Audit 46004

FY End
2022-12-31
Total Expended
$2.29M
Findings
2
Programs
2
Organization: Rosamond Hills, Inc. (CA)
Year: 2022 Accepted: 2023-04-09

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
42617 2022-001 Significant Deficiency - N
619059 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $1.97M Yes 1
10.427 Rural Rental Assistance Payments $317,936 - 0

Contacts

Name Title Type
S551UNWW7D33 Cameo Townzen Auditee
5308232477 Debbi Christensen Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances 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. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. Rosamond Hills Inc. has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% de minimis reimbursement rate. RURAL RENTAL HOUSING LOANS (10.415) - Balances outstanding at the end of the audit period were 1925635.
Title: NOTE A- 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. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. Rosamond Hills Inc. has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% de minimis reimbursement rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Rosamond Hills Inc, Case No. 04-015-647929361, under programs of the federal government for the year ended December 31, 2022. 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 the selected portion of the operations of Rosamond Hills Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Rosamond Hills Inc.

Finding Details

Finding No. 2022-001 Type of Finding: Noncompliance Finding Finding Resolution Status: Open Questioned Costs: None Noncompliance Information: 1 instance of noncompliance Auditor Noncompliance Code: B ? Replacement Reserve Statement of Condition The replacement reserve cash account was underfunded by $1,792 at December 31, 2022. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation transfer $1,792 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account is underfunded and will transfer $1,792 to the replacement reserve cash account.
Finding No. 2022-001 Type of Finding: Noncompliance Finding Finding Resolution Status: Open Questioned Costs: None Noncompliance Information: 1 instance of noncompliance Auditor Noncompliance Code: B ? Replacement Reserve Statement of Condition The replacement reserve cash account was underfunded by $1,792 at December 31, 2022. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation transfer $1,792 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account is underfunded and will transfer $1,792 to the replacement reserve cash account.