Audit 316972

FY End
2022-09-30
Total Expended
$10.87M
Findings
2
Programs
1
Year: 2022 Accepted: 2024-08-09
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
480842 2022-002 Material Weakness Yes B
1057284 2022-002 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $10.87M Yes 1

Contacts

Name Title Type
EX7HKKJPBA17 Christopher Cirillo Auditee
2124103153 Jason Rocker Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures report on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principlbes contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations, and the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Casita Park Housing Development Fund Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of Casita Park Housing Development Fund Corporation, HUD Project No.: 012- EE191, under programs of the federal government for the year ended September 30, 2022. 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 Casita Park Housing Development Fund Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Casita Park Housing Development Fund Corporation.
Title: Summary of significant accounting policies Accounting Policies: Expenditures report on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principlbes contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations, and the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Casita Park Housing Development Fund Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations, and the cost principles contained in the Uniform Guidance. Casita Park Housing Development Fund Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: U.S. Department of Housing and Urban Development loan program Accounting Policies: Expenditures report on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principlbes contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations, and the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Casita Park Housing Development Fund Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Casita Park Housing Development Fund Corporation has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Casita Park Housing Development Fund Corporation received no additional loans during the year. The balance of the loan outstanding at September 30, 2022 consists of: Assistance Listing Number Program Name Outstanding Balance at September 30, 2022 14.157 Supportive Housing fore Elderly $10,056,299

Finding Details

Finding No. 2022-002; Unauthorized loans from project assets Statement of Condition During the year ended September 30, 2022, the project paid expenses in the amount of $81,886 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of September 30, 2022 is $81,886. Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Effect or Potential Effect The payments of $81,886 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $ 81,886. Recommendation Management should immediately reimburse the amount due to the project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code B - Allowable Cost/Costs Principles Reporting Views of Responsible Officials The Corporation agrees with the finding and the auditor's recommendations have been adopted. Upon finalizing the audits and submitting to HUD, management intends to request funds from the replacement reserve to enable them to pay down the due from affiliates.
Finding No. 2022-002; Unauthorized loans from project assets Statement of Condition During the year ended September 30, 2022, the project paid expenses in the amount of $81,886 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of September 30, 2022 is $81,886. Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Effect or Potential Effect The payments of $81,886 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $ 81,886. Recommendation Management should immediately reimburse the amount due to the project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code B - Allowable Cost/Costs Principles Reporting Views of Responsible Officials The Corporation agrees with the finding and the auditor's recommendations have been adopted. Upon finalizing the audits and submitting to HUD, management intends to request funds from the replacement reserve to enable them to pay down the due from affiliates.