FAC Explorer

Audit 55446

FY End
2022-12-31
Total Expended
$1.73M
Findings
6
Programs
1
Organization: Cliff View Village Ii, Inc., 112ee040 (TX)
Year: 2022 Accepted: 2023-09-28
Auditor: M Group LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59921 2022-001 Significant Deficiency - N
59922 2022-002 - - N
59923 2022-003 Significant Deficiency - L
636363 2022-001 Significant Deficiency - N
636364 2022-002 - - N
636365 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.65M Yes 3

Contacts

Name Title Type
EV4MYZW445G7 Connie Quillen Auditee
9726433200 Michael Martin Auditor
No contacts on file

Notes to SEFA

Title: Note 4: Capital Advance Balance Accounting Policies: Note 1: Basis of Presentation: This schedule of expenditures of federal awards includes the federal award activity of Cliff View Village II, Inc. under programs of the federal government for the year ended December 31, 2022. The information in thisschedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost, Principles, and Audits for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Cliff View Village II, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cliff View Village II, Inc.Note 2: Summary of Significant Accounting Policies: Expenditures reporting 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: Note 3: Indirect Cost Rate: Cliff View Village II, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Cliff View Village II, Inc's capital advance balance outstanding as of December 31, 2022 was $1,652,533 and is included in the federal expenditures presented in the schedule.

Finding Details

Finding 2022-001
Finding #2022-001: Section 202 Capital Advance, CFDA 14.157 Condition: The Company made 6 monthly deposits into the replacement reserve account. Criteria: The HUD regulatory agreement requires the Company to 12 monthly deposits into the replacement reserve account. Effect: Replacement reserve account is underfunded and is in violation of its Regulatory Agreement. Questioned Cost: $4,366 Cause: Operating costs Recommendation: We recommend the Company deposit the required monthly deposits into the replacement reserve account and follow the terms of the regulatory agreement. Auditor?s Comment: The Company does not have the funds to correct the underfunding. When funds become available, the Company will make a deposit into the replacement reserve account.
Finding 2022-002
Finding #2022-002: Section 202 Capital Advance, CFDA 14.157 Condition: Under terms of the HUD regulatory agreement, the Company is required to deposit excess rent into the residual receipt account. The Company did not deposit excess rent of $120. Criteria: The HUD regulatory agreement requires the Company to deposits excess rent into the residual receipt account. Effect: The Company is in violation of its Regulatory Agreement. Questioned Cost: $120 Cause: Oversight Recommendation: We recommend the Company deposit $120 into the residual receipts account. Further, we recommend the Company review the regulatory agreement to ensure compliance. Auditor?s Comment: On March 28, 2023, the Company deposited $120 into the residual receipts account. Finding 2022-002 Cleared.
Finding 2022-003
Finding #2022-003: Section 202 Capital Advance, CFDA 14.157 Condition: The audited financial statements were not entered into the FASSUB system timely. Criteria: The HUD regulatory agreement requires the audited financial statements to be prepared in accordance with GAAP and filed into the FASSUB system within 90 days of year end. Effect: The Company is in violation of the compliance requirement of its major federal program. Questioned Cost: $0 Cause: Insufficient funds to pay prior year audit fees. Recommendation: We recommend the audited financial statements be submitted into the FASSUB system within 90 days of year end. Auditor?s Comment: HUD approved a residual receipts withdrawal to pay outstanding audit fees. The financial data was submitted into the FASSUB system.
Finding 2022-001
Finding #2022-001: Section 202 Capital Advance, CFDA 14.157 Condition: The Company made 6 monthly deposits into the replacement reserve account. Criteria: The HUD regulatory agreement requires the Company to 12 monthly deposits into the replacement reserve account. Effect: Replacement reserve account is underfunded and is in violation of its Regulatory Agreement. Questioned Cost: $4,366 Cause: Operating costs Recommendation: We recommend the Company deposit the required monthly deposits into the replacement reserve account and follow the terms of the regulatory agreement. Auditor?s Comment: The Company does not have the funds to correct the underfunding. When funds become available, the Company will make a deposit into the replacement reserve account.
Finding 2022-002
Finding #2022-002: Section 202 Capital Advance, CFDA 14.157 Condition: Under terms of the HUD regulatory agreement, the Company is required to deposit excess rent into the residual receipt account. The Company did not deposit excess rent of $120. Criteria: The HUD regulatory agreement requires the Company to deposits excess rent into the residual receipt account. Effect: The Company is in violation of its Regulatory Agreement. Questioned Cost: $120 Cause: Oversight Recommendation: We recommend the Company deposit $120 into the residual receipts account. Further, we recommend the Company review the regulatory agreement to ensure compliance. Auditor?s Comment: On March 28, 2023, the Company deposited $120 into the residual receipts account. Finding 2022-002 Cleared.
Finding 2022-003
Finding #2022-003: Section 202 Capital Advance, CFDA 14.157 Condition: The audited financial statements were not entered into the FASSUB system timely. Criteria: The HUD regulatory agreement requires the audited financial statements to be prepared in accordance with GAAP and filed into the FASSUB system within 90 days of year end. Effect: The Company is in violation of the compliance requirement of its major federal program. Questioned Cost: $0 Cause: Insufficient funds to pay prior year audit fees. Recommendation: We recommend the audited financial statements be submitted into the FASSUB system within 90 days of year end. Auditor?s Comment: HUD approved a residual receipts withdrawal to pay outstanding audit fees. The financial data was submitted into the FASSUB system.