Audit 301274

FY End
2023-06-30
Total Expended
$923,066
Findings
2
Programs
1
Organization: Castleton Homes, Inc. (MD)
Year: 2023 Accepted: 2024-03-30

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
390519 2023-001 - - N
966961 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $53,466 Yes 0

Contacts

Name Title Type
ZREYWG5H48M5 Donna-Marie Coe Auditee
3017949444 Kathleen M Flaherty Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Summary of Significant Accounting Policies Accounting Policies: Note 1. Basis of Presentation – The Schedule of Expenditures of Federal Awards includes the federal award activity of Castleton Home, Inc. for the year ended June 30, 2023. The information in this Schedule is presented 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Castleton Homes, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Castleton Homes, Inc. De Minimis Rate Used: N Rate Explanation: Note 2. Summary of Significant Accounting Policies - Expenditures reported on the Schedule of Expenditures of Federal Awards 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. The Schedule of Expenditures of Federal Awards includes the federal award activity of Castleton Home, Inc. for the year ended June 30, 2023. The information in this Schedule is presented 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Castleton Homes, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Castleton Homes, Inc.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Note 1. Basis of Presentation – The Schedule of Expenditures of Federal Awards includes the federal award activity of Castleton Home, Inc. for the year ended June 30, 2023. The information in this Schedule is presented 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Castleton Homes, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Castleton Homes, Inc. De Minimis Rate Used: N Rate Explanation: Note 2. Summary of Significant Accounting Policies - Expenditures reported on the Schedule of Expenditures of Federal Awards 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. Expenditures reported on the Schedule of Expenditures of Federal Awards 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.
Title: Note 3. Indirect Cost Rate Accounting Policies: Note 1. Basis of Presentation – The Schedule of Expenditures of Federal Awards includes the federal award activity of Castleton Home, Inc. for the year ended June 30, 2023. The information in this Schedule is presented 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Castleton Homes, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Castleton Homes, Inc. De Minimis Rate Used: N Rate Explanation: Note 2. Summary of Significant Accounting Policies - Expenditures reported on the Schedule of Expenditures of Federal Awards 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. Castleton Homes, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Castleton Homes, Inc. is reimbursed for programmatic and administrative costs in accordance with rules set forth the by the U.S. Department of Housing and Urban Development.
Title: Note 4. Loans/Loan Guarantee Outstanding Balance Accounting Policies: Note 1. Basis of Presentation – The Schedule of Expenditures of Federal Awards includes the federal award activity of Castleton Home, Inc. for the year ended June 30, 2023. The information in this Schedule is presented 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Castleton Homes, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Castleton Homes, Inc. De Minimis Rate Used: N Rate Explanation: Note 2. Summary of Significant Accounting Policies - Expenditures reported on the Schedule of Expenditures of Federal Awards 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. Balance of outstanding loan at June 30, 2023: Federal Assistance Listing Number: 14.181Program name: Supportive Housing for Persons with Disabilities Capital Advance Program Outstanding balance: $869,600
Title: Note 5. Federal Loan Program Accounting Policies: Note 1. Basis of Presentation – The Schedule of Expenditures of Federal Awards includes the federal award activity of Castleton Home, Inc. for the year ended June 30, 2023. The information in this Schedule is presented 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Castleton Homes, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Castleton Homes, Inc. De Minimis Rate Used: N Rate Explanation: Note 2. Summary of Significant Accounting Policies - Expenditures reported on the Schedule of Expenditures of Federal Awards 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. Castleton Homes, Inc. received a U.S. Department of Housing and Urban Development capital advance under Section 811 of the National Affordable Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Castleton Homes, Inc. received no additional loans during the year current year.

Finding Details

Finding Number: 2023-001; Condition: The required deposits to the reserve for replacement account were not timely paid during the year ended June 30, 2023. Cirteria: The Regulatory Agreement requires monthly deposits to the reserve for replacement account. Effect: A required deposit to the reserve for replacement account was not paid. Cause: The required monthly deposit was not deposited. Recommendation: The Entity should pay teh required deposit. View of Responsible Officials:Due to a temporary lack of funds in Castleton Homes, Inc.'s operating account, we were unable to make the required deposit to the reserve account for March 2023. At that time, we were in the process of securing a loan from the reserve account to support our ongoing operating activities. Status: During October 2023, the $350 deposit was paid to the reserve for replacement account.
Finding Number: 2023-001; Condition: The required deposits to the reserve for replacement account were not timely paid during the year ended June 30, 2023. Cirteria: The Regulatory Agreement requires monthly deposits to the reserve for replacement account. Effect: A required deposit to the reserve for replacement account was not paid. Cause: The required monthly deposit was not deposited. Recommendation: The Entity should pay teh required deposit. View of Responsible Officials:Due to a temporary lack of funds in Castleton Homes, Inc.'s operating account, we were unable to make the required deposit to the reserve account for March 2023. At that time, we were in the process of securing a loan from the reserve account to support our ongoing operating activities. Status: During October 2023, the $350 deposit was paid to the reserve for replacement account.