EIN: 431847771
UEI: EA1XMA962K69
Audited by: CohnReznick LLP
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 26, 2025. 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 December 26, 2025 (252 days ago).
What is a management decision? →Finding No. 2024-001; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria - CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection from and the reporting package. Condition - The audited financial statements for the Corporation were not filed electronically to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the reports are received from the auditors or nine months after the year ended December 31, 2023. Cause - Management does not have controls in place to timely file its financial statements. Effect of Potential Effect - Management is not in compliance with the requirement to submit the annual financial statements to the Federal Audit Clearinghouse. Questioned Costs - Not applicable Identification as a Repeat Finding - Finding No. 2023-001 Recommendation - Management should institute procedures to ensure that the financial statements are electronically filed with the Federal Audit Clearinghouse within the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Finding Resolution Status - Management has electronically filed the audited financial statements to the Federal Audit Clearinghouse on April 27, 2024. Views of Responsible Officials - Management has electronically filed the audited financial statements to the Federal Audit Clearinghouse on April 27, 2024.
Show full finding ▾Hide full finding ▴Finding No. 2024-001; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria - CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection from and the reporting package. Condition - The audited financial statements for the Corporation were not filed electronically to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the reports are received from the auditors or nine months after the year ended December 31, 2023. Cause - Management does not have controls in place to timely file its financial statements. Effect of Potential Effect - Management is not in compliance with the requirement to submit the annual financial statements to the Federal Audit Clearinghouse. Questioned Costs - Not applicable Identification as a Repeat Finding - Finding No. 2023-001 Recommendation - Management should institute procedures to ensure that the financial statements are electronically filed with the Federal Audit Clearinghouse within the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Finding Resolution Status - Management has electronically filed the audited financial statements to the Federal Audit Clearinghouse on April 27, 2024. Views of Responsible Officials - Management has electronically filed the audited financial statements to the Federal Audit Clearinghouse on April 27, 2024.
Management has electronically filed the audited financial statements to the Federal Audit Clearinghouse on April 27, 2024.
2023-001
Finding No. 2024-002; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria - Residual receipts reserve deposits should be made within 90 days of year end. Condition - During the year ended December 31, 2024, management did not make the required residual receipts reserve deposit in the amount of $26,017 within 90 days of year end, as required by HUD. The residual receipts amount was deposited on April 1, 2024. Cause - Controls are not in place to ensure that required residual reserve deposits are made timely. Effect of Potential Effect - The Corporation is not in compliance with the requirements of the Regulatory Agreement. Questioned Costs - $26,017 Identification as a Repeat Finding - Not applicable Recommendation - Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Finding Resolution Status - Management has made the required residual receipts deposit based upon December 31, 2023, surplus cash in the amount of $26,017 on April 1, 2024. Views of Responsible Officials - Management has made the required residual receipts deposit based upon December 31, 2023, surplus cash in the amount of $26,017 on April 1, 2024.
Show full finding ▾Hide full finding ▴Finding No. 2024-002; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria - Residual receipts reserve deposits should be made within 90 days of year end. Condition - During the year ended December 31, 2024, management did not make the required residual receipts reserve deposit in the amount of $26,017 within 90 days of year end, as required by HUD. The residual receipts amount was deposited on April 1, 2024. Cause - Controls are not in place to ensure that required residual reserve deposits are made timely. Effect of Potential Effect - The Corporation is not in compliance with the requirements of the Regulatory Agreement. Questioned Costs - $26,017 Identification as a Repeat Finding - Not applicable Recommendation - Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Finding Resolution Status - Management has made the required residual receipts deposit based upon December 31, 2023, surplus cash in the amount of $26,017 on April 1, 2024. Views of Responsible Officials - Management has made the required residual receipts deposit based upon December 31, 2023, surplus cash in the amount of $26,017 on April 1, 2024.
Management has made the required residual receipts deposit based upon December 31, 2023, surplus cash in the amount of $26,017 on April 1, 2024.
Finding No. 2024-003; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria - Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4530.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition - During the procedures applied to a sample of seven tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files. Three out of seven tenants tested did not have EIVs ran timely. Cause - The project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines. Effect of Potential Effect - Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs - Not applicable Identification as a Repeat Finding - Not applicable Recommendation - Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Finding Resolution Status - Not started or in process Views of Responsible Officials - See PDF pages 44 through 46.
Show full finding ▾Hide full finding ▴Finding No. 2024-003; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria - Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4530.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition - During the procedures applied to a sample of seven tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files. Three out of seven tenants tested did not have EIVs ran timely. Cause - The project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines. Effect of Potential Effect - Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs - Not applicable Identification as a Repeat Finding - Not applicable Recommendation - Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Finding Resolution Status - Not started or in process Views of Responsible Officials - See PDF pages 44 through 46.
EIV Policy: It is our policy that monthly our property manager is responsible for running all required EIV reports for the property. EIV reports are to be filed and secured in the resident file in a locked filing cabinet. A summary of our policy on EIV reporting is as follows: EIV Reporting at Move-in/Initial, Annual Certification, Interim Certification: EIV income reports will be reviewed for each resident household as part of the certification process. The reports reviewed during certification include: The Income Report (Income Summary and Income Detail) The Income Discrepancy Report (for AR and IR only) The No Income from HHS or SSA Report (as appropriate) The No Income on 50059 Report (as appropriate) The reports will be produced as part of the following certification processes: Annual Certification - No more than 120 days before the effective date of an annual certification Initial Certification – if available, the manager will review income information provided by EIV when preparing the household’s certification Interim Certification - the manager will review information provided by EIV when preparing the household’s certification as required by HUD Post Move-in - the manager will review income information within 90 days of submission of any move-in certification in order to quickly identify any potential discrepancies that may affect the household’s assistance payments. No 50059 data found in TRACS: If EIV generates an error “No 50059 data found in TRACS”, the manager will access the TRACS certification query to make sure the most recent 50059 has been received. If the 50059 is missing, the manager will re-submit the 50059 through HUD as appropriate. If the 50059 has been recorded in TRACS, the manager will print the report with the appropriate message and note that information is not available in EIV. Traditional verification methods discussed in HUD Handbook 4350.3 Revision 1 will be used to verify information included on the 50059. The manager will not “go back” to review information. Income reports and the Income Discrepancy Report will be reviewed at the next certification. Monitoring EIV Reporting: Management has implemented a policy to ensure EIV reports are being generated and maintained. In addition to the property manager running EIV reports, management has designated corporate staff assigned to also run EIV reports. These staff members are: Administrative Compliance Manager Regional Manager Portfolio Manager These persons have EIV access to properties and will serve as a back up to run EIV reports as necessary throughout the month. The Administrative Compliance Manager is responsible for running the EIV monthly master files for all properties. This staff member is also responsible for reminding all property managers to run the 90-Day EIV reports. Lastly, they do a monthly EIV telephone blast to all staff to remind them to run the EIV reports as required. The property management software that we currently use has an alert system that will provide an alert when a move is at the 90-day mark. We have made it a requirement for all staff to have this alert on their home dashboard when they login to the system. This alert is under “EIV” category in the alerts so staff in aware it is an EIV specific action item. Management is also implementing a quarterly audit report. On a quarterly basis the Regional/Portfolio Manager assigned to the property will conduct a quarterly audit of the property. As part of this audit, the EIV policy and the reporting will be reviewed. Managers are required to participate in annual EIV training as well. We have a Learning Management System, and this is one of the annual training courses required for a property manager. In this case, the property manager who failed to run the required reports is no longer an employee and has been replaced. Management will continue to monitor this process in the future to ensure compliance with the HUD requirements.
FAC accepted this audit on April 27, 2024 — management decision was due October 27, 2024.
Finding No. 2023-001; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection from and the reporting package. Condition The audited financial statements for the Corporation were not filed electronically to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the reports are received from the auditors or none months after the year ended December 31, 2022. Cause Management does not have controls in place to timely file its financial statements. Effect or Potential Effect Management is not in compliance with the requirement to submit the annual financial statements to the Federal Audit Clearinghouse. Questioned Costs Not applicable Identification as a Repeat Finding Not applicable Recommendation Management should institute procedures to ensure that the financial statements are electronically filed with the Federal Audit Clearinghouse within the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Auditor Noncompliance Code: Z - Other Finding Resolution Status: Management has electronically filed the audited financial statements to the Federal Audit Clearinghouse on June 30, 2023. Views of Responsible Officials Management has electronically filed the audited financial statements to the Federal Audit Clearinghouse on June 30, 2023.
Show full finding ▾Hide full finding ▴Finding No. 2023-001; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection from and the reporting package. Condition The audited financial statements for the Corporation were not filed electronically to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the reports are received from the auditors or none months after the year ended December 31, 2022. Cause Management does not have controls in place to timely file its financial statements. Effect or Potential Effect Management is not in compliance with the requirement to submit the annual financial statements to the Federal Audit Clearinghouse. Questioned Costs Not applicable Identification as a Repeat Finding Not applicable Recommendation Management should institute procedures to ensure that the financial statements are electronically filed with the Federal Audit Clearinghouse within the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Auditor Noncompliance Code: Z - Other Finding Resolution Status: Management has electronically filed the audited financial statements to the Federal Audit Clearinghouse on June 30, 2023. Views of Responsible Officials Management has electronically filed the audited financial statements to the Federal Audit Clearinghouse on June 30, 2023.
Management electronically filed the audited financial statements to the Federal Audit Clearinghouse on June 30, 2023. Going forward, we will utilize calendar reminders to ensure that we log in to the Clearinghouse and complete the requisite steps in a timely manner.
FAC accepted this audit on June 29, 2023 — management decision was due December 29, 2023.
Finding No. 2022-001; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria Residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended December 31, 2022, management did not make the required residual receipts reserve deposit in the amount of $12,564 within 90 days of year end, as required by HUD. The residual receipts amount was deposited on June 30, 2022. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Corporation is not in compliance with the requirements of the Regulatory Agreement. Questioned Costs $12,564 Identification as a Repeat Finding Finding No. 2021-001 Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits Finding Resolution Status: Resolved Views of Responsible Officials Management has made the required residual receipts deposit based upon December 31, 2021, surplus cash in the amount of $12,564 on June 30, 2022.
Show full finding ▾Hide full finding ▴Finding No. 2022-001; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria Residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended December 31, 2022, management did not make the required residual receipts reserve deposit in the amount of $12,564 within 90 days of year end, as required by HUD. The residual receipts amount was deposited on June 30, 2022. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Corporation is not in compliance with the requirements of the Regulatory Agreement. Questioned Costs $12,564 Identification as a Repeat Finding Finding No. 2021-001 Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits Finding Resolution Status: Resolved Views of Responsible Officials Management has made the required residual receipts deposit based upon December 31, 2021, surplus cash in the amount of $12,564 on June 30, 2022.
A. Finding 2022-001 a. Comments on Findings and Recommendations 2022-001: Management has made the required residual receipts deposit based upon December 31, 2021, surplus cash in the amount of $12,564 on June 30, 2022.
2021-001
Finding No. 2022-002; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition During the procedures applied to a sample of 7 tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files. 1 out of 7 tenants tested did not have documentation in their lease file that their income was verified. Cause The project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs - None Identification as a Repeat Finding - None Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Auditor Noncompliance Code: R - Section 8 program administration Finding Resolution Status: Not Started or In Process Views of Responsible Officials All tenant income is verified at initial move in and at each annual and interim certification. The instance of noncompliance pertained to a tenant that only had social security income for her March 1, 2022 Annual Recertification, meaning that her verification would have been through the HUD EIV system and would not have been transmitted electronically to the auditors. Management believes the report was properly run. Additionally, our policies include running EIV master file reports on a monthly basis which would have alerted management to the presence of a new job or unreported income in the household had there been any.
Show full finding ▾Hide full finding ▴Finding No. 2022-002; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition During the procedures applied to a sample of 7 tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files. 1 out of 7 tenants tested did not have documentation in their lease file that their income was verified. Cause The project failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs - None Identification as a Repeat Finding - None Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Auditor Noncompliance Code: R - Section 8 program administration Finding Resolution Status: Not Started or In Process Views of Responsible Officials All tenant income is verified at initial move in and at each annual and interim certification. The instance of noncompliance pertained to a tenant that only had social security income for her March 1, 2022 Annual Recertification, meaning that her verification would have been through the HUD EIV system and would not have been transmitted electronically to the auditors. Management believes the report was properly run. Additionally, our policies include running EIV master file reports on a monthly basis which would have alerted management to the presence of a new job or unreported income in the household had there been any.
B. Finding 2022-002 a. Comments on Findings and Recommendations 2022-002: All tenant income is verified at initial move in and at each annual and interim certification. The instance of non-compliance pertained to a tenant that only had social security income for her March 1, 2022, Annual Recertification, meaning that her verification would have been through the HUD EIV system and would not have been transmitted electronically to the auditors. Management believes the report was properly run. Additionally, our policies include running EIV master file reports on a monthly basis which would have alerted management to the presence of a new job or unreported income in the household had there been any.
FAC accepted this audit on March 16, 2023 — management decision was due September 16, 2023.
Finding No. 2021-001; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria Residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended December 31, 2021, management did not make the required residual receipts reserve deposit in the amount of $4,455 within 90 days of year end, as required by HUD. The residual receipts amount was deposited on June 25, 2021. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Corporation is not in compliance with the requirements of the Regulatory Agreement. Questioned Costs $4,455 Identification as a Repeat Finding Finding No. 2020-001 Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits Finding Resolution Status: Resolved Views of Responsible Officials Management has made the required residual receipts deposit based upon December 31, 2020, surplus cash in the amount of $4,455 on June 25, 2021.
Show full finding ▾Hide full finding ▴Finding No. 2021-001; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria Residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended December 31, 2021, management did not make the required residual receipts reserve deposit in the amount of $4,455 within 90 days of year end, as required by HUD. The residual receipts amount was deposited on June 25, 2021. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Corporation is not in compliance with the requirements of the Regulatory Agreement. Questioned Costs $4,455 Identification as a Repeat Finding Finding No. 2020-001 Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits Finding Resolution Status: Resolved Views of Responsible Officials Management has made the required residual receipts deposit based upon December 31, 2020, surplus cash in the amount of $4,455 on June 25, 2021.
ST. PATRICK APARTMENTS II, INC. 11810 Grand Park Avenue, Suite 600 North Bethesda, MD 20852 CORRECTIVE ACTION PLAN Project Legal Name: St. Patrick Apartments II, Inc. HUD Project Number: 085-EE042 Audit Firm: CohnReznick, LLP Period covered by this audit: Year ended December 31, 2021 Person responsible: Bobby Custer, Director of Asset Management, Foundation Housing Bobby@foundationhousing.com Current Findings on the Schedule of Findings, Questioned Costs and Recommendations A. Finding 2021-001 a. Comments on Findings and Recommendations 2021-001: We agree with the auditor that the project did not make the required residual receipts reserve deposit in the amount of $4,455 within 90 days of year end, as required by HUD. b. Actions Taken or Planned on the Finding 2021-001: The required residual receipts reserve deposit based upon December 31, 2020, in the amount of $4,455 was made on June 25, 2021 (within 90 days of the issuance of the annual audited financial statement). B. Finding 2021-002 a. Comments on Findings and Recommendations 2021-002: We agree with the auditor that the project did not make the required monthly deposits to the replacement reserve in the amount of $7,365 during August 2021. b. Actions Taken or Planned on the Finding 2021-002: The required August replacement reserve deposit in the amount of $7,365 was made on March 25, 2022. Status of Corrective Actions on Findings Reported in the Schedule of the Status of Prior Year Findings, Questioned Costs and Recommendations A. Finding 2020-001 a. Comments on Findings and Recommendations No further commentary considered necessary as management made the required residual receipt deposit based upon December 31, 2019, surplus cash in the amount of $85,889 on December 17, 2020.
2020-001
Finding No. 2021-002; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria The terms of the PRAC contract require that the project make monthly deposits to its replacement reserve. Condition During the year ended December 31, 2021, the project did not make the required monthly deposits to the replacement reserve in the amount of $7,365 during August 2021. The project is required to make monthly deposits to the reserve in the amount of $7,365. Cause Controls are not in place to ensure that required replacement reserve deposits are made timely. Effect or Potential Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the Regulatory Agreement. Questioned Costs $7,365 Identification as a Repeat Finding - None Recommendation Management should establish internal controls and procedures to ensure that required replacement reserve deposits are made timely. Auditor Noncompliance Code: N - Reserve for replacement deposits Finding Resolution Status: Resolved Views of Responsible Officials Management has made the required August replacement reserve deposit in the amount of $7,365 on March 25, 2022.
Show full finding ▾Hide full finding ▴Finding No. 2021-002; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), Assistance Listing 14.157 Criteria The terms of the PRAC contract require that the project make monthly deposits to its replacement reserve. Condition During the year ended December 31, 2021, the project did not make the required monthly deposits to the replacement reserve in the amount of $7,365 during August 2021. The project is required to make monthly deposits to the reserve in the amount of $7,365. Cause Controls are not in place to ensure that required replacement reserve deposits are made timely. Effect or Potential Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the Regulatory Agreement. Questioned Costs $7,365 Identification as a Repeat Finding - None Recommendation Management should establish internal controls and procedures to ensure that required replacement reserve deposits are made timely. Auditor Noncompliance Code: N - Reserve for replacement deposits Finding Resolution Status: Resolved Views of Responsible Officials Management has made the required August replacement reserve deposit in the amount of $7,365 on March 25, 2022.
ST. PATRICK APARTMENTS II, INC. 11810 Grand Park Avenue, Suite 600 North Bethesda, MD 20852 CORRECTIVE ACTION PLAN Project Legal Name: St. Patrick Apartments II, Inc. HUD Project Number: 085-EE042 Audit Firm: CohnReznick, LLP Period covered by this audit: Year ended December 31, 2021 Person responsible: Bobby Custer, Director of Asset Management, Foundation Housing Bobby@foundationhousing.com Current Findings on the Schedule of Findings, Questioned Costs and Recommendations A. Finding 2021-001 a. Comments on Findings and Recommendations 2021-001: We agree with the auditor that the project did not make the required residual receipts reserve deposit in the amount of $4,455 within 90 days of year end, as required by HUD. b. Actions Taken or Planned on the Finding 2021-001: The required residual receipts reserve deposit based upon December 31, 2020, in the amount of $4,455 was made on June 25, 2021 (within 90 days of the issuance of the annual audited financial statement). B. Finding 2021-002 a. Comments on Findings and Recommendations 2021-002: We agree with the auditor that the project did not make the required monthly deposits to the replacement reserve in the amount of $7,365 during August 2021. b. Actions Taken or Planned on the Finding 2021-002: The required August replacement reserve deposit in the amount of $7,365 was made on March 25, 2022. Status of Corrective Actions on Findings Reported in the Schedule of the Status of Prior Year Findings, Questioned Costs and Recommendations A. Finding 2020-001 a. Comments on Findings and Recommendations No further commentary considered necessary as management made the required residual receipt deposit based upon December 31, 2019, surplus cash in the amount of $85,889 on December 17, 2020.
FAC accepted this audit on July 18, 2021 — management decision was due January 18, 2022.
Department of Housing and Urban Development Finding No. 2020-001; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), CFDA 14.157 Statement of Condition During the year ended December 31, 2020, management did not make the required residual receipts reserve deposit in the amount of $85,889 within 90 days of year end, as required by HUD. The residual receipts amount was deposited on December 17, 2020. Criteria - Special Tests and Provisions Residual receipts reserve deposits should be made within 90 days of year end. Questioned Costs $85,889 Effect The Corporation is not in compliance with the requirements of the Regulatory Agreement. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits Finding Resolution Status: Resolved Views of Responsible Officials and Planned Corrective Actions Management has made the required residual receipt deposit based upon December 31, 2019, surplus cash in the amount of $85,889 on December 17, 2020.
Show full finding ▾Hide full finding ▴Department of Housing and Urban Development Finding No. 2020-001; Supportive Housing for the Elderly Section 202 Capital Advance (with "Project Rental Assistance Contract"), CFDA 14.157 Statement of Condition During the year ended December 31, 2020, management did not make the required residual receipts reserve deposit in the amount of $85,889 within 90 days of year end, as required by HUD. The residual receipts amount was deposited on December 17, 2020. Criteria - Special Tests and Provisions Residual receipts reserve deposits should be made within 90 days of year end. Questioned Costs $85,889 Effect The Corporation is not in compliance with the requirements of the Regulatory Agreement. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits Finding Resolution Status: Resolved Views of Responsible Officials and Planned Corrective Actions Management has made the required residual receipt deposit based upon December 31, 2019, surplus cash in the amount of $85,889 on December 17, 2020.
CORRECTIVE ACTION PLAN Project Legal Name: St. Patrick Apartments II, Inc. HUD Project Number: 085-EE042 Audit Firm: CohnReznick, LLP Period covered by this audit: Year ended December 31, 2020 Person responsible: Bobby Custer, Director of Asset Management, Foundation Housing Bobby@foundationhousing.com Current Findings on the Schedule of Findings, Questioned Costs and Recommendations A. Finding 2020-001 a. Comments on Findings and Recommendations 2020-001: We agree with the auditor that the project did not make the required residual receipts reserve deposit in the amount of $85,889 within 90 days of year end, as required by HUD. b. Actions Taken or Planned on the Finding 2020-001: The required residual receipts reserve deposit based upon December 31, 2019, in the amount of $85,889 was made on December 17, 2020 (within 90 days of the issuance of the annual audited financial statement). Status of Corrective Actions on Findings Reported in the Schedule of the Status of Prior Year Findings, Questioned Costs and Recommendations A. Finding 2019-001 a. Comments on Findings and Recommendations No further commentary considered necessary as the corrective action was completed prior to the audit report issued on September 29, 2020, for the period July 1, 2018 through December 31, 2019.
FAC accepted this audit on January 6, 2021 — management decision was due July 6, 2021.
Department of Housing and Urban Development (Finding No. 2019-001; Section 202 Capital Advance, CFDA 14.157) Statement of Condition - During the period May 1, 2019 through December 31, 2019, the project did not make the required monthly deposits to the replacement reserve in the amount of $18,483. Criteria - Special Tests and Provisions - The Regulatory Agreement requires that the project make monthly deposits to its replacement reserve. Questioned Costs - $18,483 Effect - Failure to make monthly payments resulted in an underfunding of the replacement reserve and a violation of the Regulatory Agreement. Cause - Subsequent to the board of director transition and change in management agent there was a misscommunication between Owner and Agent regarding the monthly replacement reserve deposits and as a result the property did not make all of the deposits required in 2019. The total shortfall in replacement reserve deposits amounted to $18,483. Recommendation - Management should ensure that the replacement reserve is funded in accordance with the terms of the Regulatory Agreement. Auditor Noncompliance Code: N - Reserve for replacements deposits Finding Resolution Status: Resolved Views of Responsible Officials and Planned Corrective Actions - Subsequent to December 31, 2019, management has made a catch-up deposit in the amount of $18,483 to bring the replacement reserve funding requirement current.
Show full finding ▾Hide full finding ▴Department of Housing and Urban Development (Finding No. 2019-001; Section 202 Capital Advance, CFDA 14.157) Statement of Condition - During the period May 1, 2019 through December 31, 2019, the project did not make the required monthly deposits to the replacement reserve in the amount of $18,483. Criteria - Special Tests and Provisions - The Regulatory Agreement requires that the project make monthly deposits to its replacement reserve. Questioned Costs - $18,483 Effect - Failure to make monthly payments resulted in an underfunding of the replacement reserve and a violation of the Regulatory Agreement. Cause - Subsequent to the board of director transition and change in management agent there was a misscommunication between Owner and Agent regarding the monthly replacement reserve deposits and as a result the property did not make all of the deposits required in 2019. The total shortfall in replacement reserve deposits amounted to $18,483. Recommendation - Management should ensure that the replacement reserve is funded in accordance with the terms of the Regulatory Agreement. Auditor Noncompliance Code: N - Reserve for replacements deposits Finding Resolution Status: Resolved Views of Responsible Officials and Planned Corrective Actions - Subsequent to December 31, 2019, management has made a catch-up deposit in the amount of $18,483 to bring the replacement reserve funding requirement current.
CORRECTIVE ACTION PLAN Project Legal Name: St. Patrick Apartments II, Inc. HUD Project Number: 085-EE042 Audit Firm: CohnReznick, LLP Period covered by this audit: July 1, 2018 through December 31, 2019 Findings and Questioned Costs ? Major Federal Awards Programs Audit A. Finding No. 2019-001 a. Comments on Findings and Recommendations 2019-001: We agree with the auditor that the project did not make all of the required deposits to the replacement reserve in 2019. This was the result of mis-communication between Owner & Agent. This issue was noticed by Ownership & Management as part of the 2020 annual budget implementation & financial statement review process. After the issue was noted, the property began making monthly deposits to correct the issue. b. Actions Taken or Planned 2019-001: The deposits that were not made timely in 2019 have been deposited into the property?s replacement reserve prior to audit being completed. Ownership has clarified the mis-communication and has updated their procedure to ensure that the appropriate amount is deposited into the property?s replacement reserve monthly going forward. Status of Corrective Actions on Prior Findings - Not applicable, as there were no prior year findings.
FAC accepted this audit on October 28, 2018 — management decision was due April 28, 2019.
FAC accepted this audit on October 28, 2018 — management decision was due April 28, 2019.
GSA_MIGRATION
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Show full finding ▾Hide full finding ▴FAC accepted this audit on November 7, 2016 — management decision was due May 7, 2017.
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