FAC Explorer

Audit 17873

FY End
2022-06-30
Total Expended
$1.01M
Findings
4
Programs
2
Organization: Parc Residential Options, Inc., Project No. 072-Hd045 (IL)
Year: 2022 Accepted: 2022-12-19
Auditor: Cliftonlarsonallen

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22621 2022-001 Significant Deficiency Yes P
22622 2022-002 Significant Deficiency Yes P
599063 2022-001 Significant Deficiency Yes P
599064 2022-002 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $978,000 Yes 2
14.195 Section 8 Housing Assistance Payments Program $29,911 - 0

Contacts

Name Title Type
K84MU7G86GH5 Steve Rollins Auditee
3096913800 Rusty Gibson Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Basis of AccountingThe accompanying schedule of expenditures of federal awards is prepared on the accrualbasis of accounting. Nonmonetary AssistanceThe capital advance mortgage note in the amount of $978,000 to the U.S. Department ofHousing and Urban Development is secured by the apartment project. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 978000.
Title: ADDITIONAL INFORMATION Accounting Policies: Basis of AccountingThe accompanying schedule of expenditures of federal awards is prepared on the accrualbasis of accounting. Nonmonetary AssistanceThe capital advance mortgage note in the amount of $978,000 to the U.S. Department ofHousing and Urban Development is secured by the apartment project. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Corporation did not receive any federal awards in the form of noncash assistance forinsurance in effect during the year. In addition, the Corporation did not pass through any federal grants to subrecipients.

Finding Details

Finding 2022-001
Type of Finding: Significant Deficiency in Internal Control over Financial Reporting. Condition: There is minimal segregation of duties among personnel involved in the accounting function. Criteria or Specific Requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented if possible. Cause: There are a small number of personnel to whom to allocate responsibilities in accounting functions. Effect: A lack of segregation of duties increase the risk that errors may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes, Prior year finding 2021-002.
Finding 2022-002
Type of Finding: Other Matters, Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: HUD requires security deposits refunds to be disbursed to the former tenant and in the appropriate amount within 30 days of move-out. If no refund is given, the tenant should receive and itemized listing of any unpaid rent, damages to the unit, and any estimated cost for repair. Condition: We noted a refund was not provided to a tenant within 30 days after the tenant's move-out date.. Questioned Costs: None Context: We noted a refund was not provided to a tenant within 30 days after the tenant's move-out date. Cause: Management oversight. Effect: The corporation is not in compliance with HUD requirements. Repeat Finding: Yes. Prior year finding 2021-004
Finding 2022-001
Type of Finding: Significant Deficiency in Internal Control over Financial Reporting. Condition: There is minimal segregation of duties among personnel involved in the accounting function. Criteria or Specific Requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented if possible. Cause: There are a small number of personnel to whom to allocate responsibilities in accounting functions. Effect: A lack of segregation of duties increase the risk that errors may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes, Prior year finding 2021-002.
Finding 2022-002
Type of Finding: Other Matters, Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: HUD requires security deposits refunds to be disbursed to the former tenant and in the appropriate amount within 30 days of move-out. If no refund is given, the tenant should receive and itemized listing of any unpaid rent, damages to the unit, and any estimated cost for repair. Condition: We noted a refund was not provided to a tenant within 30 days after the tenant's move-out date.. Questioned Costs: None Context: We noted a refund was not provided to a tenant within 30 days after the tenant's move-out date. Cause: Management oversight. Effect: The corporation is not in compliance with HUD requirements. Repeat Finding: Yes. Prior year finding 2021-004