FAC Explorer

Audit 316153

FY End
2024-03-31
Total Expended
$2.76M
Findings
2
Programs
1
Organization: Crf Xii, Inc. Dba Prov. Place of Bloomington Apartments (IN)
Year: 2024 Accepted: 2024-07-29
Auditor: Mayer Hoffman McCann PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
479598 2024-001 - Yes B
1056040 2024-001 - Yes B

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.76M Yes 1

Contacts

Name Title Type
LDCUZHM6E4W3 David Cooper Auditee
3175542100 Bruce W. Merrill Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: 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). De Minimis Rate Used: N Rate Explanation: Community Reinvestment Foundation - XII, Inc. d/b/a Providence Place of Bloomington Apartments has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Community Reinvestment Foundation - XII, Inc. d/b/a Providence Place of Bloomington Apartments and is presented on the accrual basis of accounting. 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 Community Reinvestment Foundation - XII, Inc. d/b/a Providence Place of Bloomington Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Community Reinvestment Foundation - XII, Inc. d/b/a Providence Place of Bloomington Apartments.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: 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). De Minimis Rate Used: N Rate Explanation: Community Reinvestment Foundation - XII, Inc. d/b/a Providence Place of Bloomington Apartments has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule 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. Community Reinvestment Foundation - XII, Inc. d/b/a Providence Place of Bloomington Apartments has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 3 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: 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). De Minimis Rate Used: N Rate Explanation: Community Reinvestment Foundation - XII, Inc. d/b/a Providence Place of Bloomington Apartments has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Community Reinvestment Foundation - XII, Inc. d/b/a Providence Place of Bloomington Apartments has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Community Reinvestment Foundation - XII, Inc. d/b/a Providence Place of Bloomington Apartments received no additional loans or advances during the year. The balance of the capital advance outstanding consists of $2,607,800.

Finding Details

Finding 2024-001
Criteria: Pursuant to the Regulatory Agreement, any residual receipts realized from the operation of the Project shall be deposited into a separate residual receipts account within 90 days after year end. Statement of Condition: Residual receipts in the amount of $13,031 as of March 31, 2024, was not deposited into a separate residual receipts account within 90 days after year end. Cause: The Company had cash flow shortfalls after paying other operating expenses. Effect: The Company was not in compliance with the Regulatory Agreement relative to the required residual receipts deposits. Context: This was not a sampling audit procedure. Amount of Questioned Costs $0 Recommendation: Make the deposit to the residual receipts account as required and ensure that all future residual receipts amounts are deposited within 90 days after year end. Auditors’ Non-Compliance code: B - Owners must deposit residual receipts into a separate account within 90 days after year end. Reporting Views of Responsible Officials: The Company could not make the residual receipt deposit due to cash shortfalls. Auditors’ Summary of Auditee’s Comments on the Findings and Recommendations: Auditee agrees with auditors’ findings. Response Indicator Accepted Completion Date Open Response: Management will make the required residual receipts deposit as soon as available cash flow allows. Contact Person David Cooper
Finding 2024-001
Criteria: Pursuant to the Regulatory Agreement, any residual receipts realized from the operation of the Project shall be deposited into a separate residual receipts account within 90 days after year end. Statement of Condition: Residual receipts in the amount of $13,031 as of March 31, 2024, was not deposited into a separate residual receipts account within 90 days after year end. Cause: The Company had cash flow shortfalls after paying other operating expenses. Effect: The Company was not in compliance with the Regulatory Agreement relative to the required residual receipts deposits. Context: This was not a sampling audit procedure. Amount of Questioned Costs $0 Recommendation: Make the deposit to the residual receipts account as required and ensure that all future residual receipts amounts are deposited within 90 days after year end. Auditors’ Non-Compliance code: B - Owners must deposit residual receipts into a separate account within 90 days after year end. Reporting Views of Responsible Officials: The Company could not make the residual receipt deposit due to cash shortfalls. Auditors’ Summary of Auditee’s Comments on the Findings and Recommendations: Auditee agrees with auditors’ findings. Response Indicator Accepted Completion Date Open Response: Management will make the required residual receipts deposit as soon as available cash flow allows. Contact Person David Cooper