FAC Explorer

Audit 341509

FY End
2024-06-30
Total Expended
$6.34M
Findings
2
Programs
2
Organization: Central Valley Senior Housing Corporation (CA)
Year: 2024 Accepted: 2025-02-06
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
522251 2024-001 Significant Deficiency - B
1098693 2024-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $350,000 - 0
14.157 Supportive Housing for the Elderly $196,332 Yes 0

Contacts

Name Title Type
XAHCJRFMCSY8 Julia Cerna Auditee
5105821460 Brian Brewer Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Corporations" and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Central Valley Senior Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Central Valley Senior Housing Corporation, HUD Project No.: 136-EE-080, 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 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 Central Valley Senior Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Central Valley Senior Housing Corporation. For the year ended June 30, 2024, no awards were passed through to subrecipients.
Title: Note 2 - Summary of significant accounting policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Corporations" and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Central Valley Senior Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Corporations" and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 - Indirect cost rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Corporations" and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Central Valley Senior Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Central Valley Senior Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4 - U.S. Department of Housing and Urban Development forgivable loan program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Corporations" and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Central Valley Senior Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The loan balances outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. Central Valley Senior Housing Corporation received no additional loans during the year. The forgivable loan balances outstanding as of June 30, 2024 consists of: See Notes to the SEFA for chart/table

Finding Details

Finding 2024-001
Department of Housing and Urban Development Finding No. 2024-001; Section 202 Capital Advance – Supportive Housing for the Elderly Criteria Residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended June 30, 2024, management did not make the required residual receipts reserve deposit in the amount of $12,574 within 90 days of year end, as required by HUD. The residual receipts amount was deposited on September 23, 2024. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Corporation is not in compliance with the requirements of the regulatory agreement. Questioned Costs There were no questioned costs. Context In connection with the procedures applied to test compliance with reserve requirements, there was one instance where management did not timely make the required residual receipts deposit in the amount of $12,574 for the year ended June 30, 2023 within 90 days of year end, as required by HUD. Identification as a Repeat Finding Not a repeat finding. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits. Finding Resolution Status: Resolved. The Project completed the required residual receipts deposit via wire transfer on September 23, 2024. Views of Responsible Officials Management concurs that the Project did not timely complete the required residual receipts deposit in the amount of $12,574 for the year ended June 30, 2023. Management further notes that they have re-trained staff, reaffirmed the review and approval process to ensure required residual receipt reserve deposits are completed timely. Management has made changes to internal controls to identify and make required residual receipt reserve deposits. It has completed the required residual receipt deposit.
Finding 2024-001
Department of Housing and Urban Development Finding No. 2024-001; Section 202 Capital Advance – Supportive Housing for the Elderly Criteria Residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended June 30, 2024, management did not make the required residual receipts reserve deposit in the amount of $12,574 within 90 days of year end, as required by HUD. The residual receipts amount was deposited on September 23, 2024. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Corporation is not in compliance with the requirements of the regulatory agreement. Questioned Costs There were no questioned costs. Context In connection with the procedures applied to test compliance with reserve requirements, there was one instance where management did not timely make the required residual receipts deposit in the amount of $12,574 for the year ended June 30, 2023 within 90 days of year end, as required by HUD. Identification as a Repeat Finding Not a repeat finding. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits. Finding Resolution Status: Resolved. The Project completed the required residual receipts deposit via wire transfer on September 23, 2024. Views of Responsible Officials Management concurs that the Project did not timely complete the required residual receipts deposit in the amount of $12,574 for the year ended June 30, 2023. Management further notes that they have re-trained staff, reaffirmed the review and approval process to ensure required residual receipt reserve deposits are completed timely. Management has made changes to internal controls to identify and make required residual receipt reserve deposits. It has completed the required residual receipt deposit.