FAC Explorer

Audit 101

FY End
2023-06-30
Total Expended
$1.01M
Findings
2
Programs
2
Organization: Creative Housing Iv, Inc. (AR)
Year: 2023 Accepted: 2023-10-19
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
86 2023-001 Material Weakness Yes N
576528 2023-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $937,300 Yes 1
14.195 Section 8 Housing Assistance Payments Program $73,198 - 0

Contacts

Name Title Type
P2T1KRTDWP35 Barbara Staggs Auditee
8708638194 Cynthia Burns Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB A-122 or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Creative Housing IV, Inc. (the Project) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Project, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Project.
Title: Federal Loan Programs Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB A-122 or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Project did not have a balance outstanding due to any federal loan programs included in the Project’s basic financial statements at June 30, 2023. The Project’s mortgage note with HUD through the Supportive Housing for Persons with Disabilities program was recorded as a contribution from HUD due to the terms described in the financial statements.

Finding Details

Finding 2023-001
Supportive Housing for the Elderly Assistance Listing NO. 14.157 U.S. Department of Housing and Urban Development (HUD) Project No. 082-EE061-NP-L8 Program Year 2021 Criteria or Specific Requirement – Special Tests and Provisions: Residual Receipts Account (24 CFR 891.400(e) and 891.600(e)) Condition – The required annual deposit to the residual receipts account for program year 2021 was not made. This deposit is required to be made within 60 days following year-end. Questioned Costs – None Context – The Project is required to calculate surplus cash at the end of each fiscal year and any amount greater than zero is required to be deposited to a federally insured residual receipts account within 60 days of year-end. The Project properly calculated surplus cash for fiscal year 2021; however, funds were not deposited into the residual receipts account as of 6/30/2023. Effect or potential effect – The Project did not comply with the residual receipts compliance requirement. Cause – Fiscal year 2021 was the second year the Project had surplus cash that was required to be deposited to the residual receipts account and management was dependent on HUD to communicate surplus cash. Identification as a Repeat Finding – Yes 2022-001 Recommendation – Management should create policies and procedures to identify and transfer surplus cash to the residual receipts account to ensure compliance with this requirement. View of Responsible Officials and Planned Corrective Actions – Management concurs with the finding. In the 2022 audit, it was found that Creative Housing IV, Inc. failed to make the surplus cash deposit for program year 2021 of $1,508. The deposit was made on September 7, 2023.
Finding 2023-001
Supportive Housing for the Elderly Assistance Listing NO. 14.157 U.S. Department of Housing and Urban Development (HUD) Project No. 082-EE061-NP-L8 Program Year 2021 Criteria or Specific Requirement – Special Tests and Provisions: Residual Receipts Account (24 CFR 891.400(e) and 891.600(e)) Condition – The required annual deposit to the residual receipts account for program year 2021 was not made. This deposit is required to be made within 60 days following year-end. Questioned Costs – None Context – The Project is required to calculate surplus cash at the end of each fiscal year and any amount greater than zero is required to be deposited to a federally insured residual receipts account within 60 days of year-end. The Project properly calculated surplus cash for fiscal year 2021; however, funds were not deposited into the residual receipts account as of 6/30/2023. Effect or potential effect – The Project did not comply with the residual receipts compliance requirement. Cause – Fiscal year 2021 was the second year the Project had surplus cash that was required to be deposited to the residual receipts account and management was dependent on HUD to communicate surplus cash. Identification as a Repeat Finding – Yes 2022-001 Recommendation – Management should create policies and procedures to identify and transfer surplus cash to the residual receipts account to ensure compliance with this requirement. View of Responsible Officials and Planned Corrective Actions – Management concurs with the finding. In the 2022 audit, it was found that Creative Housing IV, Inc. failed to make the surplus cash deposit for program year 2021 of $1,508. The deposit was made on September 7, 2023.