Audit 358457

FY End
2024-12-31
Total Expended
$3.21M
Findings
2
Programs
1
Organization: College Town Apartments (CA)
Year: 2024 Accepted: 2025-06-10
Auditor: Cohnreznick LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
564312 2024-001 Significant Deficiency - N
1140754 2024-001 Significant Deficiency - N

Programs

Contacts

Name Title Type
NWCTS3A97GX7 Trish Gaiduk Auditee
9167529500 Lisa Schoepflin 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, as applicable, the cost principles contained in the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: College Town Apartments has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of College Town Apartments, HUD Project No. 136-11047, 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 College Town Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of College Town Apartments. For the year ended December 31, 2024, no awards were passed through to subrecipients.
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, as applicable, the cost principles contained in the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: College Town Apartments has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance.
Title: Note 3 - Indirect cost rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: College Town Apartments has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. College Town Apartments has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4 - 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, as applicable, the cost principles contained in the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: College Town Apartments has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. College Town Apartments has received a U.S. Department of Housing and Urban Development direct loan under Section 223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. College Town Apartments received no additional loans during the year. The balance of the loan outstanding at December 31, 2024 consists of: CFDA Number Program Name Outstanding Balance at December 31, 2024 14.155 Section 223(f) - Insured Loan $ 3,069,485

Finding Details

Criteria HUD regulations require the project's management agent to have fidelity bond coverage equal to the greater of $50,000 or the value of two months gross potential rent. If the policy covers more than one project, this minimum must be computed using the project with the highest gross potential rent. Cause Management was unaware of the required minimum coverage. Effect or Potential Effect The cost of the assistance may be disallowed. Recommendation Management should obtain fidelity coverage as required by HUD regulations immediately. Auditor Noncompliance Code: Section N - Special Tests and Provisions Views of Responsible Officials Auditee has submitted the application to update/increase the Fidelity Bond Coverage to $500,000 through the insurance broker. Coverage is expected to be changed by 4-1-25.
Criteria HUD regulations require the project's management agent to have fidelity bond coverage equal to the greater of $50,000 or the value of two months gross potential rent. If the policy covers more than one project, this minimum must be computed using the project with the highest gross potential rent. Cause Management was unaware of the required minimum coverage. Effect or Potential Effect The cost of the assistance may be disallowed. Recommendation Management should obtain fidelity coverage as required by HUD regulations immediately. Auditor Noncompliance Code: Section N - Special Tests and Provisions Views of Responsible Officials Auditee has submitted the application to update/increase the Fidelity Bond Coverage to $500,000 through the insurance broker. Coverage is expected to be changed by 4-1-25.