FAC Explorer

Audit 341473

FY End
2024-06-30
Total Expended
$1.03M
Findings
4
Programs
1
Organization: Cloville Homes, Inc. (MD)
Year: 2024 Accepted: 2025-02-06
Auditor: Pkf O'Connor Davies LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
522227 2024-001 - - N
522228 2024-001 - - N
1098669 2024-001 - - N
1098670 2024-001 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $183,142 Yes 1

Contacts

Name Title Type
EHSGMNPEN9R4 Kevin Greoski Auditee
4103664299 Ravi Melwani Auditor
No contacts on file

Notes to SEFA

Title: Loan/Loan Guartee Outstanding Balance Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the “Schedule”) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Schedule includes the federal award activity of Cloville Homes, Inc. (the “Entity”) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Entity, it is not intended to and does not present the financial position, change in net assets or cash flows of the Entity. De Minimis Rate Used: N Rate Explanation: The Entity is reimbursed for programmatic and administrative costs in accordance with rules set forth by the U.S. Department of Housing and Urban Development Balance of loan outstanding under the Supportive Housing for Persons with Disabilities - Capital Advance Program at June 30, 2024 is $848,900
Title: Federal Loan Program Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the “Schedule”) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Schedule includes the federal award activity of Cloville Homes, Inc. (the “Entity”) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Entity, it is not intended to and does not present the financial position, change in net assets or cash flows of the Entity. De Minimis Rate Used: N Rate Explanation: The Entity is reimbursed for programmatic and administrative costs in accordance with rules set forth by the U.S. Department of Housing and Urban Development The Entity received a U.S. Department of Housing and Urban Development Capital Advance under Section 811 of the National Affordable Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Entity received no additional loans during the year

Finding Details

Finding 2024-001
Finding No. 2024-001 – Replacement Reserve Funding Federal Assistance Listing Number Name of Federal Program or Cluster 14.181 Supportive Housing for Persons with Disabilities Information on the Universe Population Size Twelve (12) monthly payments. Sample Size Information Twelve (12) monthly payments. Identification of Repeat Finding Reference Number N/A Criteria The regulatory agreement requires monthly payments to fund the replacement reserve. Statement of Condition One monthly payment was not made to the replacement reserve during the year. Cause An unknown error occurred which prevented the automatic transfer for October to be made to the account. Effect or Potential Effect The replacement reserve fund is underfunded by a total of $111. Auditor Non-Compliance Code N- Reserve for Replacements Deposits Questioned Costs There were no known questioned costs.Reporting Views of Responsible Officials The Auditee agrees with this finding and will make the required deposits timely going forward. FHA/Contract Number 052-HD060 Questioned Costs $0 Context The finding represents an instance of management oversight. An unknown error occurred which prevented the automatic transfer for October to be made to the accounts. Recommendations We recommend that management fund the reserve immediately to make it current and create a better system of controls allowing for automatic debits to be made monthly from operating account to fund replacement reserve and ensure no future underfunding. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations The Auditee agrees with the finding and has made an additional deposit to the replacement reserve account in order to fund the shortfall prior to the issuance of the financial statements. They have established a system in order to ensure no further occurrences. Response Indicator Agree Completion Date September 23, 2024 Response Management agrees with the finding and has made a deposit to the replacement reserve account to fund the shortfall prior to the issuance of the financial statements and have established a system in order to ensure no future occurrences.
Finding 2024-001
Finding No. 2024-001 – Replacement Reserve Funding Federal Assistance Listing Number Name of Federal Program or Cluster 14.181 Supportive Housing for Persons with Disabilities Information on the Universe Population Size Twelve (12) monthly payments. Sample Size Information Twelve (12) monthly payments. Identification of Repeat Finding Reference Number N/A Criteria The regulatory agreement requires monthly payments to fund the replacement reserve. Statement of Condition One monthly payment was not made to the replacement reserve during the year. Cause An unknown error occurred which prevented the automatic transfer for October to be made to the account. Effect or Potential Effect The replacement reserve fund is underfunded by a total of $111. Auditor Non-Compliance Code N- Reserve for Replacements Deposits Questioned Costs There were no known questioned costs.Reporting Views of Responsible Officials The Auditee agrees with this finding and will make the required deposits timely going forward. FHA/Contract Number 052-HD060 Questioned Costs $0 Context The finding represents an instance of management oversight. An unknown error occurred which prevented the automatic transfer for October to be made to the accounts. Recommendations We recommend that management fund the reserve immediately to make it current and create a better system of controls allowing for automatic debits to be made monthly from operating account to fund replacement reserve and ensure no future underfunding. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations The Auditee agrees with the finding and has made an additional deposit to the replacement reserve account in order to fund the shortfall prior to the issuance of the financial statements. They have established a system in order to ensure no further occurrences. Response Indicator Agree Completion Date September 23, 2024 Response Management agrees with the finding and has made a deposit to the replacement reserve account to fund the shortfall prior to the issuance of the financial statements and have established a system in order to ensure no future occurrences.
Finding 2024-001
Finding No. 2024-001 – Replacement Reserve Funding Federal Assistance Listing Number Name of Federal Program or Cluster 14.181 Supportive Housing for Persons with Disabilities Information on the Universe Population Size Twelve (12) monthly payments. Sample Size Information Twelve (12) monthly payments. Identification of Repeat Finding Reference Number N/A Criteria The regulatory agreement requires monthly payments to fund the replacement reserve. Statement of Condition One monthly payment was not made to the replacement reserve during the year. Cause An unknown error occurred which prevented the automatic transfer for October to be made to the account. Effect or Potential Effect The replacement reserve fund is underfunded by a total of $111. Auditor Non-Compliance Code N- Reserve for Replacements Deposits Questioned Costs There were no known questioned costs.Reporting Views of Responsible Officials The Auditee agrees with this finding and will make the required deposits timely going forward. FHA/Contract Number 052-HD060 Questioned Costs $0 Context The finding represents an instance of management oversight. An unknown error occurred which prevented the automatic transfer for October to be made to the accounts. Recommendations We recommend that management fund the reserve immediately to make it current and create a better system of controls allowing for automatic debits to be made monthly from operating account to fund replacement reserve and ensure no future underfunding. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations The Auditee agrees with the finding and has made an additional deposit to the replacement reserve account in order to fund the shortfall prior to the issuance of the financial statements. They have established a system in order to ensure no further occurrences. Response Indicator Agree Completion Date September 23, 2024 Response Management agrees with the finding and has made a deposit to the replacement reserve account to fund the shortfall prior to the issuance of the financial statements and have established a system in order to ensure no future occurrences.
Finding 2024-001
Finding No. 2024-001 – Replacement Reserve Funding Federal Assistance Listing Number Name of Federal Program or Cluster 14.181 Supportive Housing for Persons with Disabilities Information on the Universe Population Size Twelve (12) monthly payments. Sample Size Information Twelve (12) monthly payments. Identification of Repeat Finding Reference Number N/A Criteria The regulatory agreement requires monthly payments to fund the replacement reserve. Statement of Condition One monthly payment was not made to the replacement reserve during the year. Cause An unknown error occurred which prevented the automatic transfer for October to be made to the account. Effect or Potential Effect The replacement reserve fund is underfunded by a total of $111. Auditor Non-Compliance Code N- Reserve for Replacements Deposits Questioned Costs There were no known questioned costs.Reporting Views of Responsible Officials The Auditee agrees with this finding and will make the required deposits timely going forward. FHA/Contract Number 052-HD060 Questioned Costs $0 Context The finding represents an instance of management oversight. An unknown error occurred which prevented the automatic transfer for October to be made to the accounts. Recommendations We recommend that management fund the reserve immediately to make it current and create a better system of controls allowing for automatic debits to be made monthly from operating account to fund replacement reserve and ensure no future underfunding. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations The Auditee agrees with the finding and has made an additional deposit to the replacement reserve account in order to fund the shortfall prior to the issuance of the financial statements. They have established a system in order to ensure no further occurrences. Response Indicator Agree Completion Date September 23, 2024 Response Management agrees with the finding and has made a deposit to the replacement reserve account to fund the shortfall prior to the issuance of the financial statements and have established a system in order to ensure no future occurrences.