FAC Explorer

Audit 342297

FY End
2024-06-30
Total Expended
$1.30M
Findings
12
Programs
1
Organization: Ottawa River Estates, Inc. 042-Hd072 (OH)
Year: 2024 Accepted: 2025-02-12
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
523037 2024-002 Significant Deficiency - N
523038 2024-002 Significant Deficiency - N
523039 2024-003 Significant Deficiency - N
523040 2024-003 Significant Deficiency - N
523041 2024-004 Significant Deficiency - N
523042 2024-004 Significant Deficiency - N
1099479 2024-002 Significant Deficiency - N
1099480 2024-002 Significant Deficiency - N
1099481 2024-003 Significant Deficiency - N
1099482 2024-003 Significant Deficiency - N
1099483 2024-004 Significant Deficiency - N
1099484 2024-004 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.24M Yes 3

Contacts

Name Title Type
W9AGSKZPG1W6 Cheryl Wilson Auditee
4192449609 Ken Saggese Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: Ottawa River Estates has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Ottawa River Estates 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 Ottawa River Estates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Ottawa River Estates.

Finding Details

Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per HUD requirements Surplus Cash calculated in the prior year must be deposited into a separate residual receipts account within 60 days of year end. Condition: During our testing, we noted that ORE failed to make the required deposit of surplus cash that was calculated in the 2023 audited financial statements. Questioned costs: None Context: During our testing we noted that there had been no deposits made into the residual receipts account. Cause: ORE had a change in personnel in February 2024 in the accounting department and the deposit was missed due to oversight. Effect: The residual receipts account is not in compliance with HUD Residual Receipts Provisions and is underfunded. Repeat Finding: No Recommendation: We recommend the ORE design controls to document the deposit of surplus cash when required. We also recommend the surplus cash amount of $47,003, calculated at 6/30/24 year end be deposited immediately. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per HUD requirements Surplus Cash calculated in the prior year must be deposited into a separate residual receipts account within 60 days of year end. Condition: During our testing, we noted that ORE failed to make the required deposit of surplus cash that was calculated in the 2023 audited financial statements. Questioned costs: None Context: During our testing we noted that there had been no deposits made into the residual receipts account. Cause: ORE had a change in personnel in February 2024 in the accounting department and the deposit was missed due to oversight. Effect: The residual receipts account is not in compliance with HUD Residual Receipts Provisions and is underfunded. Repeat Finding: No Recommendation: We recommend the ORE design controls to document the deposit of surplus cash when required. We also recommend the surplus cash amount of $47,003, calculated at 6/30/24 year end be deposited immediately. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per HUD requirements the entity must make established monthly deposits into the Reserve for Replacement account. Condition: During our testing, we noted that ORE failed to increase the required deposit for the Reserve for Replacement account when it became effective September 1, 2023. Questioned costs: None Context: During our testing we noted that there had been no increase in monthly deposits made into the reserve for replacement account. Cause: ORE had a change in personnel in February 2024 in the accounting department and the deposit increase was missed due to oversight during the first portion of the fiscal year. Effect: The Replacement for Reserve account is not in compliance with HUD Reserve for Replacement Provisions and is underfunded by $430. Repeat Finding: No Recommendation: CLA recommends performing training regarding HUD requirements surrounding Replacement Reserve Provisions and introduce policies and procedures to prevent oversight of deposit changes and deposit the underfunded amount immediately. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per HUD requirements the entity must make established monthly deposits into the Reserve for Replacement account. Condition: During our testing, we noted that ORE failed to increase the required deposit for the Reserve for Replacement account when it became effective September 1, 2023. Questioned costs: None Context: During our testing we noted that there had been no increase in monthly deposits made into the reserve for replacement account. Cause: ORE had a change in personnel in February 2024 in the accounting department and the deposit increase was missed due to oversight during the first portion of the fiscal year. Effect: The Replacement for Reserve account is not in compliance with HUD Reserve for Replacement Provisions and is underfunded by $430. Repeat Finding: No Recommendation: CLA recommends performing training regarding HUD requirements surrounding Replacement Reserve Provisions and introduce policies and procedures to prevent oversight of deposit changes and deposit the underfunded amount immediately. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-004
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per HUD requirements Surplus Cash calculated in the prior year must be deposited into a separate residual receipts account within 60 days of year end. Condition: During our testing, we noted that ORE failed to make the required deposit of surplus cash that was calculated in the 2023 audited financial statements. Questioned costs: None Context: During our testing we noted that there had been no deposits made into the residual receipts account. Cause: Surplus cash was not calculated or remitted within 60 days due to oversight. Effect: The residual receipts account is not in compliance with HUD Residual Receipts Provisions and is underfunded. Repeat Finding: No Recommendation: We recommend the ORE design controls to document the deposit of surplus cash when required. We also recommend the surplus cash amount of $47,003, calculated at 6/30/24 year end be deposited immediately Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-004
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per HUD requirements Surplus Cash calculated in the prior year must be deposited into a separate residual receipts account within 60 days of year end. Condition: During our testing, we noted that ORE failed to make the required deposit of surplus cash that was calculated in the 2023 audited financial statements. Questioned costs: None Context: During our testing we noted that there had been no deposits made into the residual receipts account. Cause: Surplus cash was not calculated or remitted within 60 days due to oversight. Effect: The residual receipts account is not in compliance with HUD Residual Receipts Provisions and is underfunded. Repeat Finding: No Recommendation: We recommend the ORE design controls to document the deposit of surplus cash when required. We also recommend the surplus cash amount of $47,003, calculated at 6/30/24 year end be deposited immediately Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per HUD requirements Surplus Cash calculated in the prior year must be deposited into a separate residual receipts account within 60 days of year end. Condition: During our testing, we noted that ORE failed to make the required deposit of surplus cash that was calculated in the 2023 audited financial statements. Questioned costs: None Context: During our testing we noted that there had been no deposits made into the residual receipts account. Cause: ORE had a change in personnel in February 2024 in the accounting department and the deposit was missed due to oversight. Effect: The residual receipts account is not in compliance with HUD Residual Receipts Provisions and is underfunded. Repeat Finding: No Recommendation: We recommend the ORE design controls to document the deposit of surplus cash when required. We also recommend the surplus cash amount of $47,003, calculated at 6/30/24 year end be deposited immediately. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per HUD requirements Surplus Cash calculated in the prior year must be deposited into a separate residual receipts account within 60 days of year end. Condition: During our testing, we noted that ORE failed to make the required deposit of surplus cash that was calculated in the 2023 audited financial statements. Questioned costs: None Context: During our testing we noted that there had been no deposits made into the residual receipts account. Cause: ORE had a change in personnel in February 2024 in the accounting department and the deposit was missed due to oversight. Effect: The residual receipts account is not in compliance with HUD Residual Receipts Provisions and is underfunded. Repeat Finding: No Recommendation: We recommend the ORE design controls to document the deposit of surplus cash when required. We also recommend the surplus cash amount of $47,003, calculated at 6/30/24 year end be deposited immediately. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per HUD requirements the entity must make established monthly deposits into the Reserve for Replacement account. Condition: During our testing, we noted that ORE failed to increase the required deposit for the Reserve for Replacement account when it became effective September 1, 2023. Questioned costs: None Context: During our testing we noted that there had been no increase in monthly deposits made into the reserve for replacement account. Cause: ORE had a change in personnel in February 2024 in the accounting department and the deposit increase was missed due to oversight during the first portion of the fiscal year. Effect: The Replacement for Reserve account is not in compliance with HUD Reserve for Replacement Provisions and is underfunded by $430. Repeat Finding: No Recommendation: CLA recommends performing training regarding HUD requirements surrounding Replacement Reserve Provisions and introduce policies and procedures to prevent oversight of deposit changes and deposit the underfunded amount immediately. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-003
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per HUD requirements the entity must make established monthly deposits into the Reserve for Replacement account. Condition: During our testing, we noted that ORE failed to increase the required deposit for the Reserve for Replacement account when it became effective September 1, 2023. Questioned costs: None Context: During our testing we noted that there had been no increase in monthly deposits made into the reserve for replacement account. Cause: ORE had a change in personnel in February 2024 in the accounting department and the deposit increase was missed due to oversight during the first portion of the fiscal year. Effect: The Replacement for Reserve account is not in compliance with HUD Reserve for Replacement Provisions and is underfunded by $430. Repeat Finding: No Recommendation: CLA recommends performing training regarding HUD requirements surrounding Replacement Reserve Provisions and introduce policies and procedures to prevent oversight of deposit changes and deposit the underfunded amount immediately. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-004
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per HUD requirements Surplus Cash calculated in the prior year must be deposited into a separate residual receipts account within 60 days of year end. Condition: During our testing, we noted that ORE failed to make the required deposit of surplus cash that was calculated in the 2023 audited financial statements. Questioned costs: None Context: During our testing we noted that there had been no deposits made into the residual receipts account. Cause: Surplus cash was not calculated or remitted within 60 days due to oversight. Effect: The residual receipts account is not in compliance with HUD Residual Receipts Provisions and is underfunded. Repeat Finding: No Recommendation: We recommend the ORE design controls to document the deposit of surplus cash when required. We also recommend the surplus cash amount of $47,003, calculated at 6/30/24 year end be deposited immediately Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-004
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Assistance Listing Number: 14.181 Award Period: July 1, 2023 to June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per HUD requirements Surplus Cash calculated in the prior year must be deposited into a separate residual receipts account within 60 days of year end. Condition: During our testing, we noted that ORE failed to make the required deposit of surplus cash that was calculated in the 2023 audited financial statements. Questioned costs: None Context: During our testing we noted that there had been no deposits made into the residual receipts account. Cause: Surplus cash was not calculated or remitted within 60 days due to oversight. Effect: The residual receipts account is not in compliance with HUD Residual Receipts Provisions and is underfunded. Repeat Finding: No Recommendation: We recommend the ORE design controls to document the deposit of surplus cash when required. We also recommend the surplus cash amount of $47,003, calculated at 6/30/24 year end be deposited immediately Views of responsible officials: There is no disagreement with the audit finding.