expenses, accrued wages payable, accrued payroll taxes, accrued interest payable, current portion of mortgage payable, mortgage payable, debt issuance cost, accumulated amortization and net deficiency, revenue, and expenses.
2021-001: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195- Reporting Contract Period-Year Ended October 31, 2021-Significant Number of Audit Adjustments Corrective Action Plan: This condition was largely created by a difficult on-boarding process with the change in management agents and the less than enthusiastic effort at being helpful by the previous management agent. Having said that, we will implement the reconciliation that all subsidiary schedules and/or supporting schedules will be reconciled to the general ledger on a monthly basis. The Director of Administration will review the reconciliation for accuracy and document evidence of the review. Responsible party: Sophia Porter, Director of Administration Planned completion date for corrective action plan: Beginning with the successful transition of accounting information to the new software system, OneSite, and then on-going.
During our testing of Residual Receipts, we noted the Residual Receipts Reserve account for $18,927.25 was materiality understated due to the account was unrecorded on the Project?s books and records as of October 31, 2021.
Show full finding ▾Hide full finding ▴During our testing of Residual Receipts, we noted the Residual Receipts Reserve account for $18,927.25 was materiality understated due to the account was unrecorded on the Project?s books and records as of October 31, 2021.
2021-002: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195 Special Testing and Provisions; Contract Period-Year Ended October 31, 2021-Residual Receipts Reserve Unrecorded Corrective Action Plan: We will establish monthly reconciliations of all cash and estimated cash restricted accounts. The Director of Administration will review the bank reconciliations for completeness and accuracy, and that reconciled items clear in a timely manner. Responsible party: Sophia Porter, Director of Administration Planned completion date for corrective action plan: Beginning with the successful transition of accounting information to the new software system, OneSite, and then on-going.
During audit procedures of Tenant Security Deposit, we noted that the Tenant Security Deposit account for $22,777.17 was materiality overstated by $10,337.04
Show full finding ▾Hide full finding ▴During audit procedures of Tenant Security Deposit, we noted that the Tenant Security Deposit account for $22,777.17 was materiality overstated by $10,337.04
2021-003: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195 Special Testing and Provisions; Contract Period-Year Ended October 31, 2021-Tenant Security Deposit Account Overstated Corrective Action Plan: This condition was largely created by a difficult on-boarding process with the change in management agents and the less than enthusiastic effort at being helpful by the previous management agent. Having said that, we will implement the reconciliation that all subsidiary schedules and/or supporting schedules will be reconciled to the general ledger on a monthly basis. The Director of Administration will review the reconciliation for accuracy and document evidence of the review. We will establish monthly reconciliations of all cash and estimated cash restricted accounts. The Director of Administration will review the bank reconciliations for completeness and accuracy, and that reconciled items clear in a timely manner. Responsible party: Sophia Porter, Director of Administration Planned completion date for corrective action plan: Beginning with the successful transition of accounting information to the new software system, OneSite, and then on-going.
During our testing of Cash Operating, we noted the Current Management Agent did not record beginning balance of cash operating account for the amount of $42,861.02 and November 1, 2021 through March 31, 2022 bank activity that was being held by the Prior Management Agent-HSR Property Services, LLC causing cash deposits of $150,636.02 and cash disbursements of $150,635.49, respectively to be improperly unrecorded and/or misclassify.
Show full finding ▾Hide full finding ▴During our testing of Cash Operating, we noted the Current Management Agent did not record beginning balance of cash operating account for the amount of $42,861.02 and November 1, 2021 through March 31, 2022 bank activity that was being held by the Prior Management Agent-HSR Property Services, LLC causing cash deposits of $150,636.02 and cash disbursements of $150,635.49, respectively to be improperly unrecorded and/or misclassify.
2021-004: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195 Reporting; Contract Period-Year Ended October 31, 2021-Unrecorded Operating Cash Transactions Corrective Action Plan: This condition was largely created by a difficult on-boarding process with the change in management agents and the less than enthusiastic effort at being helpful by the previous management agent. Having said that, we will implement the reconciliation that all subsidiary schedules and/or supporting schedules will be reconciled to the general ledger on a monthly basis. The Director of Administration will review the reconciliation for accuracy and document evidence of the review. We will establish monthly reconciliations of all cash and estimated cash restricted accounts. The Director of Administration will review the bank reconciliations for completeness and accuracy, and that reconciled items clear in a timely manner. Responsible party: Sophia Porter, Director of Administration Planned completion date for corrective action plan: Beginning with the successful transition of accounting information to the new software system, OneSite, and then on-going.
During our testing of mortgage, noted that the audited mortgage balance $4,221,035.49 was overstated by $96,179.69 on the Project?s books and records.
Show full finding ▾Hide full finding ▴During our testing of mortgage, noted that the audited mortgage balance $4,221,035.49 was overstated by $96,179.69 on the Project?s books and records.
2021-005: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195 Cash Management; Contract Period-Year Ended October 31, 2021-Mortgage Balance Overstated. Corrective Action Plan: he Director of Administration will ensure that the monthly mortgage balance on the books matches the lender?s record. Responsible party: Sophia Porter, Director of Administration Planned completion date for corrective action plan: Immediately and on-going
During our testing of cash disbursements, we noted the following: 1. No approval or account and account description noted on vendor?s invoices. Seventy (70) exceptions noted. 2. Stamp paid and check number not posted on vendors? invoices to prevent resubmission. Ninety (90) exceptions noted. 3. Vendors? invoices were not recorded in the correct accounting period. Thirty (30) exceptions noted. 4. Vendors? invoices were not charged to the appropriate cost category. Three (3) exceptions noted 5. Prior year vendor?s invoice recorded on 1/31/2021. Four (4) exceptions noted. 6. Vendor?s invoice paid twice. One (1) exception noted. 7. Vendor?s invoices were available for examination purposes. Three (3) exceptions noted.
Show full finding ▾Hide full finding ▴During our testing of cash disbursements, we noted the following: 1. No approval or account and account description noted on vendor?s invoices. Seventy (70) exceptions noted. 2. Stamp paid and check number not posted on vendors? invoices to prevent resubmission. Ninety (90) exceptions noted. 3. Vendors? invoices were not recorded in the correct accounting period. Thirty (30) exceptions noted. 4. Vendors? invoices were not charged to the appropriate cost category. Three (3) exceptions noted 5. Prior year vendor?s invoice recorded on 1/31/2021. Four (4) exceptions noted. 6. Vendor?s invoice paid twice. One (1) exception noted. 7. Vendor?s invoices were available for examination purposes. Three (3) exceptions noted.
2021-006: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Project CFDA 14.155 Allowable Cost/Cost Principles-Contract Period Ended October 31, 2021 ? Internal Controls Over Cash Disbursements Corrective Action Plan: We will follow HUD?s Disbursement Control procedures. We will conduct a training session with accounting staff on these procedures, and in particular how they can be achieved in a digital environment. Responsible party: Sophia Porter, Director of Administration Planned completion date for corrective action plan: By the end of September following the software conversion.
During our testing of Move-out, we noted that forfeited of security deposits applied to rents and damages were not appropriately recorded as rental income:
Show full finding ▾Hide full finding ▴During our testing of Move-out, we noted that forfeited of security deposits applied to rents and damages were not appropriately recorded as rental income:
2021-007: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Project CFDA 14.155 and Section 8 Housing Assistance Payments CFDA 14.195 Eligibility -Contract Period Ended October 31, 2021 ? Forfeited Tenant Security Deposits Corrective Action Plan: We will review the records for these tenants and in those instances where there are forfeited security deposits, we will transfer those amounts to the Cash Operating Account and record them as Rental Income. We will also establish a procedure whereby the Director of Administration will review that such funds are being transferred and recorded in a timely manner. Responsible party: Sophia Porter, Director of Administration Planned completion date for corrective action plan: By the end of September following the software conversion and then on-goi
uring our testing of Move-out, disbursing of the tenant security deposit refunds from the Cash Operating as opposed to the Tenant Security Deposit Account.
Show full finding ▾Hide full finding ▴uring our testing of Move-out, disbursing of the tenant security deposit refunds from the Cash Operating as opposed to the Tenant Security Deposit Account.
2021-008: Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Project CFDA 14.155 and Section 8 Housing Assistance Payments CFDA 14.195 Eligibility -Contract Period Ended October 31, 2021 ? Tenant Security Deposit Refunds Corrective Action Plan: We will disburse refunds of security deposits from the Tenant Security Deposit Account rather than the project operating account going forward. Responsible party: Loreal Johnson-Thomas, Regional Manager of Senior Properties Planned completion date for corrective action plan: Immediately, going forward
FAC accepted this audit on July 25, 2021 — management decision was due January 25, 2022.
Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195- Eligibility; Contract Period-Year Ended October 31, 2020
Show full finding ▾Hide full finding ▴Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195- Eligibility; Contract Period-Year Ended October 31, 2020
Once the transition of New Management Agent has taken place on November 1, 2020, it was found that the Gross Rent change was not completed by the Prior Management Agent. Therefore, the Regional Manager of the New Management Agent completed and amended the Gross Rent change effective September 18, 2020 to April 2021. The following has been performed and completed during the month of April 2021: a. Revised Form HUD-5059 Owner?s Certification of Compliance with HUD?s Tenant Eligibility and Rent Procedures for all certifications and recertification for the period October 1, 2020 through April 30, 2021. b. Revised lease agreement for the period October 1, 2020 through April 30, 2021. c. HAP billing adjustment for the period October 1, 2020 through April 30, 2021.
Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195 Special Testing and Provisions; Contract Period-Year Ended October 31, 2020
Show full finding ▾Hide full finding ▴Section 223(f)/207 Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects-CFDA 14.155 & Section 8 Housing Assistance Payments-CFDA 14.195 Special Testing and Provisions; Contract Period-Year Ended October 31, 2020
For the Project next Replacement Reserve request which will be during July 2021, we will request that $9,174.64 be deducted from the fund request amount to cover the overpayment.
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