Audit 18183

FY End
2022-09-30
Total Expended
$1.57M
Findings
112
Programs
6
Organization: Center City Housing Corp. (MN)
Year: 2022 Accepted: 2023-08-10
Auditor: Mahoney

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
12410 2022-003 Significant Deficiency - L
12411 2022-003 Significant Deficiency - L
12412 2022-003 Significant Deficiency - L
12413 2022-003 Significant Deficiency - L
12414 2022-003 Significant Deficiency - L
12415 2022-003 Significant Deficiency - L
12416 2022-003 Significant Deficiency - L
12417 2022-003 Significant Deficiency - L
12418 2022-003 Significant Deficiency - L
12419 2022-003 Significant Deficiency - L
12560 2022-003 Significant Deficiency - L
12561 2022-003 Significant Deficiency - L
12562 2022-003 Significant Deficiency - L
12563 2022-003 Significant Deficiency - L
12564 2022-003 Significant Deficiency - L
12565 2022-003 Significant Deficiency - L
12657 2022-003 Significant Deficiency - L
12658 2022-003 Significant Deficiency - L
12659 2022-003 Significant Deficiency - L
12660 2022-003 Significant Deficiency - L
12661 2022-003 Significant Deficiency - L
12662 2022-003 Significant Deficiency - L
12663 2022-003 Significant Deficiency - L
12664 2022-003 Significant Deficiency - L
12665 2022-003 Significant Deficiency - L
12666 2022-003 Significant Deficiency - L
12667 2022-003 Significant Deficiency - L
12668 2022-002 Significant Deficiency - E
12669 2022-002 Significant Deficiency - E
12670 2022-001 Material Weakness - P
12671 2022-001 Material Weakness - P
12672 2022-001 Material Weakness - P
12673 2022-001 Material Weakness - P
12674 2022-001 Material Weakness - P
12675 2022-001 Material Weakness - P
12676 2022-001 Material Weakness - P
12677 2022-001 Material Weakness - P
12678 2022-001 Material Weakness - P
12679 2022-001 Material Weakness - P
12680 2022-001 Material Weakness - P
12681 2022-001 Material Weakness - P
12682 2022-001 Material Weakness - P
12683 2022-001 Material Weakness - P
12684 2022-001 Material Weakness - P
12685 2022-001 Material Weakness - P
12686 2022-001 Material Weakness - P
12687 2022-001 Material Weakness - P
12688 2022-001 Material Weakness - P
12689 2022-001 Material Weakness - P
12690 2022-001 Material Weakness - P
12691 2022-001 Material Weakness - P
12692 2022-001 Material Weakness - P
12693 2022-001 Material Weakness - P
12694 2022-001 Material Weakness - P
12695 2022-001 Material Weakness - P
12696 2022-001 Material Weakness - P
588852 2022-003 Significant Deficiency - L
588853 2022-003 Significant Deficiency - L
588854 2022-003 Significant Deficiency - L
588855 2022-003 Significant Deficiency - L
588856 2022-003 Significant Deficiency - L
588857 2022-003 Significant Deficiency - L
588858 2022-003 Significant Deficiency - L
588859 2022-003 Significant Deficiency - L
588860 2022-003 Significant Deficiency - L
588861 2022-003 Significant Deficiency - L
589002 2022-003 Significant Deficiency - L
589003 2022-003 Significant Deficiency - L
589004 2022-003 Significant Deficiency - L
589005 2022-003 Significant Deficiency - L
589006 2022-003 Significant Deficiency - L
589007 2022-003 Significant Deficiency - L
589099 2022-003 Significant Deficiency - L
589100 2022-003 Significant Deficiency - L
589101 2022-003 Significant Deficiency - L
589102 2022-003 Significant Deficiency - L
589103 2022-003 Significant Deficiency - L
589104 2022-003 Significant Deficiency - L
589105 2022-003 Significant Deficiency - L
589106 2022-003 Significant Deficiency - L
589107 2022-003 Significant Deficiency - L
589108 2022-003 Significant Deficiency - L
589109 2022-003 Significant Deficiency - L
589110 2022-002 Significant Deficiency - E
589111 2022-002 Significant Deficiency - E
589112 2022-001 Material Weakness - P
589113 2022-001 Material Weakness - P
589114 2022-001 Material Weakness - P
589115 2022-001 Material Weakness - P
589116 2022-001 Material Weakness - P
589117 2022-001 Material Weakness - P
589118 2022-001 Material Weakness - P
589119 2022-001 Material Weakness - P
589120 2022-001 Material Weakness - P
589121 2022-001 Material Weakness - P
589122 2022-001 Material Weakness - P
589123 2022-001 Material Weakness - P
589124 2022-001 Material Weakness - P
589125 2022-001 Material Weakness - P
589126 2022-001 Material Weakness - P
589127 2022-001 Material Weakness - P
589128 2022-001 Material Weakness - P
589129 2022-001 Material Weakness - P
589130 2022-001 Material Weakness - P
589131 2022-001 Material Weakness - P
589132 2022-001 Material Weakness - P
589133 2022-001 Material Weakness - P
589134 2022-001 Material Weakness - P
589135 2022-001 Material Weakness - P
589136 2022-001 Material Weakness - P
589137 2022-001 Material Weakness - P
589138 2022-001 Material Weakness - P

Contacts

Name Title Type
FDU6Y7GFNJZ5 Kris Meyer Auditee
2186257261 Elizabeth Barchenger Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: (1) Expenditures reported on 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. (2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Center City Housing Corp. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federalgrant activity of Center City Housing Corp. and affiliates under programs of the federal government forthe year ended September 30, 2022. This schedule includes wholly owned entities, and excludes theconsolidated investments that are not wholly owned by Center City Housing Corp. consisting of CC SanMarco, LLC; Center City Windwood Partners LP; MPA Limited Partners II Limited Partnership; HillsideApartments Duluth, LLLP; Rochester Youth and Families, LLLP; Gateway Properties, LLLP; Park Place ofBemidji, LLLP; Garfield Square, LLLP; and Cahill Place, LLLP. The information in this Schedule ispresented 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 (theUniform Guidance). Because the Schedule presents only a selected portion of the operations of CenterCity Housing Corp. and affiliates, it is not intended to and does not present the financial position,changes in net assets, or cash flows of Center City Housing Corp. and affiliates.
Title: Note 4. Refundable Advances Accounting Policies: (1) Expenditures reported on 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. (2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Center City Housing Corp. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. All Federal expenditures for the Home Investment Partnerships are related to advances from previous years for which the grantor imposes continuing compliance requirements. The balance of the loans outstanding as of September 30, 2022 is $400,000.

Finding Details

2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-002: Lack of Documentation for Review of Tenant Files Federal Departments: Department of Housing and Urban Development Assistance Listing #: 14.239 Internal Controls Significant Deficiency Category of Finding ? Eligibility Criteria ? Uniform Guidance requires in S200.303 that nonprofit organizations establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition ? Personnel at the Corporation were unable to produce documentation supporting the review of tenant files for tenant eligibility. Cause ? The Corporation has an informal process around tenant file review. It was clearly communicated to the team that reviews are required, and checklist were provided, but it was not clearly communicated that documentation needed to be maintained to show the review occurred. Effect ? A tenant could be ineligible and it would not be caught as a file review was not completed, or the review is not properly completed and no one would know since there was no documentation of the review or lack of review. Recommendation ? We recommend that management create written tenant file review policies and procedures which include a requirement that the review process be documented when reviews are completed. Auditee?s comments and response ? The Corporation created written policies and procedures for affordable housing program compliance and review of the applicable tenant files in fiscal year 2023 and is in the process of adopting these policies and procedures. Responsible party for corrective action: Nancy Cashman, Executive Director
2022-002: Lack of Documentation for Review of Tenant Files Federal Departments: Department of Housing and Urban Development Assistance Listing #: 14.239 Internal Controls Significant Deficiency Category of Finding ? Eligibility Criteria ? Uniform Guidance requires in S200.303 that nonprofit organizations establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition ? Personnel at the Corporation were unable to produce documentation supporting the review of tenant files for tenant eligibility. Cause ? The Corporation has an informal process around tenant file review. It was clearly communicated to the team that reviews are required, and checklist were provided, but it was not clearly communicated that documentation needed to be maintained to show the review occurred. Effect ? A tenant could be ineligible and it would not be caught as a file review was not completed, or the review is not properly completed and no one would know since there was no documentation of the review or lack of review. Recommendation ? We recommend that management create written tenant file review policies and procedures which include a requirement that the review process be documented when reviews are completed. Auditee?s comments and response ? The Corporation created written policies and procedures for affordable housing program compliance and review of the applicable tenant files in fiscal year 2023 and is in the process of adopting these policies and procedures. Responsible party for corrective action: Nancy Cashman, Executive Director
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-003: Filing of Single Audit Report Federal Departments: Department of Housing and Urban Development Assistance Listing #: All programs Internal Controls Significant Deficiency & Compliance Category of Finding ? Reporting Criteria ? Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition ? The Corporation did not submit the Single Audit Reporting Package for the year ended September 30, 2021 within nine months after the end of the audit period (June 30, 2022). Cause ? The Corporation faced turnover and short staffing within the accounting department during fiscal year 2021. Additionally, 12 properties were brought in-house for property management that had historically been managed by a third party, and these properties required additional attention from management to get them properly set-up within the Organization's accounting system. This additional work while short-staffed cause the Corporation to not complete the year-end close in a timely and efficient manner. As a result, the audit was not completed until after the June 30, 2022 deadline. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation ?We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee?s comments and response ? Management of the Corporation hired additional staff to allow management the additional time necessary to prepare and review internal financial statements in a timely and efficient manner so that the audit can begin and be completed in a timely and efficient manner. A separate issue arose during the 2022 audit which will cause a repeat finding in the 2023 audit, but Management believes their processes are properly designed to ensure timely filing of the Single Audit Reporting Package under normal circumstances. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-002: Lack of Documentation for Review of Tenant Files Federal Departments: Department of Housing and Urban Development Assistance Listing #: 14.239 Internal Controls Significant Deficiency Category of Finding ? Eligibility Criteria ? Uniform Guidance requires in S200.303 that nonprofit organizations establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition ? Personnel at the Corporation were unable to produce documentation supporting the review of tenant files for tenant eligibility. Cause ? The Corporation has an informal process around tenant file review. It was clearly communicated to the team that reviews are required, and checklist were provided, but it was not clearly communicated that documentation needed to be maintained to show the review occurred. Effect ? A tenant could be ineligible and it would not be caught as a file review was not completed, or the review is not properly completed and no one would know since there was no documentation of the review or lack of review. Recommendation ? We recommend that management create written tenant file review policies and procedures which include a requirement that the review process be documented when reviews are completed. Auditee?s comments and response ? The Corporation created written policies and procedures for affordable housing program compliance and review of the applicable tenant files in fiscal year 2023 and is in the process of adopting these policies and procedures. Responsible party for corrective action: Nancy Cashman, Executive Director
2022-002: Lack of Documentation for Review of Tenant Files Federal Departments: Department of Housing and Urban Development Assistance Listing #: 14.239 Internal Controls Significant Deficiency Category of Finding ? Eligibility Criteria ? Uniform Guidance requires in S200.303 that nonprofit organizations establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition ? Personnel at the Corporation were unable to produce documentation supporting the review of tenant files for tenant eligibility. Cause ? The Corporation has an informal process around tenant file review. It was clearly communicated to the team that reviews are required, and checklist were provided, but it was not clearly communicated that documentation needed to be maintained to show the review occurred. Effect ? A tenant could be ineligible and it would not be caught as a file review was not completed, or the review is not properly completed and no one would know since there was no documentation of the review or lack of review. Recommendation ? We recommend that management create written tenant file review policies and procedures which include a requirement that the review process be documented when reviews are completed. Auditee?s comments and response ? The Corporation created written policies and procedures for affordable housing program compliance and review of the applicable tenant files in fiscal year 2023 and is in the process of adopting these policies and procedures. Responsible party for corrective action: Nancy Cashman, Executive Director
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations
2022-001: Audit Adjustments and Oversight of the Financial Reporting Process Material Weakness Criteria ? Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition ? During the annual audit, approximately twenty adjustments were made to the Corporation?s financial statements to properly record development activity that in the aggregate, were material to the financial statements. Management reviewed, approved, and accepted responsibility for the audit adjustments before the financial statements were issued. The need for us to record significant audit adjustments indicates a break down in the internal controls related to preparing and reviewing the Corporation?s financial statements which we consider a material weakness because a misstatement of financial statements could occur and not be prevented or detected. Cause ? There was significant staff turnover in fiscal year 2022. The new finance team members had a steep learning curve around properly accounting for certain real estate activities, particularly development related accounting. Also, during the year-end close, the Director of Operations ? the most knowledgeable individual in this area was ill and unable to perform the in-depth review that she ordinarily would have performed before financials were sent to the auditors. Effect ? A material misstatement of the financial statement could occur and not be prevented or detected. Members of management using the Corporation?s internal books and records may not have complete and accurate information throughout the year. Recommendation ? We recommend the Corporation develop and implement a process around properly recording and reviewing development accounting to ensure that necessary adjustments and reconciliations are performed before year-end. This review should ensure that the books for the year under audit make sense, not just the books for the project?s life to date. Additionally, additional education and cross training should be implemented in the accounting team to offset the negative effect of the Director of Operations being unavailable in the future. Auditee's comments and response ? The Corporation continues to work on educating their new team and implementing good financial statement review processes. Management also intends to implement a simplified development accounting process going forward. Responsible party for corrective action: Kris Meyer, Director of Operations