FAC Explorer

Audit 381763

FY End
2025-06-30
Total Expended
$2.58M
Findings
2
Programs
2
Organization: Chehalem Valley Housing Corporation (OR)
Year: 2025 Accepted: 2026-01-14
Auditor: PLATFORM CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1169068 2025-001 Material Weakness Yes N
1169069 2025-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $1.69M Yes 2
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $895,782 Yes 0

Contacts

Name Title Type
KRYEZQMLA2C9 Kathy Schlotfeldt Auditee
5034722248 Greg Montplaisir Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Chehalem Valley Housing Corporation – Springbrook Place (the “Company”) and is presented on the accrual basis of accounting. 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Company, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company.
The Company has received a loan funded by programs of U.S. Department of Housing and Urban Development. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Such balance has been included as net assets with donor restrictions in the financial statements of the Company as of June 30, 2025 since the likelihood of repayment is remote. The Company received no additional loans during the year ended June 30, 2025. The balance of the loan outstanding at June 30, 2025 consists of: Federal Assistance Listing Number Program Name Outstanding Balance 14.181 Supportive Housing for Persons with Disabilities (Section 811) $1,637,500

Finding Details

Finding 2025-001
Finding No. - 2025-001 - Federal Assistance Listing Number 14.181 - Supportive Housing for Persons with Disabilities (Section 811) Type of Finding – Federal Award Finding Finding Resolution Status – Resolved Criteria – Under the terms of the Regulatory Agreement with HUD, the Project is required to make monthly deposits to the replacement reserve account. The required monthly deposit amount was $612 per month through January 2025 and increased to $647 per month beginning February 2025. Statement of Condition – The Project did not make the monthly deposits of $612 from September to December 2024 and $647 from February to March 2025. The total delinquent deposit amount at June 30, 2025 was $3,742. Cause – The delinquent deposits to the replacement reserve at June 30, 2025 were due to cash flow shortage. Effect or Potential Effect – The Project was not in compliance with the terms of the Regulatory Agreement with HUD. Auditor Non-Compliance Code – N – Reserve for replacement deposits. Questioned Costs – $3,742 Reporting Views of Responsible Officials – Management agrees with the finding and is implementing procedures to correct this which is further discussed in the Correction Action Plan. Recommendation – We recommend the Project catch up on the delinquent deposits as soon as operating cash is available. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations – We agree with auditee’s response. Response Indicator – Agree Completion Date – September 19, 2025 Response – The Project will make catch-up deposits when operating cash is available.
Finding 2025-002
Finding No. - 2025-002 - Federal Assistance Listing Number 14.181 - Supportive Housing for Persons with Disabilities (Section 811) Type of Finding – Federal Award Finding Finding Resolution Status – Resolved Criteria – Project funds must be used for the operation of the project (including required insurance coverage) and to make required deposits to the replacement reserve and residual receipts account. Statement of Condition – During the year ended June 30, 2024, the Project was advanced $4,000 from the organizing sponsor to be used to pay operating expenses of the Project. The advance is payable in four installments of $1,000. The Project made the remaining two of the four installment repayments to the organizing sponsor during the year ended June 30, 2025. The third installment repayment was made without HUD approval in advance. Cause – Such advance was necessary as the Project experienced a cash flow shortage during the year. However, it was an oversight of management that the repayments were made without HUD approval in advance. Effect or Potential Effect – The Project was not in compliance with the terms of the Regulatory Agreement with HUD. Auditor Non-Compliance Code – H – Unauthorized distribution of project assets. Questioned Costs – $1,000 Reporting Views of Responsible Officials – Management agrees with the finding and is implementing procedures to correct this which is further discussed in the Correction Action Plan. Recommendation – Management should ensure that any distributions of project assets are approved by HUD in advance. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations – We agree with auditee’s response. Response Indicator – Agree Completion Date – March 26, 2025 Response – Management will ensure that any distributions of project assets are approved by HUD in advance.