FAC Explorer

Audit 357783

FY End
2024-12-31
Total Expended
$1.00M
Findings
2
Programs
2
Organization: Caspian Housing Corporation - Spring Valley Apartments (MI)
Year: 2024 Accepted: 2025-06-02
Auditor: Maner Costerisan

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
562179 2024-001 Material Weakness - P
1138621 2024-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $849,370 Yes 1
14.195 Project-Based Rental Assistance (pbra) $152,908 - 0

Contacts

Name Title Type
KQJSK63DM9W6 Debra Hardwick Auditee
9062173014 Keith Pfeifle 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 the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Caspian Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or before September 30, 2024 and also has not elected to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or after October 1, 2024. De Minimis Rate Used: N Rate Explanation: Caspian Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or before September 30, 2024 and also has not elected to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or after October 1, 2024. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Caspian Housing Corporation under programs of the federal government for the year ended December 31, 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 Caspian Housing Corporation, it is not intended to and does not present the financial position, changes in net deficit or cash flows of Caspian Housing Corporation.
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 the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Caspian Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or before September 30, 2024 and also has not elected to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or after October 1, 2024. De Minimis Rate Used: N Rate Explanation: Caspian Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or before September 30, 2024 and also has not elected to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or after October 1, 2024. 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. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Caspian Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or before September 30, 2024 and also has not elected to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or after October 1, 2024.
Title: NOTE 3 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM 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. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Caspian Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or before September 30, 2024 and also has not elected to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or after October 1, 2024. De Minimis Rate Used: N Rate Explanation: Caspian Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or before September 30, 2024 and also has not elected to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or after October 1, 2024. Caspian Housing Corporation has a mortgage insured by U.S. Department of Housing and Urban Development under Section 223(f) of the National Housing Act. The mortgage is included in the federal expenditures presented in the Schedule. Caspian Housing Corporation received no additional capital advances, or loans, during the year. The balance of the mortgage at December 31, 2024, was $815,443.

Finding Details

Finding 2024-001
Finding 2024-001: Considered a material weakness in internal controls over major program compliance. Major Program ALN: 14.155 Major Program Name: Mortgage Insurance for the Purchase of Refinancing of Multifamily Housing Projects Criteria: According to 2 CFR Part 200 (Uniform Guidance), specifically 2 CFR §200.303, non-federal entities are required to establish and maintain effective internal control over federal awards. This includes written policies and procedures to ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our review of Caspian Housing Corporation’s administration of its major federal program, we noted that the entity lacks formal, written policies and procedures governing key compliance areas. The absence of such written policies and procedures increases the risk of noncompliance with HUD program requirements and may result in inefficiencies, errors, or potential misuse of federal funds. Cause: Caspian Housing Corporation has not developed or implemented written policies and procedures in accordance with federal requirements. Effect: Without documented policies and procedures, Caspian Housing Corporation is at risk of noncompliance with federal requirements, which could lead to financial penalties, questioned costs, or potential loss of federal funding. Recommendation: We recommend that Caspian Housing Corporation develop and implement comprehensive written policies and procedures that align with Uniform Guidance requirements. Management Response: Management is in agreement with the recommendations and will work to implement the required policies and procedures in accordance with Uniform Guidance requirements during 2025. Auditor Non-compliance Code: S - internal control deficiencies
Finding 2024-001
Finding 2024-001: Considered a material weakness in internal controls over major program compliance. Major Program ALN: 14.155 Major Program Name: Mortgage Insurance for the Purchase of Refinancing of Multifamily Housing Projects Criteria: According to 2 CFR Part 200 (Uniform Guidance), specifically 2 CFR §200.303, non-federal entities are required to establish and maintain effective internal control over federal awards. This includes written policies and procedures to ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our review of Caspian Housing Corporation’s administration of its major federal program, we noted that the entity lacks formal, written policies and procedures governing key compliance areas. The absence of such written policies and procedures increases the risk of noncompliance with HUD program requirements and may result in inefficiencies, errors, or potential misuse of federal funds. Cause: Caspian Housing Corporation has not developed or implemented written policies and procedures in accordance with federal requirements. Effect: Without documented policies and procedures, Caspian Housing Corporation is at risk of noncompliance with federal requirements, which could lead to financial penalties, questioned costs, or potential loss of federal funding. Recommendation: We recommend that Caspian Housing Corporation develop and implement comprehensive written policies and procedures that align with Uniform Guidance requirements. Management Response: Management is in agreement with the recommendations and will work to implement the required policies and procedures in accordance with Uniform Guidance requirements during 2025. Auditor Non-compliance Code: S - internal control deficiencies