Audit 63283

FY End

2022-06-30

Total Expended

$1.27M

Findings

4

Programs

1

Organization: Housing 1989 (IL)

Year: 2022 Accepted: 2022-10-17

Auditor: Gray Hunter Stenn LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
72447	2022-001	Significant Deficiency	Yes	N
72448	2022-001	Significant Deficiency	Yes	N
648889	2022-001	Significant Deficiency	Yes	N
648890	2022-001	Significant Deficiency	Yes	N

ALN	Program	Spent	Major	Findings
14.181	Supportive Housing for Persons with Disabilities	$99,420	Yes	1

Contacts

Name	Title	Type
LCJ7BZ49NDJ8	Angie Dean	Auditee
2172220423	Kamryn Kate Schrepfer	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Housing1989, HUD Project No. 072-EH-524, and is presented on the accrual basis of accounting. The information inthis schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, someamounts presented in this schedule may differ from amounts presented in, or used in the preparation of, thebasic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1170400.

Title: Non-Cash Assistance, Federal Insurance and Loans Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Housing1989, HUD Project No. 072-EH-524, and is presented on the accrual basis of accounting. The information inthis schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, someamounts presented in this schedule may differ from amounts presented in, or used in the preparation of, thebasic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. There was no non-cash assistance received and there was no federal insurance in effect during year endedJune 30, 2022. As of the year ended June 30, 2022, Housing 1989 had received capital advances totaling$1,170,400 from the Department of Housing and Urban Development (section 811) to construct its facility.The capital advance bears no interest and repayment is not required as long as the housing remains availablefor low-income persons with disabilities for not less than 40 years. The balance at June 30, 2022 is reflectedin the schedule of expenditures of federal awards.

Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Housing1989, HUD Project No. 072-EH-524, and is presented on the accrual basis of accounting. The information inthis schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, someamounts presented in this schedule may differ from amounts presented in, or used in the preparation of, thebasic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. There were no amounts passed through to subrecipients during the year ended June 30, 2022.

Finding Details

Finding 2022-001

Condition The Organization failed to make timely required monthly deposits of $2,398 into its replacement reserve account for the months of July, December and February. Criteria The Organization is required by HUD to deposit $2,398 each month into a federally insured account. Cause The Organization has not established a procedure that ensures that the deposit is made on a monthly basis. Effect The required deposit could be late or not made at all. Questioned Costs None Recommendation The Organization should develop procedures which will remind it on a monthly basis to make the deposit in a timely manner. A reminder could be made using a calendar reminder through an email service. Views of Responsible Officials Management agrees with the finding. Federal Agency Programs All Federal programs affected.

Finding 2022-001

Condition The Organization failed to make timely required monthly deposits of $2,398 into its replacement reserve account for the months of July, December and February. Criteria The Organization is required by HUD to deposit $2,398 each month into a federally insured account. Cause The Organization has not established a procedure that ensures that the deposit is made on a monthly basis. Effect The required deposit could be late or not made at all. Questioned Costs None Recommendation The Organization should develop procedures which will remind it on a monthly basis to make the deposit in a timely manner. A reminder could be made using a calendar reminder through an email service. Views of Responsible Officials Management agrees with the finding. Federal Agency Programs All Federal programs affected.

Finding 2022-001

Condition The Organization failed to make timely required monthly deposits of $2,398 into its replacement reserve account for the months of July, December and February. Criteria The Organization is required by HUD to deposit $2,398 each month into a federally insured account. Cause The Organization has not established a procedure that ensures that the deposit is made on a monthly basis. Effect The required deposit could be late or not made at all. Questioned Costs None Recommendation The Organization should develop procedures which will remind it on a monthly basis to make the deposit in a timely manner. A reminder could be made using a calendar reminder through an email service. Views of Responsible Officials Management agrees with the finding. Federal Agency Programs All Federal programs affected.

Finding 2022-001

Condition The Organization failed to make timely required monthly deposits of $2,398 into its replacement reserve account for the months of July, December and February. Criteria The Organization is required by HUD to deposit $2,398 each month into a federally insured account. Cause The Organization has not established a procedure that ensures that the deposit is made on a monthly basis. Effect The required deposit could be late or not made at all. Questioned Costs None Recommendation The Organization should develop procedures which will remind it on a monthly basis to make the deposit in a timely manner. A reminder could be made using a calendar reminder through an email service. Views of Responsible Officials Management agrees with the finding. Federal Agency Programs All Federal programs affected.