FAC Explorer

Audit 2223

FY End
2023-06-30
Total Expended
$1.33M
Findings
4
Programs
1
Organization: Rio Housing Association, Inc. /covenant Place 075-Ee045 (WI)
Year: 2023 Accepted: 2023-11-03
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1152 2023-003 Material Weakness Yes P
1153 2023-003 Material Weakness Yes P
577594 2023-003 Material Weakness Yes P
577595 2023-003 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $33,282 Yes 1

Contacts

Name Title Type
E65PKVAGB3G5 Mary Gilberts Auditee
6088384000 Dawn Yarrington Auditor
No contacts on file

Notes to SEFA

Title: HUD CAPITAL ADVANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of The Rio Housing Association, Inc. under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of The Rio Housing Association, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Rio Housing Association, Inc. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Rio Housing Association, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The balance of the HUD capital advance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. There were no additional HUD loans during the year. The balance of the HUD insured mortgage outstanding at June 30, 2023 is as follows: Program Title: U.S. Department of Housing and Urban Development: Section 202 Capital Advance Federal Assistance Listing Number: 14.157 Amount Outstanding: $1,297,200

Finding Details

Finding 2023-003
Segregation of Duties Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Assistance Listing Number: 14.157 Federal Award Identification Number and Year: WI39S961001 Award Period: 2022-2023 Type of Finding: • Material Weakness in Internal Control over Financial Reporting • Material Weakness in Internal Control Over Compliance Criteria or specific requirement: Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Condition: Responsibilities related to cash receipts, cash disbursements, certifications of tenant eligibility, replacement reserve deposits, residual receipts deposits, and financial reporting have not been segregated; a single individual collects receipts, prepares and signs checks, prepares and approves certifications of tenant eligibility, and maintains the accounting records if the Project. Neither cash receipts, cash disbursements, financial records, not bank reconciliations are reviewed on a regular basis by an individual other than the preparer. Monitoring controls are not in place to ensure the certifications of tenant eligibility have been completed accurately and timely, replacement reserve deposits are made monthly, or the residual receipts calculation is accurate and any required deposits are made within 90 days of the end of the fiscal year. Questioned Costs: None Context: Small staff prevents adequate segregation of duties. Cause: The Project is management by management agent with limited staff. Small Staff prevents adequate segregation of duties. Effect: Lack of segregation of duties could result in financial statement misstatement, caused by error or fraud, that would not be detected or prevented by the Project. Repeat Finding: Repeat Finding 2022-003. Recommendation: The Project should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Views of Responsible officials and planned corrective actions: There is no disagreement with the finding. The board of directors will continue to closely monitor the financial operations of the Project.
Finding 2023-003
Segregation of Duties Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Assistance Listing Number: 14.157 Federal Award Identification Number and Year: WI39S961001 Award Period: 2022-2023 Type of Finding: • Material Weakness in Internal Control over Financial Reporting • Material Weakness in Internal Control Over Compliance Criteria or specific requirement: Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Condition: Responsibilities related to cash receipts, cash disbursements, certifications of tenant eligibility, replacement reserve deposits, residual receipts deposits, and financial reporting have not been segregated; a single individual collects receipts, prepares and signs checks, prepares and approves certifications of tenant eligibility, and maintains the accounting records if the Project. Neither cash receipts, cash disbursements, financial records, not bank reconciliations are reviewed on a regular basis by an individual other than the preparer. Monitoring controls are not in place to ensure the certifications of tenant eligibility have been completed accurately and timely, replacement reserve deposits are made monthly, or the residual receipts calculation is accurate and any required deposits are made within 90 days of the end of the fiscal year. Questioned Costs: None Context: Small staff prevents adequate segregation of duties. Cause: The Project is management by management agent with limited staff. Small Staff prevents adequate segregation of duties. Effect: Lack of segregation of duties could result in financial statement misstatement, caused by error or fraud, that would not be detected or prevented by the Project. Repeat Finding: Repeat Finding 2022-003. Recommendation: The Project should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Views of Responsible officials and planned corrective actions: There is no disagreement with the finding. The board of directors will continue to closely monitor the financial operations of the Project.
Finding 2023-003
Segregation of Duties Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Assistance Listing Number: 14.157 Federal Award Identification Number and Year: WI39S961001 Award Period: 2022-2023 Type of Finding: • Material Weakness in Internal Control over Financial Reporting • Material Weakness in Internal Control Over Compliance Criteria or specific requirement: Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Condition: Responsibilities related to cash receipts, cash disbursements, certifications of tenant eligibility, replacement reserve deposits, residual receipts deposits, and financial reporting have not been segregated; a single individual collects receipts, prepares and signs checks, prepares and approves certifications of tenant eligibility, and maintains the accounting records if the Project. Neither cash receipts, cash disbursements, financial records, not bank reconciliations are reviewed on a regular basis by an individual other than the preparer. Monitoring controls are not in place to ensure the certifications of tenant eligibility have been completed accurately and timely, replacement reserve deposits are made monthly, or the residual receipts calculation is accurate and any required deposits are made within 90 days of the end of the fiscal year. Questioned Costs: None Context: Small staff prevents adequate segregation of duties. Cause: The Project is management by management agent with limited staff. Small Staff prevents adequate segregation of duties. Effect: Lack of segregation of duties could result in financial statement misstatement, caused by error or fraud, that would not be detected or prevented by the Project. Repeat Finding: Repeat Finding 2022-003. Recommendation: The Project should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Views of Responsible officials and planned corrective actions: There is no disagreement with the finding. The board of directors will continue to closely monitor the financial operations of the Project.
Finding 2023-003
Segregation of Duties Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Assistance Listing Number: 14.157 Federal Award Identification Number and Year: WI39S961001 Award Period: 2022-2023 Type of Finding: • Material Weakness in Internal Control over Financial Reporting • Material Weakness in Internal Control Over Compliance Criteria or specific requirement: Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Condition: Responsibilities related to cash receipts, cash disbursements, certifications of tenant eligibility, replacement reserve deposits, residual receipts deposits, and financial reporting have not been segregated; a single individual collects receipts, prepares and signs checks, prepares and approves certifications of tenant eligibility, and maintains the accounting records if the Project. Neither cash receipts, cash disbursements, financial records, not bank reconciliations are reviewed on a regular basis by an individual other than the preparer. Monitoring controls are not in place to ensure the certifications of tenant eligibility have been completed accurately and timely, replacement reserve deposits are made monthly, or the residual receipts calculation is accurate and any required deposits are made within 90 days of the end of the fiscal year. Questioned Costs: None Context: Small staff prevents adequate segregation of duties. Cause: The Project is management by management agent with limited staff. Small Staff prevents adequate segregation of duties. Effect: Lack of segregation of duties could result in financial statement misstatement, caused by error or fraud, that would not be detected or prevented by the Project. Repeat Finding: Repeat Finding 2022-003. Recommendation: The Project should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Views of Responsible officials and planned corrective actions: There is no disagreement with the finding. The board of directors will continue to closely monitor the financial operations of the Project.