FAC Explorer

Audit 306659

FY End
2023-06-30
Total Expended
$1.09M
Findings
4
Programs
2
Organization: Cla Homes I, Corp. (VA)
Year: 2023 Accepted: 2024-05-20
Auditor: Marcum LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
397947 2023-002 Significant Deficiency Yes N
397948 2023-002 Significant Deficiency Yes N
974389 2023-002 Significant Deficiency Yes N
974390 2023-002 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities Capital Advance Program $1.02M Yes 1
14.181 Supportive Housing for Persons with Disabilities Prac $64,002 Yes 1

Contacts

Name Title Type
X3KYXVD9ZHK5 Monica Duggal Auditee
7033520388 Kimberly Maxwell Auditor
No contacts on file

Notes to SEFA

Title: Loans/ loans guarantee outstanding balance Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Schedule includes the federal award activity of CLA Homes I, Corp. (the Entity) 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 Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Entity, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Entity. De Minimis Rate Used: N Rate Explanation: The Entity has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Entity is reimbursed for programmatic and administrative costs in accordance with rules set forth by the U.S. Department of Housing and Urban Development. Supportive housing for persons with disabilities capital advance
Title: Federal loan program Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Schedule includes the federal award activity of CLA Homes I, Corp. (the Entity) 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 Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Entity, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Entity. De Minimis Rate Used: N Rate Explanation: The Entity has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Entity is reimbursed for programmatic and administrative costs in accordance with rules set forth by the U.S. Department of Housing and Urban Development. The Entity 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. The Entity received no additional loans during the year.

Finding Details

Finding 2023-002
AL number: 14.181 Supportive Housing for Persons with Disabilities Finding reference number: 2023-02 - Special Test and Provisions - Replacement Reserve Type of Finding: Reserve for Replacements Deposits Finding Resolution status: See corrective action plan. Criteria: As required by HUD an amount is to be deposited monthly in the reserve fund (Regulatory Agreement, item 5 (a)). The current HUD-9250 requires that the entity make monthly payments of $400 into a reserve fund for replacements held in a separate, federally insured account. Condition: The required $400 monthly deposit to the replacement reserve account was not transferred monthly from January 2022 through August 2022. Questioned costs: None identified. Context and effect: The Entity is required to make a monthly deposit to the replacement reserve account. Cause: The previous accountant who handled these deposits left CLA in Dec 2021. CLA hired a replacement who has been transitioning into the accounting role and responsibilities. Identification as Repeat Finding, if Applicable: This is a repeat finding. Recommendation: The Entity should enhance internal controls to ensure that it follows all regulatory agreement requirements. Responsible Official: Board of Directors, Executive Director Views of Responsible Officials: See corrective action plan.
Finding 2023-002
AL number: 14.181 Supportive Housing for Persons with Disabilities Finding reference number: 2023-02 - Special Test and Provisions - Replacement Reserve Type of Finding: Reserve for Replacements Deposits Finding Resolution status: See corrective action plan. Criteria: As required by HUD an amount is to be deposited monthly in the reserve fund (Regulatory Agreement, item 5 (a)). The current HUD-9250 requires that the entity make monthly payments of $400 into a reserve fund for replacements held in a separate, federally insured account. Condition: The required $400 monthly deposit to the replacement reserve account was not transferred monthly from January 2022 through August 2022. Questioned costs: None identified. Context and effect: The Entity is required to make a monthly deposit to the replacement reserve account. Cause: The previous accountant who handled these deposits left CLA in Dec 2021. CLA hired a replacement who has been transitioning into the accounting role and responsibilities. Identification as Repeat Finding, if Applicable: This is a repeat finding. Recommendation: The Entity should enhance internal controls to ensure that it follows all regulatory agreement requirements. Responsible Official: Board of Directors, Executive Director Views of Responsible Officials: See corrective action plan.
Finding 2023-002
AL number: 14.181 Supportive Housing for Persons with Disabilities Finding reference number: 2023-02 - Special Test and Provisions - Replacement Reserve Type of Finding: Reserve for Replacements Deposits Finding Resolution status: See corrective action plan. Criteria: As required by HUD an amount is to be deposited monthly in the reserve fund (Regulatory Agreement, item 5 (a)). The current HUD-9250 requires that the entity make monthly payments of $400 into a reserve fund for replacements held in a separate, federally insured account. Condition: The required $400 monthly deposit to the replacement reserve account was not transferred monthly from January 2022 through August 2022. Questioned costs: None identified. Context and effect: The Entity is required to make a monthly deposit to the replacement reserve account. Cause: The previous accountant who handled these deposits left CLA in Dec 2021. CLA hired a replacement who has been transitioning into the accounting role and responsibilities. Identification as Repeat Finding, if Applicable: This is a repeat finding. Recommendation: The Entity should enhance internal controls to ensure that it follows all regulatory agreement requirements. Responsible Official: Board of Directors, Executive Director Views of Responsible Officials: See corrective action plan.
Finding 2023-002
AL number: 14.181 Supportive Housing for Persons with Disabilities Finding reference number: 2023-02 - Special Test and Provisions - Replacement Reserve Type of Finding: Reserve for Replacements Deposits Finding Resolution status: See corrective action plan. Criteria: As required by HUD an amount is to be deposited monthly in the reserve fund (Regulatory Agreement, item 5 (a)). The current HUD-9250 requires that the entity make monthly payments of $400 into a reserve fund for replacements held in a separate, federally insured account. Condition: The required $400 monthly deposit to the replacement reserve account was not transferred monthly from January 2022 through August 2022. Questioned costs: None identified. Context and effect: The Entity is required to make a monthly deposit to the replacement reserve account. Cause: The previous accountant who handled these deposits left CLA in Dec 2021. CLA hired a replacement who has been transitioning into the accounting role and responsibilities. Identification as Repeat Finding, if Applicable: This is a repeat finding. Recommendation: The Entity should enhance internal controls to ensure that it follows all regulatory agreement requirements. Responsible Official: Board of Directors, Executive Director Views of Responsible Officials: See corrective action plan.