FAC Explorer

Audit 321420

FY End
2023-12-31
Total Expended
$2.78M
Findings
2
Programs
1
Organization: White River Housing Association (WA)
Year: 2023 Accepted: 2024-09-26
Auditor: Loveridge Hunt & CO PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498739 2023-001 Significant Deficiency - A
1075181 2023-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.78M Yes 1

Contacts

Name Title Type
MCTMHR5Q2PL9 Ann Trullinger Auditee
3608290234 Hani Morcos Auditor
No contacts on file

Notes to SEFA

Title: Capital Advance Accounting Policies: BASIS OF PRESENTATION - The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of White River Housing Association (the Organization) under programs of federal government for the year ended December 31, 2023. 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 operation of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the OMB Circular A-122 and Uniform Guidance. The Organization did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Capital Advance - At December 31, 2023, White River Housing Association had the following Section 202 capital advance which is presented within the net assets with donor restrictions. Program or Cluster Title : Supportive Housing for the Elderly (Section 202); Assistance Listing Number : 14.157; Amount Outstanding : $2,737,700.

Finding Details

Finding 2023-001
Finding Reference Number: 2023-001; Title and CFDA Number of Federal Program: 14.157 Supportive Housing for the Elderly (Section 202); Type of Finding: Federal Award Finding;Finding Resolution Status: In process; Information on Universe and Population Size: 2 Replacement reserve withdrawals; Sample Size Information: 2 reserve withdrawals; Identification of Repeat Finding and Finding Reference Number: Not a repeat finding; Criteria: In accordance with Tile 24 CFR § 981.405 and 891.605 All disbursements from the reserve must be approved by HUD.; Statement of Condition: During our review of replacement reserve withdrawals we noted one withdrawal occurred which did not receive proper approval from HUD.; Cause: The management company failed to receive proper approval from HUD for one withdrawal during the year. A portion of the funds, totaling $10,000, previously considered as part of the operating reserve were released to the replacement reserve account in April 2, 2019, as approved by HUD. The management company withdrew $10,500 from the account during 2023 without obtaining HUD approval, $500 of the withdrawal is not restricted.; Effect or Potential Effect and Perspective: The replacement reserve was underfunded by $10,000 as of December 31, 2023.; Auditor Non-Compliance Code: A - Unauthorized withdrawals from replacement reserve account; Questioned Costs: No questioned costs.; Reporting Views of Responsible Officials: Management agreed with the finding and has implemented a corrective action plan.; Please identify the property(s) and associated questioned costs this finding applies to: White River Senior Housing; FHA/Contract Number: 127-EE055; Context: Based on the review replacement reserve documentation, management did not obtain HUD approval as part of the reserve withdrawal process for all withdrawals.; Recommendation: We encourage management to transfer the unapproved withdrawal totaling $10,000 back to the replacement reserve and transfer the remaining bank account balance, previously considered the operating reserve to the replacement reserve account and ensure the fund restriction is clear and that no replacement reserve funds are withdrawn without HUD approval.; Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management agrees with the auditor.; Response Indicator: Agree; Response: Management agreed with the finding and has implemented a corrective action plan.
Finding 2023-001
Finding Reference Number: 2023-001; Title and CFDA Number of Federal Program: 14.157 Supportive Housing for the Elderly (Section 202); Type of Finding: Federal Award Finding;Finding Resolution Status: In process; Information on Universe and Population Size: 2 Replacement reserve withdrawals; Sample Size Information: 2 reserve withdrawals; Identification of Repeat Finding and Finding Reference Number: Not a repeat finding; Criteria: In accordance with Tile 24 CFR § 981.405 and 891.605 All disbursements from the reserve must be approved by HUD.; Statement of Condition: During our review of replacement reserve withdrawals we noted one withdrawal occurred which did not receive proper approval from HUD.; Cause: The management company failed to receive proper approval from HUD for one withdrawal during the year. A portion of the funds, totaling $10,000, previously considered as part of the operating reserve were released to the replacement reserve account in April 2, 2019, as approved by HUD. The management company withdrew $10,500 from the account during 2023 without obtaining HUD approval, $500 of the withdrawal is not restricted.; Effect or Potential Effect and Perspective: The replacement reserve was underfunded by $10,000 as of December 31, 2023.; Auditor Non-Compliance Code: A - Unauthorized withdrawals from replacement reserve account; Questioned Costs: No questioned costs.; Reporting Views of Responsible Officials: Management agreed with the finding and has implemented a corrective action plan.; Please identify the property(s) and associated questioned costs this finding applies to: White River Senior Housing; FHA/Contract Number: 127-EE055; Context: Based on the review replacement reserve documentation, management did not obtain HUD approval as part of the reserve withdrawal process for all withdrawals.; Recommendation: We encourage management to transfer the unapproved withdrawal totaling $10,000 back to the replacement reserve and transfer the remaining bank account balance, previously considered the operating reserve to the replacement reserve account and ensure the fund restriction is clear and that no replacement reserve funds are withdrawn without HUD approval.; Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management agrees with the auditor.; Response Indicator: Agree; Response: Management agreed with the finding and has implemented a corrective action plan.