FAC Explorer

Audit 342455

FY End
2024-09-30
Total Expended
$1.92M
Findings
8
Programs
1
Organization: Indian Town Home Association (IL)
Year: 2024 Accepted: 2025-02-13
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
523134 2024-001 Material Weakness - L
523135 2024-001 Material Weakness - L
523136 2024-002 Significant Deficiency - N
523137 2024-002 Significant Deficiency - N
1099576 2024-001 Material Weakness - L
1099577 2024-001 Material Weakness - L
1099578 2024-002 Significant Deficiency - N
1099579 2024-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.82M Yes 2

Contacts

Name Title Type
C6JXX7L1GWH3 Jennifer Medearis Auditee
3093561112 Rusty Gibson 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Indian Town Home Association has not elected to use the 10 percent 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 Indian Town Home Association under programs of the federal government for the year ended September 30, 2024. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Indian Town Home Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Indian Town Home Association.
Title: NONMONETARY ASSISTANCE 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Indian Town Home Association has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance The mortgage note in the amount of $1,824,900 to the U.S. Department of Housing and Urban Development is secured by the apartment project. The Organization did not receive any federal awards in the form of noncash assistance for insurance in effect during the year. In addition, the Organization did not pass through any federal grants to subrecipients.

Finding Details

Finding 2024-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Section 202 Project Rental Assistance Contract Assistance Listing #: 14.157 Questioned Costs: None Type of Finding: • Material Weakness in Internal Control over Compliance Condition: There is not an ideal segregation of duties among personnel involved in the accounting function. A lack of proper segregation of duties could allow errors or irregularities to occur and go undetected. This condition is inherent in operations which, for sound economic conditions, must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Criteria or Specific Requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, if possible. Cause: For sound economic reasons, the Organization and the management company must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Effect: A lack of segregation of duties increases the risk that errors or fraud may occur and not be prevented or detected on a timely basis. Repeat Finding: No Recommendation: When this condition exists, management’s and the board’s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities. Views of Responsible Officials and Planned Corrective Actions: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.
Finding 2024-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Section 202 Project Rental Assistance Contract Assistance Listing #: 14.157 Questioned Costs: None Type of Finding: • Material Weakness in Internal Control over Compliance Condition: There is not an ideal segregation of duties among personnel involved in the accounting function. A lack of proper segregation of duties could allow errors or irregularities to occur and go undetected. This condition is inherent in operations which, for sound economic conditions, must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Criteria or Specific Requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, if possible. Cause: For sound economic reasons, the Organization and the management company must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Effect: A lack of segregation of duties increases the risk that errors or fraud may occur and not be prevented or detected on a timely basis. Repeat Finding: No Recommendation: When this condition exists, management’s and the board’s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities. Views of Responsible Officials and Planned Corrective Actions: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.
Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Section 202 Project Rental Assistance Contract Assistance Listing #: 14.157 Type of Finding: • Other Matter and Significant Deficiency in Internal Control over Compliance Condition: The Organization had surplus cash at September 30, 2023 of $39,374. This surplus cash was not deposited into the residual receipts reserve account within 90 days from September 30, 2023. The deposit was made on July 31, 2024. Criteria or Specific Requirement: The HUD regulatory agreement requires any surplus cash to be deposited into the residual receipts account within 90 days of year end. Questioned Costs: None Cause: Management oversight. Effect: The Organization is not in compliance with the HUD regulatory agreement. Repeat Finding: No Recommendation: We recommend that management ensure any surplus cash is deposited within 90 days of year end. Views of Responsible Officials and Planned Corrective Actions: We agree and will ensure future surplus cash is deposited within the required timeline.
Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Section 202 Project Rental Assistance Contract Assistance Listing #: 14.157 Type of Finding: • Other Matter and Significant Deficiency in Internal Control over Compliance Condition: The Organization had surplus cash at September 30, 2023 of $39,374. This surplus cash was not deposited into the residual receipts reserve account within 90 days from September 30, 2023. The deposit was made on July 31, 2024. Criteria or Specific Requirement: The HUD regulatory agreement requires any surplus cash to be deposited into the residual receipts account within 90 days of year end. Questioned Costs: None Cause: Management oversight. Effect: The Organization is not in compliance with the HUD regulatory agreement. Repeat Finding: No Recommendation: We recommend that management ensure any surplus cash is deposited within 90 days of year end. Views of Responsible Officials and Planned Corrective Actions: We agree and will ensure future surplus cash is deposited within the required timeline.
Finding 2024-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Section 202 Project Rental Assistance Contract Assistance Listing #: 14.157 Questioned Costs: None Type of Finding: • Material Weakness in Internal Control over Compliance Condition: There is not an ideal segregation of duties among personnel involved in the accounting function. A lack of proper segregation of duties could allow errors or irregularities to occur and go undetected. This condition is inherent in operations which, for sound economic conditions, must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Criteria or Specific Requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, if possible. Cause: For sound economic reasons, the Organization and the management company must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Effect: A lack of segregation of duties increases the risk that errors or fraud may occur and not be prevented or detected on a timely basis. Repeat Finding: No Recommendation: When this condition exists, management’s and the board’s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities. Views of Responsible Officials and Planned Corrective Actions: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.
Finding 2024-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Section 202 Project Rental Assistance Contract Assistance Listing #: 14.157 Questioned Costs: None Type of Finding: • Material Weakness in Internal Control over Compliance Condition: There is not an ideal segregation of duties among personnel involved in the accounting function. A lack of proper segregation of duties could allow errors or irregularities to occur and go undetected. This condition is inherent in operations which, for sound economic conditions, must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Criteria or Specific Requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, if possible. Cause: For sound economic reasons, the Organization and the management company must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Effect: A lack of segregation of duties increases the risk that errors or fraud may occur and not be prevented or detected on a timely basis. Repeat Finding: No Recommendation: When this condition exists, management’s and the board’s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities. Views of Responsible Officials and Planned Corrective Actions: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.
Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Section 202 Project Rental Assistance Contract Assistance Listing #: 14.157 Type of Finding: • Other Matter and Significant Deficiency in Internal Control over Compliance Condition: The Organization had surplus cash at September 30, 2023 of $39,374. This surplus cash was not deposited into the residual receipts reserve account within 90 days from September 30, 2023. The deposit was made on July 31, 2024. Criteria or Specific Requirement: The HUD regulatory agreement requires any surplus cash to be deposited into the residual receipts account within 90 days of year end. Questioned Costs: None Cause: Management oversight. Effect: The Organization is not in compliance with the HUD regulatory agreement. Repeat Finding: No Recommendation: We recommend that management ensure any surplus cash is deposited within 90 days of year end. Views of Responsible Officials and Planned Corrective Actions: We agree and will ensure future surplus cash is deposited within the required timeline.
Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Section 202 Project Rental Assistance Contract Assistance Listing #: 14.157 Type of Finding: • Other Matter and Significant Deficiency in Internal Control over Compliance Condition: The Organization had surplus cash at September 30, 2023 of $39,374. This surplus cash was not deposited into the residual receipts reserve account within 90 days from September 30, 2023. The deposit was made on July 31, 2024. Criteria or Specific Requirement: The HUD regulatory agreement requires any surplus cash to be deposited into the residual receipts account within 90 days of year end. Questioned Costs: None Cause: Management oversight. Effect: The Organization is not in compliance with the HUD regulatory agreement. Repeat Finding: No Recommendation: We recommend that management ensure any surplus cash is deposited within 90 days of year end. Views of Responsible Officials and Planned Corrective Actions: We agree and will ensure future surplus cash is deposited within the required timeline.