FAC Explorer

Audit 326142

FY End
2024-06-30
Total Expended
$2.58M
Findings
4
Programs
2
Organization: Chehalem Valley Housing Corporation (OR)
Year: 2024 Accepted: 2024-10-28
Auditor: Platform CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
503845 2024-001 - - N
503846 2024-002 - - N
1080287 2024-001 - - N
1080288 2024-002 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.68M Yes 2
14.239 Home Investment Partnerships Program $895,782 - 0

Contacts

Name Title Type
KRYEZQMLA2C9 Kathy Schlotfeldt Auditee
5036872507 Misol Kim Auditor
No contacts on file

Notes to SEFA

Title: 1 BASIS OF PRESENTATION Accounting Policies: 2. 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Company has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: See "Summary of Significant Accouning Policies" note above The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Chehalem Valley Housing Corporation – Springbrook Place (the “Company”) 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Company, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company.
Title: 3 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: 2. 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Company has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: See "Summary of Significant Accouning Policies" note above The Company has received a loan funded by programs of U.S. Department of Housing and Urban Development. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Such balance has been included as net assets with donor restrictions in the financial statements of the Company as of June 30, 2024 since the likelihood of repayment is remote. The Company received no additional loans during the year ended June 30, 2024. The balance of the loan outstanding at June 30, 2024 consists of: CFDA Number Program Name Outstanding Balance 14.181 Supportive Housing for Persons with Disabilities (Section 811) $1,637,500

Finding Details

Finding 2024-001
Finding No. - 2024-001 - CFDA 14.181 - Supportive Housing for Persons with Disabilities (Section 811) Type of Finding – Federal Award Finding Finding Resolution Status – In process Criteria – Under the terms of the Regulatory Agreement with HUD, the Project is required to make monthly deposits to the replacement reserve account. The required monthly deposit amount was $580 per month through January 2024 and increased to $612 per month beginning February 2024. Statement of Condition – The Project did not make the monthly deposits of $612 from April through June 2024. The total delinquent deposit amount at June 30, 2024 was $1,836. Cause – The delinquent deposits to the replacement reserve at June 30, 2024 were due to cash flow shortage. Effect or Potential Effect – The Project was not in compliance with the terms of the Regulatory Agreement with HUD. Auditor Non-Compliance Code – N – Reserve for replacement deposits. Questioned Costs – $1,836 Reporting Views of Responsible Officials – The Project was not able to make the monthly deposits during the three months of April through June 2024 due to the cash flow shortage. Recommendation – We recommend the Project catch up on the delinquent deposits as soon as operating cash is available. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations – We agree with auditee’s response. Response Indicator – Agree Completion Date – December 31, 2024 Response – The Project will make catch-up deposits when operating cash is available.
Finding 2024-002
Finding No. - 2024-002 - CFDA 14.181 - Supportive Housing for Persons with Disabilities (Section 811) Type of Finding – Federal Award Finding Finding Resolution Status – In process Criteria – Project funds must be used for the operation of the project (including required insurance coverage) and to make required deposits to the replacement reserve and residual receipts account. Statement of Condition – During the year ended June 30, 2024, the Project was advanced $4,000 from the organizing sponsor to be used to pay operating expenses of the Project. The advance is payable in four installments of $1,000. During the year ended June 30, 2024, the Project made two of the four installment payments to the organizing sponsor. Such repayments were made without HUD approval in advance. Cause – Such advance was necessary as the Project experienced a cash flow shortage during the year. However, it was an oversight of management that the repayments were made without HUD approval in advance. Effect or Potential Effect – The Project was not in compliance with the terms of the Regulatory Agreement with HUD. Auditor Non-Compliance Code – H – Unauthorized distribution of project assets. Questioned Costs – $2,000 Reporting Views of Responsible Officials – We concur with the auditor’s explanation. Recommendation – Management should ensure that any distributions of project assets are approved by HUD in advance. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations – We agree with auditee’s response. Response Indicator – Agree Completion Date – December 31, 2024 Response – Management will ensure that any distributions of project assets are approved by HUD in advance.
Finding 2024-001
Finding No. - 2024-001 - CFDA 14.181 - Supportive Housing for Persons with Disabilities (Section 811) Type of Finding – Federal Award Finding Finding Resolution Status – In process Criteria – Under the terms of the Regulatory Agreement with HUD, the Project is required to make monthly deposits to the replacement reserve account. The required monthly deposit amount was $580 per month through January 2024 and increased to $612 per month beginning February 2024. Statement of Condition – The Project did not make the monthly deposits of $612 from April through June 2024. The total delinquent deposit amount at June 30, 2024 was $1,836. Cause – The delinquent deposits to the replacement reserve at June 30, 2024 were due to cash flow shortage. Effect or Potential Effect – The Project was not in compliance with the terms of the Regulatory Agreement with HUD. Auditor Non-Compliance Code – N – Reserve for replacement deposits. Questioned Costs – $1,836 Reporting Views of Responsible Officials – The Project was not able to make the monthly deposits during the three months of April through June 2024 due to the cash flow shortage. Recommendation – We recommend the Project catch up on the delinquent deposits as soon as operating cash is available. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations – We agree with auditee’s response. Response Indicator – Agree Completion Date – December 31, 2024 Response – The Project will make catch-up deposits when operating cash is available.
Finding 2024-002
Finding No. - 2024-002 - CFDA 14.181 - Supportive Housing for Persons with Disabilities (Section 811) Type of Finding – Federal Award Finding Finding Resolution Status – In process Criteria – Project funds must be used for the operation of the project (including required insurance coverage) and to make required deposits to the replacement reserve and residual receipts account. Statement of Condition – During the year ended June 30, 2024, the Project was advanced $4,000 from the organizing sponsor to be used to pay operating expenses of the Project. The advance is payable in four installments of $1,000. During the year ended June 30, 2024, the Project made two of the four installment payments to the organizing sponsor. Such repayments were made without HUD approval in advance. Cause – Such advance was necessary as the Project experienced a cash flow shortage during the year. However, it was an oversight of management that the repayments were made without HUD approval in advance. Effect or Potential Effect – The Project was not in compliance with the terms of the Regulatory Agreement with HUD. Auditor Non-Compliance Code – H – Unauthorized distribution of project assets. Questioned Costs – $2,000 Reporting Views of Responsible Officials – We concur with the auditor’s explanation. Recommendation – Management should ensure that any distributions of project assets are approved by HUD in advance. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations – We agree with auditee’s response. Response Indicator – Agree Completion Date – December 31, 2024 Response – Management will ensure that any distributions of project assets are approved by HUD in advance.