Audit 29756

FY End

2022-06-30

Total Expended

$1.74M

Findings

2

Programs

2

Organization: Community Apartments Borrower Corp. (VA)

Year: 2022 Accepted: 2022-10-10

Auditor: Dooley & Vicars CPAS LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
37711	2022-001	-	-	C
614153	2022-001	-	-	C

ALN	Program	Spent	Major	Findings
14.181	Supportive Housing for Persons with Disabilities	$1.35M	Yes	1
14.218	Community Development Block Grants/entitlement Grants	$387,905	-	0

Contacts

Name	Title	Type
D11ZJZLGLL39	Robert Mouw	Auditee
7038783259	Jake Dooley	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Notes to Schedule of Expenditures of Federal AwardsThe accompanying schedule of expenditures of federal awards is prepared on theaccrual basis of accounting.The (*) to the right of a CFDA number identifies the grant as a major federalprogram as defined by 0MB Uniform Guidance.The amounts shown as current year expenditures represent only the federalportion of the actual program costs. Actual program costs, including the housingCorporation's portion, may be more than shown.For the year ended June 30, 2022, the Corporation did not elect to use the 10%de minimis indirect cost rate allowed in the Uniform Guidance, section 414.The Corporation received a Capital Grant and a Community Development BlockGrant from the U.S. Department of Housing and Urban Development. The grantbalances outstanding at the beginning of the year are included in the federalexpenditures presented in the Schedule. The grant balances at June 30, 2022,consists of: CFDA 14.181 Section 811 capital grant $1,236,900; 14.218 Community Development Block Grant $387,905. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001

Finding No. 2022-001 - Residual Receipts Account 31 CONDITION: The Corporation failed to make the required deposit to the residual receipts account with 60 days following year end. CRITERIA: Any project funds in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in a federally insurance account within 60 days following year end. QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: The cash surplus computed for the year ended June 30, 2021 was not deposited until January 28, 2022, outside of the 60-day window. CAUSE: The overall cause was a lack of effective management oversight and quality control over this program. RECOMMENDATION: The Corporation should compute the surplus cash within 60 days of year end, and if there is a surplus, deposit that amount into the residual receipts reserve in accordance with HUD guidelines.

Finding 2022-001

Finding No. 2022-001 - Residual Receipts Account 31 CONDITION: The Corporation failed to make the required deposit to the residual receipts account with 60 days following year end. CRITERIA: Any project funds in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in a federally insurance account within 60 days following year end. QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: The cash surplus computed for the year ended June 30, 2021 was not deposited until January 28, 2022, outside of the 60-day window. CAUSE: The overall cause was a lack of effective management oversight and quality control over this program. RECOMMENDATION: The Corporation should compute the surplus cash within 60 days of year end, and if there is a surplus, deposit that amount into the residual receipts reserve in accordance with HUD guidelines.