Audit 308217

FY End
2023-12-31
Total Expended
$15.07M
Findings
4
Programs
7
Organization: Cinnaire Solutions Corporation (MI)
Year: 2023 Accepted: 2024-06-06

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
400111 2023-001 Significant Deficiency - N
400112 2023-001 Significant Deficiency - N
976553 2023-001 Significant Deficiency - N
976554 2023-001 Significant Deficiency - N

Contacts

Name Title Type
DVRPTYR4MKX6 Nathan Woltjer Auditee
5173648958 James Wolf Auditor
No contacts on file

Notes to SEFA

Title: Note 3 Accounting Policies: The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Corporation elected to not use the 10% de minimis cost rate. See the Schedule of Expenditures of Federal Awards for loan balances as of December 31, 2023.

Finding Details

Finding reference number: 2023-001 Auditor non-compliance code: Special Test and Provisions Universe population size: The universe population size is not applicable to the finding. Sample size population: The universe population size is not applicable to the finding. Noncompliance information: See statement of condition #2023-001 for noncompliance information. Statement of condition #2023-001: Darlington Farmworkers Townhomes, L.P. did not make all of the required deposits to the reserve for replacements account per the 2023 RD approved budget for the year ended December 31, 2023. At December 31, 2023, the reserve for replacements is underfunded by $8,484. Criteria: Per the 2023 RD approved budget, Darlington Farmworkers Townhomes, L.P. was required to make monthly deposits to the reserve for replacements account in an amount determined by RD beginning after construction is complete through the end of the fiscal year ended December 31, 2023. Effect: Darlington Farmworkers Townhomes, L.P. did not make deposits in line with the 2023 RD approved budget and deposits to the reserve for replacements account of $8,484 were not made for the year ended December 31, 2023. Cause: Darlington Farmworkers Townhomes, L.P. made deposits based on the monthly requirements, per the loan agreement, rather than the increased deposits required by RD, per the approved budget, for the initial year following construction. Recommendation: Management should deposit $8,484 into the reserve for replacements account. Reporting views of the responsible officials: Management agrees with the recommendation. In March 2024, management made a deposit into the reserve account to fully resolve the discrepancy.
Finding reference number: 2023-001 Auditor non-compliance code: Special Test and Provisions Universe population size: The universe population size is not applicable to the finding. Sample size population: The universe population size is not applicable to the finding. Noncompliance information: See statement of condition #2023-001 for noncompliance information. Statement of condition #2023-001: Darlington Farmworkers Townhomes, L.P. did not make all of the required deposits to the reserve for replacements account per the 2023 RD approved budget for the year ended December 31, 2023. At December 31, 2023, the reserve for replacements is underfunded by $8,484. Criteria: Per the 2023 RD approved budget, Darlington Farmworkers Townhomes, L.P. was required to make monthly deposits to the reserve for replacements account in an amount determined by RD beginning after construction is complete through the end of the fiscal year ended December 31, 2023. Effect: Darlington Farmworkers Townhomes, L.P. did not make deposits in line with the 2023 RD approved budget and deposits to the reserve for replacements account of $8,484 were not made for the year ended December 31, 2023. Cause: Darlington Farmworkers Townhomes, L.P. made deposits based on the monthly requirements, per the loan agreement, rather than the increased deposits required by RD, per the approved budget, for the initial year following construction. Recommendation: Management should deposit $8,484 into the reserve for replacements account. Reporting views of the responsible officials: Management agrees with the recommendation. In March 2024, management made a deposit into the reserve account to fully resolve the discrepancy.
Finding reference number: 2023-001 Auditor non-compliance code: Special Test and Provisions Universe population size: The universe population size is not applicable to the finding. Sample size population: The universe population size is not applicable to the finding. Noncompliance information: See statement of condition #2023-001 for noncompliance information. Statement of condition #2023-001: Darlington Farmworkers Townhomes, L.P. did not make all of the required deposits to the reserve for replacements account per the 2023 RD approved budget for the year ended December 31, 2023. At December 31, 2023, the reserve for replacements is underfunded by $8,484. Criteria: Per the 2023 RD approved budget, Darlington Farmworkers Townhomes, L.P. was required to make monthly deposits to the reserve for replacements account in an amount determined by RD beginning after construction is complete through the end of the fiscal year ended December 31, 2023. Effect: Darlington Farmworkers Townhomes, L.P. did not make deposits in line with the 2023 RD approved budget and deposits to the reserve for replacements account of $8,484 were not made for the year ended December 31, 2023. Cause: Darlington Farmworkers Townhomes, L.P. made deposits based on the monthly requirements, per the loan agreement, rather than the increased deposits required by RD, per the approved budget, for the initial year following construction. Recommendation: Management should deposit $8,484 into the reserve for replacements account. Reporting views of the responsible officials: Management agrees with the recommendation. In March 2024, management made a deposit into the reserve account to fully resolve the discrepancy.
Finding reference number: 2023-001 Auditor non-compliance code: Special Test and Provisions Universe population size: The universe population size is not applicable to the finding. Sample size population: The universe population size is not applicable to the finding. Noncompliance information: See statement of condition #2023-001 for noncompliance information. Statement of condition #2023-001: Darlington Farmworkers Townhomes, L.P. did not make all of the required deposits to the reserve for replacements account per the 2023 RD approved budget for the year ended December 31, 2023. At December 31, 2023, the reserve for replacements is underfunded by $8,484. Criteria: Per the 2023 RD approved budget, Darlington Farmworkers Townhomes, L.P. was required to make monthly deposits to the reserve for replacements account in an amount determined by RD beginning after construction is complete through the end of the fiscal year ended December 31, 2023. Effect: Darlington Farmworkers Townhomes, L.P. did not make deposits in line with the 2023 RD approved budget and deposits to the reserve for replacements account of $8,484 were not made for the year ended December 31, 2023. Cause: Darlington Farmworkers Townhomes, L.P. made deposits based on the monthly requirements, per the loan agreement, rather than the increased deposits required by RD, per the approved budget, for the initial year following construction. Recommendation: Management should deposit $8,484 into the reserve for replacements account. Reporting views of the responsible officials: Management agrees with the recommendation. In March 2024, management made a deposit into the reserve account to fully resolve the discrepancy.