FAC Explorer

Audit 14834

FY End
2022-12-31
Total Expended
$1.74M
Findings
4
Programs
2
Organization: Rccc Villa (IA)
Year: 2022 Accepted: 2024-01-31
Auditor: Tp Anderson & Company PC CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
10994 2022-003 - Yes N
10995 2022-004 Material Weakness Yes N
587436 2022-003 - Yes N
587437 2022-004 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.74M Yes 2
14.195 Section 8 Housing Assistance Payments Program $2,740 - 0

Contacts

Name Title Type
ENVVTEVF1QH5 Christy Hofsaess Auditee
5152230173 Tim McCartan Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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 Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of RCCC Villa, Project No. 074-EE045-WAH-IA, under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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 Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Organization received no additional loans during the year. The balance of the loan outstanding at December 31, 2022 consists of:

Finding Details

Finding 2022-003
Replacement Reserve: The Organization is required to make monthly deposits of $542.34 into a replacement reserves fund. We noted that these deposits were not being made during the year. A signed copy of the suspension authorization form for deposits to the replacement reserve could not be produced to indicate HUD’s approval. Criteria: Rules governing HUD projects with a capital advance loan required that monthly deposits be made into a replacement reserve account to aid in funding extraordinary maintenance and repair and replacement of capital items. Cause: Due to a change in management companies, the current management agent could not locate the suspension authorization form nor was a new copy obtained. Effect: Not having prior authorization from HUD for the suspension of the required deposits could jeopardize the Organization’s good standing with HUD and cause the project to be non-compliant with the Special Tests and Provisions requirement. Recommendation: The Board of Directors has a responsibility to ensure proper recordkeeping by requesting to review original documents issued by governing agencies. Response: We will ensure that proper documentation from HUD indicating that the Organization is authorized to suspend their monthly deposits into the replacement reserve fund is maintained. Conclusion: Response accepted.
Finding 2022-004
Replacement Reserve: The Organization is required to make monthly deposits of $542.34 into a replacement reserves fund. We noted that these deposits were not being made during the year. A signed copy of the suspension authorization form for deposits to the replacement reserve could not be produced to indicate HUD’s approval. Criteria: Rules governing HUD projects with a capital advance loan required that monthly deposits be made into a replacement reserve account to aid in funding extraordinary maintenance and repair and replacement of capital items. Cause: Due to a change in management companies, the current management agent could not locate the suspension authorization form nor was a new copy obtained. Effect: Not having prior authorization from HUD for the suspension of the required deposits could jeopardize the Organization’s good standing with HUD and cause the project to be non-compliant with the Special Tests and Provisions requirement. Recommendation: The Board of Directors has a responsibility to ensure proper recordkeeping by requesting to review original documents issued by governing agencies. Response and Corrective Action Planned: We will ensure that proper documentation from HUD indicating that the Organization is authorized to suspend their monthly deposits into the replacement reserve fund is maintained. Conclusion: Response accepted.
Finding 2022-003
Replacement Reserve: The Organization is required to make monthly deposits of $542.34 into a replacement reserves fund. We noted that these deposits were not being made during the year. A signed copy of the suspension authorization form for deposits to the replacement reserve could not be produced to indicate HUD’s approval. Criteria: Rules governing HUD projects with a capital advance loan required that monthly deposits be made into a replacement reserve account to aid in funding extraordinary maintenance and repair and replacement of capital items. Cause: Due to a change in management companies, the current management agent could not locate the suspension authorization form nor was a new copy obtained. Effect: Not having prior authorization from HUD for the suspension of the required deposits could jeopardize the Organization’s good standing with HUD and cause the project to be non-compliant with the Special Tests and Provisions requirement. Recommendation: The Board of Directors has a responsibility to ensure proper recordkeeping by requesting to review original documents issued by governing agencies. Response: We will ensure that proper documentation from HUD indicating that the Organization is authorized to suspend their monthly deposits into the replacement reserve fund is maintained. Conclusion: Response accepted.
Finding 2022-004
Replacement Reserve: The Organization is required to make monthly deposits of $542.34 into a replacement reserves fund. We noted that these deposits were not being made during the year. A signed copy of the suspension authorization form for deposits to the replacement reserve could not be produced to indicate HUD’s approval. Criteria: Rules governing HUD projects with a capital advance loan required that monthly deposits be made into a replacement reserve account to aid in funding extraordinary maintenance and repair and replacement of capital items. Cause: Due to a change in management companies, the current management agent could not locate the suspension authorization form nor was a new copy obtained. Effect: Not having prior authorization from HUD for the suspension of the required deposits could jeopardize the Organization’s good standing with HUD and cause the project to be non-compliant with the Special Tests and Provisions requirement. Recommendation: The Board of Directors has a responsibility to ensure proper recordkeeping by requesting to review original documents issued by governing agencies. Response and Corrective Action Planned: We will ensure that proper documentation from HUD indicating that the Organization is authorized to suspend their monthly deposits into the replacement reserve fund is maintained. Conclusion: Response accepted.