FAC Explorer

Audit 335772

FY End
2024-06-30
Total Expended
$10.95M
Findings
4
Programs
8
Organization: Chicago House and Social Service Agency and Fred Woods Home, Inc. (IL)
Year: 2024 Accepted: 2025-01-03
Auditor: Wieland Wallace INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
517723 2024-001 Material Weakness - N
517724 2024-002 - - P
1094165 2024-001 Material Weakness - N
1094166 2024-002 - - P

Programs

ALN Program Spent Major Findings
14.275 Housing Trust Fund $2.65M Yes 0
14.181 Supportive Housing for Persons with Disabilities $2.26M Yes 2
93.917 Hiv Care Formula Grants $395,971 - 0
14.241 Housing Opportunities for Persons with Aids $337,551 - 0
14.267 Continuum of Care Program $138,949 - 0
93.940 Hiv Prevention Activities_health Department Based $104,519 - 0
93.914 Hiv Emergency Relief Project Grants $61,476 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $56,711 - 0

Contacts

Name Title Type
HMKUTACDKMX7 Michael Herman Auditee
7732485200 Lindsay A. Wallace Auditor
No contacts on file

Notes to SEFA

Title: CAPITAL ADVANCES Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Chicago House and Social Service Agency and Subsidiaries’ owned and operated F.H.A. Project. Nos. 071-HD024/IL06-Q933-001 and 071-HD152/IL06-Q051-005, under programs of the federal government for the year ended June 30, 2023. The information in the 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 operations of Chicago House and Social Service Agency and Subsidiaries, it is not intended to and does not present the financial position, changes in net assets or cash flows of Chicago House and Social Service Agency and Subsidiaries. De Minimis Rate Used: Y Rate Explanation: 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 Organizations have elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Fred Woods Home, Inc. had the following capital advances at June 30, 2024. These capital advances outstanding are also included in the federal expenditures presented in the schedule. HUD Project Number Federal CFDA Number Program Title Amount Outstanding 071-HD024 14.181 Section 811 $ 1,119,900 071-HD152 14.181 Section 811 975,800 $ 2,095,700
Title: OTHER MATTERS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Chicago House and Social Service Agency and Subsidiaries’ owned and operated F.H.A. Project. Nos. 071-HD024/IL06-Q933-001 and 071-HD152/IL06-Q051-005, under programs of the federal government for the year ended June 30, 2023. The information in the 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 operations of Chicago House and Social Service Agency and Subsidiaries, it is not intended to and does not present the financial position, changes in net assets or cash flows of Chicago House and Social Service Agency and Subsidiaries. De Minimis Rate Used: Y Rate Explanation: 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 Organizations have elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Amount of non-cash assistance: None Amount of insurance assistance received: None Amount of loans: None Amount of loan guarantees: None

Finding Details

Finding 2024-001
2024-001 Fred Woods Home Inc. Replacement Reserve Deposit Criteria: The Project is required to make monthly replacement reserve deposits. Condition: The Project did not make a required replacement reserve deposit. Context: The Project opened a new bank account in July and inadvertently missed the July replacement reserve deposit. All other deposits during the year were made timely. Effect: Failure to make replacement reserve deposits results in noncompliance with the regulatory agreement. Cause: Management oversight. Recommendation: The Project should review its internal control policies to ensure all deposits are made timely. Response: Management agrees with the finding. Actions Taken or Planned on the Finding: The delinquent deposit was made on September 5, 2024. This finding is closed.
Finding 2024-002
2024-002 Consolidating All Subsidiaries Criteria: All subsidiaries should be accounted for in the consolidated financial statements. Condition: Englewood Family Homes LLC was not included in the consolidated financial statements for the year ended June 30, 2023. Context: On July 27, 2022, Englewood Family Homes LLC, a subsidiary of Chicago House and Social Service Agency, purchased an apartment building and entered into several loans to rehabilitate the building. Rehabilitation was still ongoing at June 30, 2023. Effect: The financial statements for Chicago House and Social Service Agency and Subsidiaries were not complete. Cause: The creation of Englewood Family Homes LLC, the purchase of the building, and the subsequent rehabilitation began in July 2022 and was not completed as of June 30, 2023. Although thorough financial records were being kept on the progress of the rehabilitation, due to an oversight by management because of the ongoing nature of the rehabilitation, the Englewood Family Homes LLC financials were not included in the consolidated financial statements of Chicago House and Social Service Agency. Recommendation: The financial statements of Englewood Family Homes LLC should be included in the consolidated financial statements of Chicago House and Social Service Agency moving forward. Controls should be implemented to assure any new subsidiaries of the Organization should be included in the consolidated financial statements. Response: Management agrees with the finding. Actions Taken or Planned on the Finding: Management has addressed and implemented internal controls to assure all subsidiaries are recorded on the consolidated financial statements. The financial statements for the year ended June 30, 2023 have been restated to include Englewood Family Homes LLC. This finding is closed.
Finding 2024-001
2024-001 Fred Woods Home Inc. Replacement Reserve Deposit Criteria: The Project is required to make monthly replacement reserve deposits. Condition: The Project did not make a required replacement reserve deposit. Context: The Project opened a new bank account in July and inadvertently missed the July replacement reserve deposit. All other deposits during the year were made timely. Effect: Failure to make replacement reserve deposits results in noncompliance with the regulatory agreement. Cause: Management oversight. Recommendation: The Project should review its internal control policies to ensure all deposits are made timely. Response: Management agrees with the finding. Actions Taken or Planned on the Finding: The delinquent deposit was made on September 5, 2024. This finding is closed.
Finding 2024-002
2024-002 Consolidating All Subsidiaries Criteria: All subsidiaries should be accounted for in the consolidated financial statements. Condition: Englewood Family Homes LLC was not included in the consolidated financial statements for the year ended June 30, 2023. Context: On July 27, 2022, Englewood Family Homes LLC, a subsidiary of Chicago House and Social Service Agency, purchased an apartment building and entered into several loans to rehabilitate the building. Rehabilitation was still ongoing at June 30, 2023. Effect: The financial statements for Chicago House and Social Service Agency and Subsidiaries were not complete. Cause: The creation of Englewood Family Homes LLC, the purchase of the building, and the subsequent rehabilitation began in July 2022 and was not completed as of June 30, 2023. Although thorough financial records were being kept on the progress of the rehabilitation, due to an oversight by management because of the ongoing nature of the rehabilitation, the Englewood Family Homes LLC financials were not included in the consolidated financial statements of Chicago House and Social Service Agency. Recommendation: The financial statements of Englewood Family Homes LLC should be included in the consolidated financial statements of Chicago House and Social Service Agency moving forward. Controls should be implemented to assure any new subsidiaries of the Organization should be included in the consolidated financial statements. Response: Management agrees with the finding. Actions Taken or Planned on the Finding: Management has addressed and implemented internal controls to assure all subsidiaries are recorded on the consolidated financial statements. The financial statements for the year ended June 30, 2023 have been restated to include Englewood Family Homes LLC. This finding is closed.