FAC Explorer

Audit 308046

FY End
2023-06-30
Total Expended
$5.51M
Findings
4
Programs
2
Organization: Southside Comm Housing CORP - Southside Manor (IL)
Year: 2023 Accepted: 2024-06-04
Auditor: Cliftonlarsonallen

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
399895 2023-001 Material Weakness Yes A
399896 2023-001 Material Weakness Yes A
976337 2023-001 Material Weakness Yes A
976338 2023-001 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $4.52M Yes 1
14.195 Section 8 Housing Assistance Payments Program $986,243 Yes 1

Contacts

Name Title Type
NVUVKDMLSNC5 Jeff Cottingham Auditee
3096732252 Dawn Carlson Auditor
No contacts on file

Notes to SEFA

Title: Additional Information Accounting Policies: Basis of Accounting - The accompanying schedule of expenditures of federal awards is prepared on the accrual basis of accounting. Nonmonetary Assistance - At the beginning of the year, the mortgage note payable was $4,520,617. After the current year payments, the mortgage note payable, in the amount of $4,404,714, to P/R Mortgage & Investment Corp., is guaranteed by the U.S. Department of Housing and Urban Development and secured by the housing project. De Minimis Rate Used: N Rate Explanation: The Corporation has net elected to use the 10 percent de minim is indirect cost rate as allowed under the Uniform Guidance. The Corporation did not receive any federal awards in the form of noncash assistance for insurance in effect suring the year. In addition, the Project did not pass through any federal grants to subrecipients.

Finding Details

Finding 2023-001
Segregation of Duties Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: There is not an ideal segregation of duties among personnel involved in the accounting function. A lack of proper segregation of duties could allow errors or irregularities to occur and go undetected. This condition is inherent in operations which, for sound economic conditions, must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Criteria or specific requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, if possible. Cause: For sound economic reasons, the Project and the management company must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Effect: A lack of segregation of duties increases the risk that errors or fraud may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes, Prior year finding 2022-001 Recommendation: When this condition exists, management's and the board's close supervision and review of accounting information is the best means of preventing or detecting errors and irregularities. Views of responsible officials and planned corrective actions: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical
Finding 2023-001
Segregation of Duties Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: There is not an ideal segregation of duties among personnel involved in the accounting function. A lack of proper segregation of duties could allow errors or irregularities to occur and go undetected. This condition is inherent in operations which, for sound economic conditions, must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Criteria or specific requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, if possible. Cause: For sound economic reasons, the Project and the management company must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Effect: A lack of segregation of duties increases the risk that errors or fraud may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes, Prior year finding 2022-001 Recommendation: When this condition exists, management's and the board's close supervision and review of accounting information is the best means of preventing or detecting errors and irregularities. Views of responsible officials and planned corrective actions: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical
Finding 2023-001
Segregation of Duties Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: There is not an ideal segregation of duties among personnel involved in the accounting function. A lack of proper segregation of duties could allow errors or irregularities to occur and go undetected. This condition is inherent in operations which, for sound economic conditions, must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Criteria or specific requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, if possible. Cause: For sound economic reasons, the Project and the management company must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Effect: A lack of segregation of duties increases the risk that errors or fraud may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes, Prior year finding 2022-001 Recommendation: When this condition exists, management's and the board's close supervision and review of accounting information is the best means of preventing or detecting errors and irregularities. Views of responsible officials and planned corrective actions: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical
Finding 2023-001
Segregation of Duties Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: There is not an ideal segregation of duties among personnel involved in the accounting function. A lack of proper segregation of duties could allow errors or irregularities to occur and go undetected. This condition is inherent in operations which, for sound economic conditions, must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Criteria or specific requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, if possible. Cause: For sound economic reasons, the Project and the management company must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Effect: A lack of segregation of duties increases the risk that errors or fraud may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes, Prior year finding 2022-001 Recommendation: When this condition exists, management's and the board's close supervision and review of accounting information is the best means of preventing or detecting errors and irregularities. Views of responsible officials and planned corrective actions: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical