FAC Explorer

Audit 334644

FY End
2024-06-30
Total Expended
$21.25M
Findings
6
Programs
6
Organization: Central Oregon Regional Housing Authority (OR)
Year: 2024 Accepted: 2024-12-23
Auditor: Loveridge Hunt & CO PLLC CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
516661 2024-001 - Yes I
516662 2024-002 Material Weakness - L
516663 2024-002 Material Weakness - L
1093103 2024-001 - Yes I
1093104 2024-002 Material Weakness - L
1093105 2024-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.60M Yes 1
14.871 Section 8 Housing Choice Vouchers $1.52M - 0
10.405 Farm Labor Housing Loans and Grants $1.03M Yes 1
14.879 Mainstream Vouchers $626,651 - 0
10.427 Rural Rental Assistance Payments $248,265 - 0
14.896 Family Self-Sufficiency Program $181,882 - 0

Contacts

Name Title Type
XMJ8K6BJY453 Geoff Wall Auditee
5413237414 Hani Morcos Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on this schedule are reported on the modified basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments and Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the 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.
Title: FEDERAL LOANS Accounting Policies: Expenditures reported on this schedule are reported on the modified basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments and Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. At June 30, 2024, the Authority had the following loan balances outstanding. The loan balances are also included in the federal expenditures: Project/Federal Assistance Listing Number/Amount Outstanding: Canyon East/10.405/$ 292,925. Menta Park/10.405/$92,653. Menta Park/10.405/$996,466. Totaling $ 1,382,044.

Finding Details

Finding 2024-001
Assistance Listing Number/Federal Program/Granting Agency:AL # 21.027. Coronavirus State and Local Fiscal Recovery Funds, American Rescue Plan Act (ARPA) Criteria: Recipients are required to follow procurement procedures as required in the Uniform Guidance, 2 CFR 200.320. Statement of Condition: The Housing Authority did not follow sealed bid method in accordance with the procurement standards 2 CFR 200.320 of the Uniform Guidance. Questioned Costs: None. Cause: The Housing Authority executed a contract with the General Contractor and did not follow sealed bid method for procurement in accordance with the Uniform Guidance. Effect or Possible Effect and Perspective: The Housing Authority did not comply with the procurement requirement set forth in the Uniform Guidance, 2 CFR 200.320. Repeat Finding: Repeat finding. Recommendation: The Housing Authority should designate a person in the development department to verify which procurement method should be used. Views of Responsible Officials: Agree.
Finding 2024-002
Assistance Listing Number/Federal Program/Granting Agency: AL# 10.405 Farm Labor Housing Loans and Grants Criteria: Recipients are required to submit the annual proposed budget for the following year 90 days before the start date of the fiscal year. Recipients are also required to submit annual financial reports including Form RD 3560-7 with 12 months of actual income and expenses to RD no later than 90 days following the close of the project fiscal year. Statement of Condition: During our tests of compliance over the RD program, we noted the 2023-2024 RD proposed budgets for Canyon East and Menta Park were not approved by RD since they were not submitted to RD by April 1, 2023 through MINC. The Management was also unable to provide Forms 3560-7 for Canyon East and Menta Park with 12 months of actual income and expenses; therefore, we were unable to verify if the reports were submitted to RD within the required time frame. During our tests of internal control over compliance, we noted the Management did not respond to RD's annual budget reminder in a timely manner. Questioned Costs: None. Cause: The Management stated they submitted the requested 2023-2024 annual budgets, but there were issues with the utility allowances not aligning in the RD software. The Management tried to resolve the issues with RD but eventually the process stopped with no resolution. Effect or Possible Effect and Perspective: The Housing Authority did not comply with the reporting requirement set forth in the RD HB-2-3560 Chapter 4, Section 4 Budget Requirements and Chapter 4, Section 5 Annual Financial Reporting Due Dates and Agency Review of Annual Financial Reports. Repeat Finding: Not a Repeat finding. Recommendation: The Housing Authority should monitor the required RD report submission status, and maintain the documentation of the annual financial reports. Views of Responsible Officials: Agree.
Finding 2024-002
Assistance Listing Number/Federal Program/Granting Agency: AL# 10.405 Farm Labor Housing Loans and Grants Criteria: Recipients are required to submit the annual proposed budget for the following year 90 days before the start date of the fiscal year. Recipients are also required to submit annual financial reports including Form RD 3560-7 with 12 months of actual income and expenses to RD no later than 90 days following the close of the project fiscal year. Statement of Condition: During our tests of compliance over the RD program, we noted the 2023-2024 RD proposed budgets for Canyon East and Menta Park were not approved by RD since they were not submitted to RD by April 1, 2023 through MINC. The Management was also unable to provide Forms 3560-7 for Canyon East and Menta Park with 12 months of actual income and expenses; therefore, we were unable to verify if the reports were submitted to RD within the required time frame. During our tests of internal control over compliance, we noted the Management did not respond to RD's annual budget reminder in a timely manner. Questioned Costs: None. Cause: The Management stated they submitted the requested 2023-2024 annual budgets, but there were issues with the utility allowances not aligning in the RD software. The Management tried to resolve the issues with RD but eventually the process stopped with no resolution. Effect or Possible Effect and Perspective: The Housing Authority did not comply with the reporting requirement set forth in the RD HB-2-3560 Chapter 4, Section 4 Budget Requirements and Chapter 4, Section 5 Annual Financial Reporting Due Dates and Agency Review of Annual Financial Reports. Repeat Finding: Not a Repeat finding. Recommendation: The Housing Authority should monitor the required RD report submission status, and maintain the documentation of the annual financial reports. Views of Responsible Officials: Agree.
Finding 2024-001
Assistance Listing Number/Federal Program/Granting Agency:AL # 21.027. Coronavirus State and Local Fiscal Recovery Funds, American Rescue Plan Act (ARPA) Criteria: Recipients are required to follow procurement procedures as required in the Uniform Guidance, 2 CFR 200.320. Statement of Condition: The Housing Authority did not follow sealed bid method in accordance with the procurement standards 2 CFR 200.320 of the Uniform Guidance. Questioned Costs: None. Cause: The Housing Authority executed a contract with the General Contractor and did not follow sealed bid method for procurement in accordance with the Uniform Guidance. Effect or Possible Effect and Perspective: The Housing Authority did not comply with the procurement requirement set forth in the Uniform Guidance, 2 CFR 200.320. Repeat Finding: Repeat finding. Recommendation: The Housing Authority should designate a person in the development department to verify which procurement method should be used. Views of Responsible Officials: Agree.
Finding 2024-002
Assistance Listing Number/Federal Program/Granting Agency: AL# 10.405 Farm Labor Housing Loans and Grants Criteria: Recipients are required to submit the annual proposed budget for the following year 90 days before the start date of the fiscal year. Recipients are also required to submit annual financial reports including Form RD 3560-7 with 12 months of actual income and expenses to RD no later than 90 days following the close of the project fiscal year. Statement of Condition: During our tests of compliance over the RD program, we noted the 2023-2024 RD proposed budgets for Canyon East and Menta Park were not approved by RD since they were not submitted to RD by April 1, 2023 through MINC. The Management was also unable to provide Forms 3560-7 for Canyon East and Menta Park with 12 months of actual income and expenses; therefore, we were unable to verify if the reports were submitted to RD within the required time frame. During our tests of internal control over compliance, we noted the Management did not respond to RD's annual budget reminder in a timely manner. Questioned Costs: None. Cause: The Management stated they submitted the requested 2023-2024 annual budgets, but there were issues with the utility allowances not aligning in the RD software. The Management tried to resolve the issues with RD but eventually the process stopped with no resolution. Effect or Possible Effect and Perspective: The Housing Authority did not comply with the reporting requirement set forth in the RD HB-2-3560 Chapter 4, Section 4 Budget Requirements and Chapter 4, Section 5 Annual Financial Reporting Due Dates and Agency Review of Annual Financial Reports. Repeat Finding: Not a Repeat finding. Recommendation: The Housing Authority should monitor the required RD report submission status, and maintain the documentation of the annual financial reports. Views of Responsible Officials: Agree.
Finding 2024-002
Assistance Listing Number/Federal Program/Granting Agency: AL# 10.405 Farm Labor Housing Loans and Grants Criteria: Recipients are required to submit the annual proposed budget for the following year 90 days before the start date of the fiscal year. Recipients are also required to submit annual financial reports including Form RD 3560-7 with 12 months of actual income and expenses to RD no later than 90 days following the close of the project fiscal year. Statement of Condition: During our tests of compliance over the RD program, we noted the 2023-2024 RD proposed budgets for Canyon East and Menta Park were not approved by RD since they were not submitted to RD by April 1, 2023 through MINC. The Management was also unable to provide Forms 3560-7 for Canyon East and Menta Park with 12 months of actual income and expenses; therefore, we were unable to verify if the reports were submitted to RD within the required time frame. During our tests of internal control over compliance, we noted the Management did not respond to RD's annual budget reminder in a timely manner. Questioned Costs: None. Cause: The Management stated they submitted the requested 2023-2024 annual budgets, but there were issues with the utility allowances not aligning in the RD software. The Management tried to resolve the issues with RD but eventually the process stopped with no resolution. Effect or Possible Effect and Perspective: The Housing Authority did not comply with the reporting requirement set forth in the RD HB-2-3560 Chapter 4, Section 4 Budget Requirements and Chapter 4, Section 5 Annual Financial Reporting Due Dates and Agency Review of Annual Financial Reports. Repeat Finding: Not a Repeat finding. Recommendation: The Housing Authority should monitor the required RD report submission status, and maintain the documentation of the annual financial reports. Views of Responsible Officials: Agree.