Audit 54429

FY End
2022-06-30
Total Expended
$4.98M
Findings
8
Programs
4
Organization: The Pines Housing, Inc. (OR)
Year: 2022 Accepted: 2023-05-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
62792 2022-001 Significant Deficiency Yes P
62793 2022-001 Significant Deficiency Yes P
62794 2022-002 Significant Deficiency - L
62795 2022-002 Significant Deficiency - L
639234 2022-001 Significant Deficiency Yes P
639235 2022-001 Significant Deficiency Yes P
639236 2022-002 Significant Deficiency - L
639237 2022-002 Significant Deficiency - L

Contacts

Name Title Type
ZJ55GKXCCKA5 Tanja Lux Auditee
5035480206 Mike Curto Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes theexpenditures of The Pines Housing, Inc. (an Oregon non-profit public benefit Organization) underprograms of the federal government for the year ended June 30, 2022. The information in the Scheduleis presented in accordance with the requirements of Uniform Administrative Requirements, CostPrinciples and Audit Requirements for Federal Awards. Therefore, some amounts presented in theSchedule may differ from amounts presented in, or used in the preparation of the basic financialstatements.For purposes of the Schedule, federal awards include all sub awards to the Organization by nonfederalorganizations pursuant to federal grants, contract and similar agreements. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in OMB Circular A-122, CostPrinciples for Non-Profit Organizations wherein certain types of expenditures are not allowed.Catalogue of Federal Domestic Assistance numbers (AL No.) are provided when available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The following represents the amount of outstanding loans identified by AL No. The Organization 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. The Organization received no additional loans during the year ended June 30, 2022. The loan outstanding at June 30, 2022 consists of: AL No. 14.135 Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families Elderly, Market Interest Rate Total outstanding as of June 30, 2022 was $ 1,819,322

Finding Details

Condition ? The security deposit liabilities of $20,052 exceeded the balance in the security deposit bank account of $18,496. There is a security deposit funding deficit of $1,556, resulting in an instance of noncompliance. (Questioned Costs ? $1,556) Criteria ? Under the HUD regulatory agreement, any funds collected as security deposits should be kept separate and apart from all other funds in an amount which shall at all times be equal to or exceed the aggregate balance of all outstanding obligations under said account. Cause ? The Organization did not ensure that tenant security deposit funds were not commingled with operating funds in accordance with the HUD regulatory agreement. Effect ? There is a possibility that, under the regulatory agreement, HUD shall invoke any remedies available by law to redress the breach or compel compliance by the Organization with the security deposit requirement. Recommendation ? We recommend that the Organization identify and implement policies and procedures to ensure that all security deposits received are directly deposited in the separate tenant deposit bank account in accordance with the HUD regulatory agreement. Auditor noncompliance code ? M ? Security deposits Reporting views of responsible officials ? The management agent, Quantum, is responsible for reconciling the security liability account with the security deposit funding. The Asset Management Director, Holly Vander Schaaf is responsible for reviewing the security deposit handling and accounting on a monthly basis. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations ? Agree Completion date or proposed completion date - May 12, 2023 Actions taken or planned on the finding - The Organization will identify and implement policies and procedures to ensure that the security deposit bank account balance will at all times be equal to or exceed the aggregate balance of all outstanding security deposit liabilities.
Condition ? The security deposit liabilities of $20,052 exceeded the balance in the security deposit bank account of $18,496. There is a security deposit funding deficit of $1,556, resulting in an instance of noncompliance. (Questioned Costs ? $1,556) Criteria ? Under the HUD regulatory agreement, any funds collected as security deposits should be kept separate and apart from all other funds in an amount which shall at all times be equal to or exceed the aggregate balance of all outstanding obligations under said account. Cause ? The Organization did not ensure that tenant security deposit funds were not commingled with operating funds in accordance with the HUD regulatory agreement. Effect ? There is a possibility that, under the regulatory agreement, HUD shall invoke any remedies available by law to redress the breach or compel compliance by the Organization with the security deposit requirement. Recommendation ? We recommend that the Organization identify and implement policies and procedures to ensure that all security deposits received are directly deposited in the separate tenant deposit bank account in accordance with the HUD regulatory agreement. Auditor noncompliance code ? M ? Security deposits Reporting views of responsible officials ? The management agent, Quantum, is responsible for reconciling the security liability account with the security deposit funding. The Asset Management Director, Holly Vander Schaaf is responsible for reviewing the security deposit handling and accounting on a monthly basis. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations ? Agree Completion date or proposed completion date - May 12, 2023 Actions taken or planned on the finding - The Organization will identify and implement policies and procedures to ensure that the security deposit bank account balance will at all times be equal to or exceed the aggregate balance of all outstanding security deposit liabilities.
Condition ? As of the May 12, 2023, the Organization has not submitted the reporting package and data collection form to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2022, which is nine months after the end of the audit period. Criteria ? The Uniform Guidance, 2 CF Section 200.512(a) requires the reporting package and data collection form to be submitted to the FAC by the earlier of 30 calendar days after the report is issued or nine months after the end of the audit period. Cause ? The Organization records were not completed on time to meet the criteria regarding the reporting package and data collection submission to submit within nine months after the end of the audit period. Effect ? As a result of this condition, the Organization will submit the reporting package and data collection form after the deadline. Recommendation ? We recommend that the Organization assign personnel to monitor the records to be completed timely to meet the requirement of the FAC submission process and ensure the reporting package and data collection form are submitted on time on an ongoing basis. Auditor noncompliance code ? Z ? other ? late submission to FAC Reporting views of responsible officials - The management agent, Quantum, is responsible for completing the annual close in a timely manner so that the audit process can begin. The Asset Management Director, Holly Vander Schaaf is responsible for monitoring the annual close process to ensure its timeliness and completeness. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations ? Agree Completion date or proposed completion date - May 12, 2023 Actions taken or planned on the finding ? The Organization will assign personnel to monitor the records and to ensure they are completed timely to meet the requirement of the FAC submission process and ensure the reporting package and data collection form are submitted on time on an ongoing basis.
Condition ? As of the May 12, 2023, the Organization has not submitted the reporting package and data collection form to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2022, which is nine months after the end of the audit period. Criteria ? The Uniform Guidance, 2 CF Section 200.512(a) requires the reporting package and data collection form to be submitted to the FAC by the earlier of 30 calendar days after the report is issued or nine months after the end of the audit period. Cause ? The Organization records were not completed on time to meet the criteria regarding the reporting package and data collection submission to submit within nine months after the end of the audit period. Effect ? As a result of this condition, the Organization will submit the reporting package and data collection form after the deadline. Recommendation ? We recommend that the Organization assign personnel to monitor the records to be completed timely to meet the requirement of the FAC submission process and ensure the reporting package and data collection form are submitted on time on an ongoing basis. Auditor noncompliance code ? Z ? other ? late submission to FAC Reporting views of responsible officials - The management agent, Quantum, is responsible for completing the annual close in a timely manner so that the audit process can begin. The Asset Management Director, Holly Vander Schaaf is responsible for monitoring the annual close process to ensure its timeliness and completeness. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations ? Agree Completion date or proposed completion date - May 12, 2023 Actions taken or planned on the finding ? The Organization will assign personnel to monitor the records and to ensure they are completed timely to meet the requirement of the FAC submission process and ensure the reporting package and data collection form are submitted on time on an ongoing basis.
Condition ? The security deposit liabilities of $20,052 exceeded the balance in the security deposit bank account of $18,496. There is a security deposit funding deficit of $1,556, resulting in an instance of noncompliance. (Questioned Costs ? $1,556) Criteria ? Under the HUD regulatory agreement, any funds collected as security deposits should be kept separate and apart from all other funds in an amount which shall at all times be equal to or exceed the aggregate balance of all outstanding obligations under said account. Cause ? The Organization did not ensure that tenant security deposit funds were not commingled with operating funds in accordance with the HUD regulatory agreement. Effect ? There is a possibility that, under the regulatory agreement, HUD shall invoke any remedies available by law to redress the breach or compel compliance by the Organization with the security deposit requirement. Recommendation ? We recommend that the Organization identify and implement policies and procedures to ensure that all security deposits received are directly deposited in the separate tenant deposit bank account in accordance with the HUD regulatory agreement. Auditor noncompliance code ? M ? Security deposits Reporting views of responsible officials ? The management agent, Quantum, is responsible for reconciling the security liability account with the security deposit funding. The Asset Management Director, Holly Vander Schaaf is responsible for reviewing the security deposit handling and accounting on a monthly basis. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations ? Agree Completion date or proposed completion date - May 12, 2023 Actions taken or planned on the finding - The Organization will identify and implement policies and procedures to ensure that the security deposit bank account balance will at all times be equal to or exceed the aggregate balance of all outstanding security deposit liabilities.
Condition ? The security deposit liabilities of $20,052 exceeded the balance in the security deposit bank account of $18,496. There is a security deposit funding deficit of $1,556, resulting in an instance of noncompliance. (Questioned Costs ? $1,556) Criteria ? Under the HUD regulatory agreement, any funds collected as security deposits should be kept separate and apart from all other funds in an amount which shall at all times be equal to or exceed the aggregate balance of all outstanding obligations under said account. Cause ? The Organization did not ensure that tenant security deposit funds were not commingled with operating funds in accordance with the HUD regulatory agreement. Effect ? There is a possibility that, under the regulatory agreement, HUD shall invoke any remedies available by law to redress the breach or compel compliance by the Organization with the security deposit requirement. Recommendation ? We recommend that the Organization identify and implement policies and procedures to ensure that all security deposits received are directly deposited in the separate tenant deposit bank account in accordance with the HUD regulatory agreement. Auditor noncompliance code ? M ? Security deposits Reporting views of responsible officials ? The management agent, Quantum, is responsible for reconciling the security liability account with the security deposit funding. The Asset Management Director, Holly Vander Schaaf is responsible for reviewing the security deposit handling and accounting on a monthly basis. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations ? Agree Completion date or proposed completion date - May 12, 2023 Actions taken or planned on the finding - The Organization will identify and implement policies and procedures to ensure that the security deposit bank account balance will at all times be equal to or exceed the aggregate balance of all outstanding security deposit liabilities.
Condition ? As of the May 12, 2023, the Organization has not submitted the reporting package and data collection form to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2022, which is nine months after the end of the audit period. Criteria ? The Uniform Guidance, 2 CF Section 200.512(a) requires the reporting package and data collection form to be submitted to the FAC by the earlier of 30 calendar days after the report is issued or nine months after the end of the audit period. Cause ? The Organization records were not completed on time to meet the criteria regarding the reporting package and data collection submission to submit within nine months after the end of the audit period. Effect ? As a result of this condition, the Organization will submit the reporting package and data collection form after the deadline. Recommendation ? We recommend that the Organization assign personnel to monitor the records to be completed timely to meet the requirement of the FAC submission process and ensure the reporting package and data collection form are submitted on time on an ongoing basis. Auditor noncompliance code ? Z ? other ? late submission to FAC Reporting views of responsible officials - The management agent, Quantum, is responsible for completing the annual close in a timely manner so that the audit process can begin. The Asset Management Director, Holly Vander Schaaf is responsible for monitoring the annual close process to ensure its timeliness and completeness. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations ? Agree Completion date or proposed completion date - May 12, 2023 Actions taken or planned on the finding ? The Organization will assign personnel to monitor the records and to ensure they are completed timely to meet the requirement of the FAC submission process and ensure the reporting package and data collection form are submitted on time on an ongoing basis.
Condition ? As of the May 12, 2023, the Organization has not submitted the reporting package and data collection form to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2022, which is nine months after the end of the audit period. Criteria ? The Uniform Guidance, 2 CF Section 200.512(a) requires the reporting package and data collection form to be submitted to the FAC by the earlier of 30 calendar days after the report is issued or nine months after the end of the audit period. Cause ? The Organization records were not completed on time to meet the criteria regarding the reporting package and data collection submission to submit within nine months after the end of the audit period. Effect ? As a result of this condition, the Organization will submit the reporting package and data collection form after the deadline. Recommendation ? We recommend that the Organization assign personnel to monitor the records to be completed timely to meet the requirement of the FAC submission process and ensure the reporting package and data collection form are submitted on time on an ongoing basis. Auditor noncompliance code ? Z ? other ? late submission to FAC Reporting views of responsible officials - The management agent, Quantum, is responsible for completing the annual close in a timely manner so that the audit process can begin. The Asset Management Director, Holly Vander Schaaf is responsible for monitoring the annual close process to ensure its timeliness and completeness. Concur or do not concur with this finding - Concur Agree or disagree with auditor recommendations ? Agree Completion date or proposed completion date - May 12, 2023 Actions taken or planned on the finding ? The Organization will assign personnel to monitor the records and to ensure they are completed timely to meet the requirement of the FAC submission process and ensure the reporting package and data collection form are submitted on time on an ongoing basis.