Audit 32651

FY End
2022-12-31
Total Expended
$8.87M
Findings
2
Programs
1
Year: 2022 Accepted: 2023-09-21
Auditor: Rubin Brown

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
37801 2022-001 Significant Deficiency - EM
614243 2022-001 Significant Deficiency - EM

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $8.87M Yes 1

Contacts

Name Title Type
RJUFBYNXQKH4 Charty Cage Auditee
7029902356 Christy Banton Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Coordinated Living of Southern Nevada (the Organization) is a nonprofit organization organized under the laws of the State of Nevada to promote and provide affordable housing for low income and senior persons of southern Nevada and the remainder of the State of Nevada where no adequate housing exists for such groups and to provide services specially designed to meet their needs. The accompanying schedule of expenditures of federal awards includes the federal program activities of the Organization 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements and it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. Pass-through entity identifying numbers are presented where available. The accompanying Schedule is presented using the accrual basis of accounting, which is described in Note 2 to the financial statements of Coordinated Living of Southern Nevada, Inc. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization did not charge any indirect costs to the program during the year ended December 31, 2022. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 8869144. The basis used to determine notes outstanding is 1) the amount of proceeds received during the fiscal year plus 2) the balance of notes from previous years for which the federal government imposes continuing compliance requirements plus 3) any interest subsidy, cash or administrative cost allowance received. The Organization has signed promissory note agreements with the grantors, which require repayment upon the earlier of the maturity date stated in the note agreement or upon request of the grantor if the respective asset is converted to non-qualified HOME Investment Partnership Program activity. The notes are secured by a deed of trust and assignment of rents on the rental property for which the funds were used for construction. The balances of notes outstanding as of December 31, 2022 equaled the amount of federal expenditures of loan programs for the year ended December 31, 2022 and totaled $8,869,144.
Title: Subrecipients Accounting Policies: Coordinated Living of Southern Nevada (the Organization) is a nonprofit organization organized under the laws of the State of Nevada to promote and provide affordable housing for low income and senior persons of southern Nevada and the remainder of the State of Nevada where no adequate housing exists for such groups and to provide services specially designed to meet their needs. The accompanying schedule of expenditures of federal awards includes the federal program activities of the Organization 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements and it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. Pass-through entity identifying numbers are presented where available. The accompanying Schedule is presented using the accrual basis of accounting, which is described in Note 2 to the financial statements of Coordinated Living of Southern Nevada, Inc. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization did not charge any indirect costs to the program during the year ended December 31, 2022. No new federal awards were provided to subrecipients by the Organization during the year ended December 31, 2022. Total notes outstanding for previously provided awards as of December 31, 2022 totals $8,869,144. See Notes to the SEFA for chart/table.

Finding Details

Significant Deficiency 2022-001 Beneficiary Reporting (Internal Control) Condition: The Organization?s internal control procedures did not include reviewing the HOME Program Housing Beneficiary Reports for accuracy prior to submission to the applicable oversite agency. Criteria: The Organization is required to submit HOME Program Housing Beneficiary Reports in connection with the HOME funds it has received based on tenant income certifications. Cause: The Organization hired a third party vendor to prepare the reports but did not have a review process to ensure the information in the report was correct. Effect: There were errors in the reports filed with Clark County and the City of Las Vegas due to incorrect tenant income certifications being utilized to complete the reports. We noted four errors of the amount of rent reported and two errors of the unit type reported. We selected 28 reports for testing from the population of 138, which is not a statistically valid selection. None of the errors resulted in the units not meeting the affordability requirements or any other federally reported requirement. Questioned Costs: None Repeat Finding: The finding was not a repeat of a prior year finding. Auditor?s Recommendation: We recommend that a responsible employee review and all HOME Program Housing Beneficiary Reports for accuracy prior to their submission to the applicable oversite agency. The review should be documented. Views Of Responsible Officials And Planned Corrective Actions: Management agrees with the auditor?s recommendation. The director of Low-Income Housing Tax Credit and Compliance will review and approve all of the HOME Program Housing Beneficiary Reports prior to them being submitted to Clark County or the City of Las Vegas.
Significant Deficiency 2022-001 Beneficiary Reporting (Internal Control) Condition: The Organization?s internal control procedures did not include reviewing the HOME Program Housing Beneficiary Reports for accuracy prior to submission to the applicable oversite agency. Criteria: The Organization is required to submit HOME Program Housing Beneficiary Reports in connection with the HOME funds it has received based on tenant income certifications. Cause: The Organization hired a third party vendor to prepare the reports but did not have a review process to ensure the information in the report was correct. Effect: There were errors in the reports filed with Clark County and the City of Las Vegas due to incorrect tenant income certifications being utilized to complete the reports. We noted four errors of the amount of rent reported and two errors of the unit type reported. We selected 28 reports for testing from the population of 138, which is not a statistically valid selection. None of the errors resulted in the units not meeting the affordability requirements or any other federally reported requirement. Questioned Costs: None Repeat Finding: The finding was not a repeat of a prior year finding. Auditor?s Recommendation: We recommend that a responsible employee review and all HOME Program Housing Beneficiary Reports for accuracy prior to their submission to the applicable oversite agency. The review should be documented. Views Of Responsible Officials And Planned Corrective Actions: Management agrees with the auditor?s recommendation. The director of Low-Income Housing Tax Credit and Compliance will review and approve all of the HOME Program Housing Beneficiary Reports prior to them being submitted to Clark County or the City of Las Vegas.