Finding 2022-001 Criteria: Generally, a system of internal control contemplates segregation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transactions. Condition: Due to the limited size of the Cooperative?s business staff, the Cooperative has limited segregation of duties. Questioned Costs: None. Context: The Cooperative has informed us that the small size of its business office staff precludes proper segregation of duties at this time. Effect: The Cooperative is unable to maintain segregation of incompatible duties. Cause: Limited number of staff in the business office. Repeat Finding: N/A. Recommendation: We recommend that the Cooperative continue to segregate incompatible duties as best it can within the limits of what the Cooperative considers to be cost beneficial. Current Status: Unresolved, the Cooperative still has a limited number of staff in the business office. Action Taken: The Cooperative reviews and makes improvements to its internal controls on an ongoing basis and attempts to maximize the segregation of duties in all areas within the limits of the staff available. Views of Responsible Officials and Planned Corrective Actions: The Cooperative agrees with this finding and will adhere to the corrective action plan on pages 31-32 in this audit report.
Finding 2022-002 Criteria: Generally, a system of internal control includes the ability to understand and prepare the Cooperative?s financial statements and related disclosures in accordance with accounting principles generally accepted in the United States of America (GAAP). Condition: Due to the limited size of the Cooperative?s business staff and related resources available, the Cooperative has utilized the auditor to post adjusting journal entries and prepare the financial statements and related disclosures in accordance with accounting principles generally accepted in the United States of America. Questioned Costs: None. Context: The Cooperative has informed us that the small size and qualifications of its business office staff precludes the Cooperative from posting adjusting journal entries and preparing its own financial statements. Effect: The Cooperative is unable to prepare GAAP based financial statements. Cause: Limited number of staff and hours available preclude the Cooperative from preparing the GAAP based financial statements. The Cooperative will continue to review auditor prepared financial statements. Repeat Finding: N/A. Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Current Status: Unresolved, the number of staff and qualifications of staff have not changed. The Cooperative is continuing to review the auditor prepared adjusting journal entries and financial statements. Action Taken: The Cooperative will continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Views of Responsible Officials and Planned Corrective Actions: The Cooperative agrees with this finding and will adhere to the corrective action plan on pages 31-32 in this audit report.
Finding 2022-003 Criteria: A control deficiency exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent or detect misstatements of the financial statements on a timely basis. A control deficiency that is typically considered significant is the identification by the auditor of a misstatement in the financial statements that was not initially identified by the Cooperative?s internal control. Condition: The Cooperative?s internal controls did not allow the prevention of misstatements when recording the necessary entries for proper financial statement presentation. Questioned Costs: None. Context: The Cooperative did not follow their internal controls in respect to reconciling procedures. Effect: The condition of this finding increases the likelihood of a lack of internal controls. Cause: The Cooperative did not properly record the necessary entries to reflect the physical transactions in the financial statements. Repeat Finding: N/A. Recommendation: We recommend that the Cooperative continue to review internal controls currently in place. Current Status: Resolved, the Cooperative took the necessary action to record the required transactions in the financial statements. Action Taken: The Cooperative took the proper action to correct the misposted transactions during on-site visit. Views of Responsible Officials and Planned Corrective Actions: The Cooperative agrees with this finding and will adhere to the corrective action plan on pages 31-32 in this audit report.
Finding 2022-004 Criteria: The Cooperative is required to annually submit an audit electronically to the Federal Audit Clearinghouse. Condition: The Cooperative has not filed annually with the Federal Audit Clearinghouse. Questioned Costs: None. Context: The Cooperative did not file annually with the Federal Audit Clearinghouse. Effect: The Cooperative is out of compliance with their HUD regulatory agreement. Cause: The Cooperative was unaware of the need to file annually with the Federal Audit Clearinghouse. Repeat Finding: N/A. Recommendation: We recommend that the Cooperative file annually with the Federal Audit Clearinghouse. Current Status: Resolved, the Cooperative has filed this annual report with the Federal Audit Clearinghouse. Action Taken: The Cooperative will file annually with the Federal Audit Clearinghouse. Views of Responsible Officials and Planned Corrective Actions: The Cooperative agrees with this finding and will adhere to the corrective action plan on pages 31-32 in this audit report.
Finding 2022-005 Criteria: The Cooperative is required to annually submit an audit electronically to the U.S. Department of Housing and Urban Development, Real Estate Assessment Center. Condition: The Cooperative has not filed annually with the U.S. Department of Housing and Urban Development, Real Estate Assessment Center. Questioned Costs: None. Context: The Cooperative did not file annually with the U.S. Department of Housing and Urban Development, Real Estate Assessment Center. Effect: The Cooperative is out of compliance with their HUD regulatory agreement. Cause: The Cooperative was unaware of the need to file annually with the U.S. Department of Housing and Urban Development, Real Estate Assessment Center. Repeat Finding: N/A. Recommendation: We recommend that the Cooperative file annually with the U.S. Department of Housing and Urban Development, Real Estate Assessment Center. Current Status: Resolved, the Cooperative has filed this annual report with the U.S. Department of Housing and Urban Development, Real Estate Assessment Center. Action Taken: The Cooperative will file annually with the U.S. Department of Housing and Urban Development, Real Estate Assessment Center. Views of Responsible Officials and Planned Corrective Actions: The Cooperative agrees with this finding and will adhere to the corrective action plan on pages 31-32 in this audit report.
Finding 2022-001 Criteria: Generally, a system of internal control contemplates segregation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transactions. Condition: Due to the limited size of the Cooperative?s business staff, the Cooperative has limited segregation of duties. Questioned Costs: None. Context: The Cooperative has informed us that the small size of its business office staff precludes proper segregation of duties at this time. Effect: The Cooperative is unable to maintain segregation of incompatible duties. Cause: Limited number of staff in the business office. Repeat Finding: N/A. Recommendation: We recommend that the Cooperative continue to segregate incompatible duties as best it can within the limits of what the Cooperative considers to be cost beneficial. Current Status: Unresolved, the Cooperative still has a limited number of staff in the business office. Action Taken: The Cooperative reviews and makes improvements to its internal controls on an ongoing basis and attempts to maximize the segregation of duties in all areas within the limits of the staff available. Views of Responsible Officials and Planned Corrective Actions: The Cooperative agrees with this finding and will adhere to the corrective action plan on pages 31-32 in this audit report.
Finding 2022-002 Criteria: Generally, a system of internal control includes the ability to understand and prepare the Cooperative?s financial statements and related disclosures in accordance with accounting principles generally accepted in the United States of America (GAAP). Condition: Due to the limited size of the Cooperative?s business staff and related resources available, the Cooperative has utilized the auditor to post adjusting journal entries and prepare the financial statements and related disclosures in accordance with accounting principles generally accepted in the United States of America. Questioned Costs: None. Context: The Cooperative has informed us that the small size and qualifications of its business office staff precludes the Cooperative from posting adjusting journal entries and preparing its own financial statements. Effect: The Cooperative is unable to prepare GAAP based financial statements. Cause: Limited number of staff and hours available preclude the Cooperative from preparing the GAAP based financial statements. The Cooperative will continue to review auditor prepared financial statements. Repeat Finding: N/A. Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Current Status: Unresolved, the number of staff and qualifications of staff have not changed. The Cooperative is continuing to review the auditor prepared adjusting journal entries and financial statements. Action Taken: The Cooperative will continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Views of Responsible Officials and Planned Corrective Actions: The Cooperative agrees with this finding and will adhere to the corrective action plan on pages 31-32 in this audit report.
Finding 2022-003 Criteria: A control deficiency exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent or detect misstatements of the financial statements on a timely basis. A control deficiency that is typically considered significant is the identification by the auditor of a misstatement in the financial statements that was not initially identified by the Cooperative?s internal control. Condition: The Cooperative?s internal controls did not allow the prevention of misstatements when recording the necessary entries for proper financial statement presentation. Questioned Costs: None. Context: The Cooperative did not follow their internal controls in respect to reconciling procedures. Effect: The condition of this finding increases the likelihood of a lack of internal controls. Cause: The Cooperative did not properly record the necessary entries to reflect the physical transactions in the financial statements. Repeat Finding: N/A. Recommendation: We recommend that the Cooperative continue to review internal controls currently in place. Current Status: Resolved, the Cooperative took the necessary action to record the required transactions in the financial statements. Action Taken: The Cooperative took the proper action to correct the misposted transactions during on-site visit. Views of Responsible Officials and Planned Corrective Actions: The Cooperative agrees with this finding and will adhere to the corrective action plan on pages 31-32 in this audit report.
Finding 2022-004 Criteria: The Cooperative is required to annually submit an audit electronically to the Federal Audit Clearinghouse. Condition: The Cooperative has not filed annually with the Federal Audit Clearinghouse. Questioned Costs: None. Context: The Cooperative did not file annually with the Federal Audit Clearinghouse. Effect: The Cooperative is out of compliance with their HUD regulatory agreement. Cause: The Cooperative was unaware of the need to file annually with the Federal Audit Clearinghouse. Repeat Finding: N/A. Recommendation: We recommend that the Cooperative file annually with the Federal Audit Clearinghouse. Current Status: Resolved, the Cooperative has filed this annual report with the Federal Audit Clearinghouse. Action Taken: The Cooperative will file annually with the Federal Audit Clearinghouse. Views of Responsible Officials and Planned Corrective Actions: The Cooperative agrees with this finding and will adhere to the corrective action plan on pages 31-32 in this audit report.
Finding 2022-005 Criteria: The Cooperative is required to annually submit an audit electronically to the U.S. Department of Housing and Urban Development, Real Estate Assessment Center. Condition: The Cooperative has not filed annually with the U.S. Department of Housing and Urban Development, Real Estate Assessment Center. Questioned Costs: None. Context: The Cooperative did not file annually with the U.S. Department of Housing and Urban Development, Real Estate Assessment Center. Effect: The Cooperative is out of compliance with their HUD regulatory agreement. Cause: The Cooperative was unaware of the need to file annually with the U.S. Department of Housing and Urban Development, Real Estate Assessment Center. Repeat Finding: N/A. Recommendation: We recommend that the Cooperative file annually with the U.S. Department of Housing and Urban Development, Real Estate Assessment Center. Current Status: Resolved, the Cooperative has filed this annual report with the U.S. Department of Housing and Urban Development, Real Estate Assessment Center. Action Taken: The Cooperative will file annually with the U.S. Department of Housing and Urban Development, Real Estate Assessment Center. Views of Responsible Officials and Planned Corrective Actions: The Cooperative agrees with this finding and will adhere to the corrective action plan on pages 31-32 in this audit report.