FAC Explorer

Audit 22171

FY End
2022-06-30
Total Expended
$1.27M
Findings
4
Programs
2
Organization: Parc Developmental Homes, Inc., Project No 072-11104 (IL)
Year: 2022 Accepted: 2022-12-19
Auditor: Cliftonlarsonallen

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22617 2022-001 Significant Deficiency Yes P
22618 2022-002 Significant Deficiency - P
599059 2022-001 Significant Deficiency Yes P
599060 2022-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.11M Yes 2
14.195 Section 8 Housing Assistance Payments Program $164,276 - 0

Contacts

Name Title Type
HT99TTEK5YM4 Steve Rollins Auditee
3096913800 Rusty Gibson Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Basis of AccountingThe accompanying schedule of expenditures of federal awards is prepared on the accrualbasis of accounting. Nonmonetary AssistanceAt the beginning of the year, the mortgage note payable was $1,105,939. After the current year payments, the mortgage note payable, in the amount of $1,073,493, to P/R Mortgage &Investment Corp., is guaranteed by the U.S. Department of Housing and UrbanDevelopment and secured by the housing project. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 1073493.
Title: ADDITIONAL INFORMATION Accounting Policies: Basis of AccountingThe accompanying schedule of expenditures of federal awards is prepared on the accrualbasis of accounting. Nonmonetary AssistanceAt the beginning of the year, the mortgage note payable was $1,105,939. After the current year payments, the mortgage note payable, in the amount of $1,073,493, to P/R Mortgage &Investment Corp., is guaranteed by the U.S. Department of Housing and UrbanDevelopment and secured by the housing project. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Corporation did not receive any federal awards in the form of noncash assistance forinsurance in effect during the year. In addition, the Corporation did not pass through any federal grants to subrecipients.

Finding Details

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