FAC Explorer

Audit 317340

FY End
2024-06-30
Total Expended
$1.42M
Findings
4
Programs
2
Organization: Community Workshop Residentials, INC G / Fha Project No. 072-Hd057 (IL)
Year: 2024 Accepted: 2024-08-16
Auditor: Gordon Stockman & Waugh PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
481217 2023-001 Material Weakness Yes P
481218 2023-001 Material Weakness Yes P
1057659 2023-001 Material Weakness Yes P
1057660 2023-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.195 Section 8 Housing Assistance Payments Program $1.27M Yes 1
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $148,394 Yes 1

Contacts

Name Title Type
PBPLCCS74QJ4 Jeff Cottingham Auditee
3096732252 Andrew Ryon Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized folling the cost principles containted in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: PROGRAMS ARE NOT BASED ON COST REIMBURSEMENTS. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Community Workshop Residentials, Inc. G, FHA Project No. 072-HD057, 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 Workshop Residentials, Inc. G, FHA Project No. 072-HD057, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Community Workshop Residentials, Inc. G, FHA Project No. 072-HD057.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized folling the cost principles containted in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: PROGRAMS ARE NOT BASED ON COST REIMBURSEMENTS. 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 Workshop Residentials, Inc. G, FHA Project No. 072-HD057 has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 3. Nonmonetary Assistance Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized folling the cost principles containted in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: PROGRAMS ARE NOT BASED ON COST REIMBURSEMENTS. The Project did not receive any federal awards in the form of non-cash assistance or insurance in effect during the year.
Title: Note 4. Relationships to the Financial Statements Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized folling the cost principles containted in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: PROGRAMS ARE NOT BASED ON COST REIMBURSEMENTS. The information in this Schedule is presented in accordance with the requirements of Uniform Guidance. Amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree with the amounts included in Community Workshop Residentials, Inc. G, FHA Project No. 072-HD057’s June 30, 2024 financial statements, except for the Section 811 capital advance mortgage note.

Finding Details

Finding 2023-001
Condition: There is minimal 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. Due to budgetary constraints imposed by HUD, small projects, 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: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, ifCondition: There is minimal 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. Due to budgetary constraints imposed by HUD, small projects, 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. 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. Criteria: 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 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. 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 close supervision and review of accounting information is the best means of preventing or detecting errors and irregularities. Management Response: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.
Finding 2023-001
Condition: There is minimal 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. Due to budgetary constraints imposed by HUD, small projects, 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: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, ifCondition: There is minimal 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. Due to budgetary constraints imposed by HUD, small projects, 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. 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. Criteria: 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 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. 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 close supervision and review of accounting information is the best means of preventing or detecting errors and irregularities. Management Response: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.
Finding 2023-001
Condition: There is minimal 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. Due to budgetary constraints imposed by HUD, small projects, 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: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, ifCondition: There is minimal 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. Due to budgetary constraints imposed by HUD, small projects, 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. 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. Criteria: 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 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. 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 close supervision and review of accounting information is the best means of preventing or detecting errors and irregularities. Management Response: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.
Finding 2023-001
Condition: There is minimal 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. Due to budgetary constraints imposed by HUD, small projects, 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: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, ifCondition: There is minimal 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. Due to budgetary constraints imposed by HUD, small projects, 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. 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. Criteria: 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 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. 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 close supervision and review of accounting information is the best means of preventing or detecting errors and irregularities. Management Response: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.