Columbia VillageNon-Profit

Type of Finding: Material Weakness in Internal Control over Financial Condition: The Corporation does not have a policy in place to provide reasonable assurance that financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP); therefore, the potential exists that a material misstatement of the annual financial statements could occur and not be prevented, or detected and corrected, by the Corporation’s internal controls. Criteria or Specific Requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Context: While performing audit procedures, it was noted that management does not have internal controls in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: The lack of controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected. Cause: The Corporation has not adopted a policy to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP; however, management has reviewed and approved the annual financial statements and related notes, as prepared by the audit firm, and has accepted responsibility for those financial statements. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2024-001. Recommendation: The Corporation should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Views of Responsible Officials and Planned Corrective Actions: Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance.

Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 202 Capital Advance Assistance Living Number: 14.157 Type of Finding: Significant Deficiency in Internal Control over Compliance Compliance Criteria or Specific Requirement: Internal controls should be in place to ensure that management monitors the bank rating quarterly for financial institutions that the Corporation holds funds at. Condition: The Corporation did not monitor the rating of the bank. Questioned Costs: N/A Context: While performing audit procedures, it was noted that the Corporation did not monitor the rating of the bank. Cause: The Corporation did not monitor the rating of the bank. Effect: Bank Rating was not monitored as required by HUD. Repeat Finding: No Recommendation: The Corporation should review the policy surrounding the procedures regarding the quarterly review of the bank ratings for financial institutions that the Corporation holds funds with. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding and management will make adjustments to the policy surrounding the procedures regarding the quarterly review of the bank ratings for financial institutions during the fiscal year ended September 30, 2026.

Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: The Corporation does not have a policy in place to provide reasonable assurance that financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP); therefore, the potential exists that a material misstatement of the annual financial statements could occur and not be prevented, or detected and corrected, by the Corporation’s internal controls. Criteria or Specific Requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Context: While performing audit procedures, it was noted that management does not have internal controls in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: The lack of controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected. Cause: The Corporation has not adopted a policy to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP; however, management has reviewed and approved the annual financial statements and related notes, as prepared by the audit firm, and has accepted responsibility for those financial statements. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2023-001. Recommendation: The Corporation should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Views of Responsible Officials and Planned Corrective Actions: Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance.

Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: Management is responsible for reviewing and retaining all support of journal entries made to the general ledger detail to ensure no fictitious or incorrect entries are made. Criteria or Specific Requirement: Internal controls should be in place to ensure the support for all journal entries are retained to support the amount and purpose of the entries made to the general ledger detail. Context: While performing audit procedures, it was noted that management was unable to provide supporting documentation for one of the journal entries selected during the testing and review of the general ledger. Effect: The lack of supporting documentation for the journal entry selected for testing increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected during the journal entry preparation process. Cause: Management was unable to provide the supporting documentation for the prepaid journal entry selected during the testing process to support the accuracy and purpose of the entry made. Repeat Finding: N/A Recommendation: The Corporation should evaluate their policies and procedures relating to the retainment of supporting documentation during the journal entry preparation and close process to ensure all supporting documentation for any journal entries made are accessible to support both the accuracy and purpose of the entries made. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding. Management will review the policies and procedures currently in place relating to the retainment of journal entry support to ensure that all supporting documentation for entries made to the general ledger are kept validating the accuracy and purpose of journal entries.

Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 202 Capital Advance Assistance Living Number: 14.157 Type of Finding: Significant Deficiency in Internal Control over Compliance Compliance Criteria or Specific Requirement: Internal controls should be in place to ensure that the HUD required deposits are made in a timely manner into the replacement reserve account. Condition: Management is responsible for reviewing and reconciling the replacement reserve account on a monthly basis ensuring all required deposits are made. Questioned Costs: $937.50 Context: While performing audit procedures, it was noted that the required monthly deposit of $937.50 was not made for all 12 months of the fiscal year. Noted one month of deposits missing. Cause: Management did not make the monthly required deposit into the replacement reserve account for all 12 months of the fiscal year. Effect: The replacement reserve account balance is understated to what it should be as of September 30, 2024 with the necessary deposits. Repeat Finding: N/A Recommendation: The Corporation should review the policy surrounding the procedures regarding the replacement reserve deposits made on a monthly basis. Also, management should make an additional deposit during the fiscal year ending September 30, 2025, in addition to the 12 required deposits, to ensure the replacement reserve account is properly funded. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding and management will make an additional deposit during the fiscal year ended September 30, 2025 to ensure the proper funding of the replacement reserve account.

Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: The Corporation does not have a policy in place to provide reasonable assurance that financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP); therefore, the potential exists that a material misstatement of the annual financial statements could occur and not be prevented, or detected and corrected, by the Corporation’s internal controls. Criteria or Specific Requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Context: While performing audit procedures, it was noted that management does not have internal controls in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: The lack of controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected. Cause: The Corporation has not adopted a policy to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP; however, management has reviewed and approved the annual financial statements and related notes, as prepared by the audit firm, and has accepted responsibility for those financial statements. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-001. Recommendation: The Corporation should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Views of Responsible Officials and Planned Corrective Actions: Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance.

2022-001 Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: The Corporation does not have a policy in place to provide reasonable assurance that financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP); therefore, the potential exists that a material misstatement of the annual financial statements could occur and not be prevented, or detected and corrected, by the Corporation?s internal controls. Criteria or Specific Requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Context: While performing audit procedures, it was noted that management does not have internal controls in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: The lack of controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected. Cause: The Corporation has not adopted a policy to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP; however, management has reviewed and approved the annual financial statements and related notes, as prepared by the audit firm, and has accepted responsibility for those financial statements. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2021-001. Recommendation: The Corporation should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Views of Responsible Officials and Planned Corrective Actions: Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance.

2021-001 Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: The Corporation does not have a policy in place to provide reasonable assurance that financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP); therefore, the potential exists that a material misstatement of the annual financial statements could occur and not be prevented, or detected and corrected, by the Corporation?s internal controls. Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Context: While performing audit procedures, it was noted that management does not have internal controls in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: The lack of controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected. Cause: The Corporation has not adopted a policy to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP; however, management has reviewed and approved the annual financial statements and related notes, as prepared by the audit firm, and has accepted responsibility for those financial statements. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2020-001. Recommendation: The Corporation should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Views of responsible officials and planned corrective actions: Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance.

2021-002 Federal agency: U.S Department of Housing and Urban Development Federal program title: Section 202 Capital Advance Assistance Living Number: 14.157 Type of Finding: Significant Deficiency in Internal Control over Compliance Compliance Criteria or specific requirement: Internal controls should be in place to issue refunds of the security deposits within 30 days when a resident moves out. Condition: Management is responsible for reviewing the security deposit listing and comparing to move outs to ensure all refunds have been issued. Questioned costs: $289.53 Context: While performing audit procedures it was noted that a refund had not been issued for a resident who had moved out during the year. Cause: Resident had moved out of the facility and the security deposit was not refunded as a part of the move out process. Effect: Resident refund of security deposits was delayed. Repeat Finding: N/A Recommendation: The Corporation should review the policy surrounding the procedures when a resident move out to ensure security deposits are returned timely. Views of responsible officials: There is no disagreement with the audit finding.

2020-001 Type of Finding: ? Material Weakness in Internal Control over Financial Reporting Condition: The Corporation does not have a policy in place to provide reasonable assurance that financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP); therefore, the potential exists that a material misstatement of the annual financial statements could occur and not be prevented, or detected and corrected, by the Corporation?s internal controls. Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Context: While performing audit procedures, it was noted that management does not have internal controls in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: The lack of controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected. Cause: The Corporation has not adopted a policy to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP; however, management has reviewed and approved the annual financial statements and related notes, as prepared by the audit firm, and has accepted responsibility for those financial statements. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2019-001. Recommendation: The Corporation should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Views of responsible officials and planned corrective actions: Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance.

2019-001 Type of Finding: ? Material Weakness in Internal Control over Financial Reporting Condition: The Corporation does not have a policy in place to provide reasonable assurance that financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP); therefore, the potential exists that a material misstatement of the annual financial statements could occur and not be prevented, or detected and corrected, by the Corporation?s internal controls. Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Context: While performing audit procedures, it was noted that management does not have internal controls in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: The lack of controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected. Cause: The Corporation has not adopted a policy to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP; however, management has reviewed an approved the annual financial statements and related notes, as prepared by the audit firm, and has accepted responsibility for those financial statements. Recommendation: The Corporation should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Views of responsible officials and planned corrective actions: Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance.

2019-002 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 202 HUD Capital Advance CFDA Number: 14.157 Award Period: Fiscal year ended September 30, 2019 Type of Finding: ? Other Matters Criteria or specific requirement: The management company is allowed to charge a set monthly fee per low-income unit. Condition: Total management fee charged for the award period exceeded the allowed amount. Questioned costs: $1,884 Context: Reviewed the HUD project owner?s/management agent?s certification pertaining to allowable management fee expense and recalculated the annual management fee allowed noting the expense to be in excess of the allowed amount. Cause: Total management fee charged for the award period exceeded the allowed amount. Effect: Management fee was charged in excess of the allowed cost by $1,884. Repeat Finding: N/A Recommendation: Management should review policies to ensure that the management costs are being recorded at the allowed amount and reduce the related accrual by the amount charged in excess. Views of responsible officials: There is no disagreement with the audit finding.

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