Audit 357858

FY End
2024-12-31
Total Expended
$7.64M
Findings
2
Programs
2
Organization: Chatham Park South Cooperative (IL)
Year: 2024 Accepted: 2025-06-02
Auditor: Wipfli LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
563597 2024-001 Significant Deficiency - N
1140039 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $5.48M Yes 1
14.195 Section 8 Housing Assistance Payments Program $2.16M Yes 0

Contacts

Name Title Type
PK5JY22JWNK3 Takisha Artis Auditee
8158069990 Alex Pekler Auditor
No contacts on file

Notes to SEFA

Title: Non-Cash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Chatham Park South Cooperative Apartments HUD Project No. 071-EE240, 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 the Title 2 U.S. Code of Federal Regulations (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 Chatham Park South Cooperative Apartments HUD Project No. 071-EE240, it is not intended to and does not present the financial position, changes in net deficit or cash flows of Chatham Park South Cooperative Apartments. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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. Pass-through entity identifying numbers are presented where available. The Cooperative has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Cooperative did not receive any non-cash assistance.
Title: Insurance Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Chatham Park South Cooperative Apartments HUD Project No. 071-EE240, 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 the Title 2 U.S. Code of Federal Regulations (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 Chatham Park South Cooperative Apartments HUD Project No. 071-EE240, it is not intended to and does not present the financial position, changes in net deficit or cash flows of Chatham Park South Cooperative Apartments. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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. Pass-through entity identifying numbers are presented where available. The Cooperative has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Chatham Park South Cooperative Apartments, HUD Project No. 071-EH143, did not receive any insurance assistance.
Title: Loan and Loan Guarantees Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Chatham Park South Cooperative Apartments HUD Project No. 071-EE240, 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 the Title 2 U.S. Code of Federal Regulations (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 Chatham Park South Cooperative Apartments HUD Project No. 071-EE240, it is not intended to and does not present the financial position, changes in net deficit or cash flows of Chatham Park South Cooperative Apartments. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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. Pass-through entity identifying numbers are presented where available. The Cooperative has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Chatham Park South Cooperative, HUD Project No. 071-EH1431 did not receive any additional loans or loan guarantees for the year ended December 31, 2024. Loans outstanding at the end of 2024 were $5,283,294.
Title: Awards for Sub-Recipients Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Chatham Park South Cooperative Apartments HUD Project No. 071-EE240, 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 the Title 2 U.S. Code of Federal Regulations (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 Chatham Park South Cooperative Apartments HUD Project No. 071-EE240, it is not intended to and does not present the financial position, changes in net deficit or cash flows of Chatham Park South Cooperative Apartments. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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. Pass-through entity identifying numbers are presented where available. The Cooperative has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Cooperative does not have sub-recipients of federal awards.

Finding Details

Statement of Condition: During the year under audit, the replacement reserves were underfunded by $5,154. Criteria: The Cooperative is required by HUD regulations to make monthly deposits into their replacement reserve. These deposits are essential to ensure that funds are available for major repairs and replacements, maintaining the property's condition and value. Effect: An underfunded replacement reserve can have adverse effects on the Cooperative. Cause: The lander was not notified of the increase in the replacement reserve requirement, leading to the shortfall in the monthly deposits. Recommendation: It is recommended that the Cooperative ensures the replacement reserve is appropriately funded each month to avoid future underfunding. Response: As of March 2025, the Cooperative has transferred the necessary funds to adequately cover the replacement reserve shortfall.
Statement of Condition: During the year under audit, the replacement reserves were underfunded by $5,154. Criteria: The Cooperative is required by HUD regulations to make monthly deposits into their replacement reserve. These deposits are essential to ensure that funds are available for major repairs and replacements, maintaining the property's condition and value. Effect: An underfunded replacement reserve can have adverse effects on the Cooperative. Cause: The lander was not notified of the increase in the replacement reserve requirement, leading to the shortfall in the monthly deposits. Recommendation: It is recommended that the Cooperative ensures the replacement reserve is appropriately funded each month to avoid future underfunding. Response: As of March 2025, the Cooperative has transferred the necessary funds to adequately cover the replacement reserve shortfall.