FAC Explorer

Audit 53437

FY End
2022-06-30
Total Expended
$3.89M
Findings
4
Programs
1
Organization: Chippewa Lutheran Housing Corporation (PA)
Year: 2022 Accepted: 2023-02-15
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
40147 2022-001 Significant Deficiency - P
40148 2022-002 Significant Deficiency - L
616589 2022-001 Significant Deficiency - P
616590 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $3.89M Yes 2

Contacts

Name Title Type
DUAEHGJ9GGQ5 Jeffery Carraway Auditee
7247422246 Ryan Santarella Auditor
No contacts on file

Notes to SEFA

Title: HUD CAPITAL ADVANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of Chippewa Lutheran Housing Corporation dba: Lutheran Village atChippewa (the Corporation) under programs of the federal government for the year endedJune 30, 2022. The information in this Schedule is presented in accordance with therequirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (Uniform Guidance). Because the Schedulepresents only a selected portion of the operations of the Corporation, it is not intended toand does not present the financial position, changes in net assets, or cash flows of theCorporation. Expenditures reported on the Schedule are reported on the accrual basis of accounting.Such expenditures are recognized following, as applicable, either the cost principles inOMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principlescontained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The balance of the HUD capital advance outstanding at the beginning of the year is includedin the federal expenditures presented in the Schedule. There were no additionalHUD advances during the year. The balance of the HUD advance outstanding at June 30,2022 was $3,824,000.

Finding Details

Finding 2022-001
2022-001 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Supportive Housing for the Elderly Section 202 CFDA Number: 14.157 Award Period: Year Ended June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Expired Project Rental Assistance Contract (PRAC). Condition: The Corporation did not renew the PRAC timely. Questioned costs: None. Context: The PRAC expired September 30, 2021, and was not renewed until February 14, 2022. Cause: Due to circumstances related to the COVID-19 Public Health Emergency, the Corporation did not renew the contract timely. Effect: A PRAC is required for Housing Assistance Payments. Recommendation: The Corporation should ensure the PRAC is renewed on a timely basis annually. Views of Responsible Officials and Planned Corrective Actions: Managements acknowledges this finding and is taking steps to correct. Management has counseled HUD building management on the need for timely submissions of proposed budgets and contract completion. A master schedule has been set up and all budget submissions will now be reviewed by the Finance Department prior to submission.
Finding 2022-002
2022-002 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Supportive Housing for the Elderly Section 202 CFDA Number: 14.157 Award Period: Year Ended June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Unapproved replacement reserve withdrawal. Condition: The Corporation mistakenly withdrew an unapproved amount from the replacement reserve account in February 2022. Questioned costs: $7,796. Context: Upon receiving proper HUD withdrawal approval, the Corporation mistakenly duplicated the amount of the withdrawal. Upon discover of this mistake, these funds were deposited back into the replacement reserve account in February 2022. Cause: Due to circumstances related to the COVID-19 Public Health Emergency, this was an oversight by the Corporation. Effect: Formal HUD approval is required for all replacement reserve account withdrawals. Recommendation: The Corporation should ensure all replacement reserve amounts are properly reviewed and approved prior to withdrawal occurs. Views of Responsible Officials and Planned Corrective Actions: Managements acknowledges this finding and is taking steps to correct. Management has counseled HUD building management on the need for appropriate process for handling of the replacement reserve account funds in the future.
Finding 2022-001
2022-001 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Supportive Housing for the Elderly Section 202 CFDA Number: 14.157 Award Period: Year Ended June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Expired Project Rental Assistance Contract (PRAC). Condition: The Corporation did not renew the PRAC timely. Questioned costs: None. Context: The PRAC expired September 30, 2021, and was not renewed until February 14, 2022. Cause: Due to circumstances related to the COVID-19 Public Health Emergency, the Corporation did not renew the contract timely. Effect: A PRAC is required for Housing Assistance Payments. Recommendation: The Corporation should ensure the PRAC is renewed on a timely basis annually. Views of Responsible Officials and Planned Corrective Actions: Managements acknowledges this finding and is taking steps to correct. Management has counseled HUD building management on the need for timely submissions of proposed budgets and contract completion. A master schedule has been set up and all budget submissions will now be reviewed by the Finance Department prior to submission.
Finding 2022-002
2022-002 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Supportive Housing for the Elderly Section 202 CFDA Number: 14.157 Award Period: Year Ended June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Unapproved replacement reserve withdrawal. Condition: The Corporation mistakenly withdrew an unapproved amount from the replacement reserve account in February 2022. Questioned costs: $7,796. Context: Upon receiving proper HUD withdrawal approval, the Corporation mistakenly duplicated the amount of the withdrawal. Upon discover of this mistake, these funds were deposited back into the replacement reserve account in February 2022. Cause: Due to circumstances related to the COVID-19 Public Health Emergency, this was an oversight by the Corporation. Effect: Formal HUD approval is required for all replacement reserve account withdrawals. Recommendation: The Corporation should ensure all replacement reserve amounts are properly reviewed and approved prior to withdrawal occurs. Views of Responsible Officials and Planned Corrective Actions: Managements acknowledges this finding and is taking steps to correct. Management has counseled HUD building management on the need for appropriate process for handling of the replacement reserve account funds in the future.