Audit 348028

FY End

2024-06-30

Total Expended

$3.97M

Findings

2

Programs

1

Organization: Chippewa Lutheran Housing Corporation (PA)

Year: 2024 Accepted: 2025-03-25

Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
529950	2024-001	Significant Deficiency	-	P
1106392	2024-001	Significant Deficiency	-	P

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$3.97M	Yes	1

Contacts

Name	Title	Type
DUAEHGJ9GGQ5	Jeffery Carraway	Auditee
7247422246	Kyle Bowers	Auditor
No contacts on file

Notes to SEFA

Title: HUD CAPITAL ADVANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Chippewa Lutheran Housing Corporation dba: Lutheran Village at Chippewa (the Corporation) 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 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 the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or 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. The Corporation has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The balance of the HUD capital advance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. There were no additional HUD advances during the year. The balance of the HUD advances outstanding at June 30, 2024 was $3,824,000.

Finding Details

Finding 2024-001

2024-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Supportive Housing for the Elderly Section 202 ALN Number: 14.157 Award Period: Year Ended June 30, 2024 Type of Finding: - Significant Deficiency in Internal Control over Compliance -Other Matters - Criteria or Specific Requirement: Expired Project Rental Assistance Contract (PRAC). - Condition: The Corporation did not renew the PRAC timely. - Questioned Costs: None. - Context: The PRAC expired September 30, 2023, and was not renewed until March 28, 2024. - Cause: The Corporation did not renew the contract timely. - Effect: A PRAC is required for Housing Assistance Payments. - Recommendation: The Corporation should ensure the PRAC is renewed on a timely basis annually. - Views of Responsible Officials and Planned Corrective Actions: Management acknowledges this finding and is taking steps to correct. With the recent turnover of the HUD building management, new management team members were hired and have been trained on the process to ensure timely submissions of proposed budgets and contract completion. A master schedule has been set up and all budget submissions are being reviewed by the Finance Department prior to submission to HUD.

Finding 2024-001

2024-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Supportive Housing for the Elderly Section 202 ALN Number: 14.157 Award Period: Year Ended June 30, 2024 Type of Finding: - Significant Deficiency in Internal Control over Compliance -Other Matters - Criteria or Specific Requirement: Expired Project Rental Assistance Contract (PRAC). - Condition: The Corporation did not renew the PRAC timely. - Questioned Costs: None. - Context: The PRAC expired September 30, 2023, and was not renewed until March 28, 2024. - Cause: The Corporation did not renew the contract timely. - Effect: A PRAC is required for Housing Assistance Payments. - Recommendation: The Corporation should ensure the PRAC is renewed on a timely basis annually. - Views of Responsible Officials and Planned Corrective Actions: Management acknowledges this finding and is taking steps to correct. With the recent turnover of the HUD building management, new management team members were hired and have been trained on the process to ensure timely submissions of proposed budgets and contract completion. A master schedule has been set up and all budget submissions are being reviewed by the Finance Department prior to submission to HUD.