FAC Explorer

Audit 305787

FY End
2023-12-31
Total Expended
$13.35M
Findings
2
Programs
1
Organization: Cb Boulder Ridge LLC 092-35718 (MN)
Year: 2023 Accepted: 2024-05-08
Auditor: Mahoney Ulbrich Christiansen and Russ PA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396163 2023-001 Significant Deficiency - N
972605 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.134 Mortgage Insurance_rental Housing $13.35M Yes 1

Contacts

Name Title Type
JDL2KD6EACJ5 Elyse Clifford Auditee
6512889014 Katie McDonnell Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: (1) Expenditures are reported on the accrual basis of accounting except for the insured mortgage as discussed below. (2) CB Boulder Ridge LLC’s federal award is not based on eligible costs incurred. De Minimis Rate Used: N Rate Explanation: CB Boulder Ridge LLC has not made an election to the use of the 10% de minimis indirect cost rate described in the Uniform Guidance. This schedule includes the federal grant activity of CB Boulder Ridge LLC under programs of the federal government for the year ended December 31, 2023. The information presented 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 (the Uniform Guidance). Because the schedule presents only a selected portion of the operations of CB Boulder Ridge LLC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of CB Boulder Ridge LLC.
Title: Mortgage Insurance Accounting Policies: (1) Expenditures are reported on the accrual basis of accounting except for the insured mortgage as discussed below. (2) CB Boulder Ridge LLC’s federal award is not based on eligible costs incurred. De Minimis Rate Used: N Rate Explanation: CB Boulder Ridge LLC has not made an election to the use of the 10% de minimis indirect cost rate described in the Uniform Guidance. Federal expenditures for the mortgage insurance – rental housing program represent the December 31, 2022 balance of the mortgage funded in previous years ($13,349,385) for which HUD imposes continuing compliance requirements. The balance of the loan as of December 31, 2023 is $13,186,904.

Finding Details

Finding 2023-001
2023-001 – Distributions of Surplus Cash Federal Program – U.S. Department of Housing and Urban Development Assistance Listing Number 14.134 – Insured Mortgage – Rental Housing Noncompliance and Significant Deficiency Category of Finding – Special Tests and Provisions Use of Surplus Cash Criteria – Distributions from operating cash may only be paid from surplus cash, determined as of and after the semiannual fiscal period (June 30 and December 31). Condition – A distribution of $232,092 was paid to CommonBond Communities in 2023. The Company only had surplus cash of $129,602 as of December 31, 2022 and did not have any surplus cash at June 30, 2023 for distributions. Context – The Company made a distribution to CommonBond Communities in excess of surplus cash in 2023. Cause – Procedures in place to ensure that payment amounts are limited to the available surplus cash were not followed. Effect – Distributions exceeded surplus cash by $102,490. Identification of repeat finding - No Recommendation – The responsible employee should be reminded of the procedures in place to ensure there is sufficient surplus cash to make distributions. CommonBond Communities should return the excess distributions to the Company as soon as possible. Views of responsible officials and planned corrective actions - Management agrees with the finding. The responsible employee will receive additional training, and CommonBond will return the excess distributions in 2024.
Finding 2023-001
2023-001 – Distributions of Surplus Cash Federal Program – U.S. Department of Housing and Urban Development Assistance Listing Number 14.134 – Insured Mortgage – Rental Housing Noncompliance and Significant Deficiency Category of Finding – Special Tests and Provisions Use of Surplus Cash Criteria – Distributions from operating cash may only be paid from surplus cash, determined as of and after the semiannual fiscal period (June 30 and December 31). Condition – A distribution of $232,092 was paid to CommonBond Communities in 2023. The Company only had surplus cash of $129,602 as of December 31, 2022 and did not have any surplus cash at June 30, 2023 for distributions. Context – The Company made a distribution to CommonBond Communities in excess of surplus cash in 2023. Cause – Procedures in place to ensure that payment amounts are limited to the available surplus cash were not followed. Effect – Distributions exceeded surplus cash by $102,490. Identification of repeat finding - No Recommendation – The responsible employee should be reminded of the procedures in place to ensure there is sufficient surplus cash to make distributions. CommonBond Communities should return the excess distributions to the Company as soon as possible. Views of responsible officials and planned corrective actions - Management agrees with the finding. The responsible employee will receive additional training, and CommonBond will return the excess distributions in 2024.