Audit 365715

FY End
2024-12-31
Total Expended
$4.36M
Findings
4
Programs
2
Year: 2024 Accepted: 2025-09-05
Auditor: Maner Costerisan

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
575723 2024-001 Significant Deficiency - N
575724 2024-001 Significant Deficiency - N
1152165 2024-001 Significant Deficiency - N
1152166 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $306,580 Yes 1
14.195 Section 8 Housing Assistance Payments Program $154,140 - 0

Contacts

Name Title Type
PKH2WDPFDPL6 Elliott J. Broderick, CPA Auditee
8104225358 Keith Pfeifle, CPA 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. Oak Street Senior Apartments, Inc. 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: Oak Street Senior Apartments, Inc. 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 Oak Street Senior Apartments, Inc. 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 Oak Street Senior Apartments, Inc., it is not intended to and does not present the financial position, changes in net deficit or cash flows of Oak Street Senior Apartments, Inc.
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. Oak Street Senior Apartments, Inc. 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: Oak Street Senior Apartments, Inc. 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. Oak Street Senior Apartments, Inc. 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. Oak Street Senior Apartments, Inc. 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: Oak Street Senior Apartments, Inc. 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. Oak Street Senior Apartments, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The capital advance is included in the federal expenditures presented in the Schedule. Oak Street Senior Apartments, Inc. received no additional capital advances, or loans, during the year. The balances of the capital advance and DPG grant at December 31, 2024, were $3,894,600 and $306,580, respectively.

Finding Details

Finding 2024-001 - Significant deficiency in Internal Control over financial reporting due to not making the required replacement reserve deposits. Federal Program: Supportive Housing for the Elderly (Section 202) ALN: 14.157 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Criteria: Corporation management is responsible for maintaining effective internal controls over financial reporting to ensure the accurate and timely submission of financial transactions, including monthly replacement reserve deposits. Condition: During the 2024 audit, it was noted that the property did not make all of the required monthly replacement reserve deposits. Questioned Costs: $24,665 Cause: The significant deficiency was due to lack of internal controls over the financial reporting process related to the timely deposits to the replacement reserve account. Effect: As a result of the significant deficiency the 2024 replacement reserve account was not properly funded. Recommendation: The Corporation should ensure that there are proper internal controls in place over financial reporting to ensure accurate and timely submission of financial transactions, including monthly replacement reserve deposits. Management Comments: We agree with the facts and circumstances of this finding and will increase the internal controls over financial reporting. The replacement reserve account was fully funded in 2025. Auditor Noncompliance Code: N - Reserve for Replacement Deposits
Finding 2024-001 - Significant deficiency in Internal Control over financial reporting due to not making the required replacement reserve deposits. Federal Program: Supportive Housing for the Elderly (Section 202) ALN: 14.157 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Criteria: Corporation management is responsible for maintaining effective internal controls over financial reporting to ensure the accurate and timely submission of financial transactions, including monthly replacement reserve deposits. Condition: During the 2024 audit, it was noted that the property did not make all of the required monthly replacement reserve deposits. Questioned Costs: $24,665 Cause: The significant deficiency was due to lack of internal controls over the financial reporting process related to the timely deposits to the replacement reserve account. Effect: As a result of the significant deficiency the 2024 replacement reserve account was not properly funded. Recommendation: The Corporation should ensure that there are proper internal controls in place over financial reporting to ensure accurate and timely submission of financial transactions, including monthly replacement reserve deposits. Management Comments: We agree with the facts and circumstances of this finding and will increase the internal controls over financial reporting. The replacement reserve account was fully funded in 2025. Auditor Noncompliance Code: N - Reserve for Replacement Deposits
Finding 2024-001 - Significant deficiency in Internal Control over financial reporting due to not making the required replacement reserve deposits. Federal Program: Supportive Housing for the Elderly (Section 202) ALN: 14.157 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Criteria: Corporation management is responsible for maintaining effective internal controls over financial reporting to ensure the accurate and timely submission of financial transactions, including monthly replacement reserve deposits. Condition: During the 2024 audit, it was noted that the property did not make all of the required monthly replacement reserve deposits. Questioned Costs: $24,665 Cause: The significant deficiency was due to lack of internal controls over the financial reporting process related to the timely deposits to the replacement reserve account. Effect: As a result of the significant deficiency the 2024 replacement reserve account was not properly funded. Recommendation: The Corporation should ensure that there are proper internal controls in place over financial reporting to ensure accurate and timely submission of financial transactions, including monthly replacement reserve deposits. Management Comments: We agree with the facts and circumstances of this finding and will increase the internal controls over financial reporting. The replacement reserve account was fully funded in 2025. Auditor Noncompliance Code: N - Reserve for Replacement Deposits
Finding 2024-001 - Significant deficiency in Internal Control over financial reporting due to not making the required replacement reserve deposits. Federal Program: Supportive Housing for the Elderly (Section 202) ALN: 14.157 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Criteria: Corporation management is responsible for maintaining effective internal controls over financial reporting to ensure the accurate and timely submission of financial transactions, including monthly replacement reserve deposits. Condition: During the 2024 audit, it was noted that the property did not make all of the required monthly replacement reserve deposits. Questioned Costs: $24,665 Cause: The significant deficiency was due to lack of internal controls over the financial reporting process related to the timely deposits to the replacement reserve account. Effect: As a result of the significant deficiency the 2024 replacement reserve account was not properly funded. Recommendation: The Corporation should ensure that there are proper internal controls in place over financial reporting to ensure accurate and timely submission of financial transactions, including monthly replacement reserve deposits. Management Comments: We agree with the facts and circumstances of this finding and will increase the internal controls over financial reporting. The replacement reserve account was fully funded in 2025. Auditor Noncompliance Code: N - Reserve for Replacement Deposits