CHRISTIAN CARE COTTONWOOD VI, INC.Non-Profit

Significant Deficiency in Internal Control over Compliance Finding 2021-002 Eligibility U.S. Department of Housing and Urban Development CFDA #14.157 Supportive Housing for the Elderly Criteria: The Organization?s property manager is required to sign the form HUD-50059 showing that it has been reviewed and all the information on the form is accurate. Condition: During testing performed, we identified one tenant whose form HUD-50059 was not signed by the property manager. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 3 tenants out of 13 total tenants were selected for eligibility testing. Cause: The procedures used by the Organization to review and agree to the form HUD-50059 were not properly followed. Effect: The Organization failed to document review of required tenant forms. Repeat Finding from Prior Year: No. Recommendation: We recommend the Organization review the method used to ensure that each tenant?s form HUD-50059 is properly reviewed. Views of Responsible Officials: Management agrees with the finding and has corrected the error.

Material Weakness in Internal Control over Compliance and Noncompliance Finding 2020-001 Procurement, Suspension, and Debarment U.S. Department of Housing and Urban Development CFDA #14.157 Supportive Housing for the Elderly Criteria: Christian Care Cottonwood VI, Inc.?s internal controls over procurement and the written procurement, suspension, and debarment policy includes the requirement that procurement records and files for purchases in excess of the small purchase threshold ($10,000) shall include a contract. Additionally, the Uniform Guidance requires that Christian Care Cottonwood VI, Inc. ensures vendors are not suspended or debarred prior to entering into a contract. Condition: During testing performed, we identified the following issues: ? It was determined that an expenditure in excess of the small purchase threshold did not have a contract agreement per the procurement policy. ? It was determined that the expenditure lacked documentation of the suspension and debarment check. Based on testing performed, the vendor was not suspended or debarred. Questioned Costs: None. Context/Sampling: A sample size of one expenditure in excess of $10,000 out of a population of one was selected for testing. Cause: Christian Care Cottonwood VI, Inc. was not following their formal procurement, suspension, and debarment policy and thus did not retain a contract or suspension and debarment documentation. Effect: Christian Care Cottonwood VI, Inc. is not in compliance with the procurement guidelines under the Uniform Guidance. Repeat Finding from Prior Year: No. Recommendation: As an enhancement to controls over compliance, we recommend that Christian Care Cottonwood VI, Inc. consider modification or implementation of policies and procedures that would strengthen internal controls surrounding the procurement requirements and the management of these requirements. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Housing and Urban Development CFDA #14.157 Supportive Housing for the Elderly Criteria: Christian Care Cottonwood VI, Inc. is required to create a residual receipts account for any surplus cash at year-end. HUD has deemed amounts in excess of $250 per unit, $2,500 in total for the 10 units operated by Christian Care Cottonwood VI, Inc., held in the residual receipts account are subject to recapture and must be sent to HUD by the PRAC renewal date. Condition: During testing performed, it was determined that the residual receipts account was overfunded by $13,387 as of December 31, 2020, as it was not returned to HUD by the PRAC renewal date 10/1/2020. Questioned Costs: None. Context/Sampling: N/A Cause: The procedures used by Christian Care Cottonwood VI, Inc. to monitor the residual receipts account balance and send excess funds back to HUD were not properly followed. Effect: Christian Care Cottonwood VI, Inc. failed to correctly remit excess residual receipts to HUD in a timely manner. Repeat Finding from Prior Year: No. Recommendation: We recommend Christian Care Cottonwood VI, Inc. review the methods used to ensure that excess residual receipts are properly remitted to HUD in a timely manner. Views of Responsible Officials: Management agrees with the finding.

Significant Deficiency in Internal Control over Compliance Finding 2020-003 Eligibility U.S. Department of Housing and Urban Development CFDA #14.157 Supportive Housing for the Elderly Criteria: Christian Care Cottonwood VI, Inc.?s property manager is required to sign the form HUD-50059 showing that it has been reviewed and all the information on the form is accurate. Condition: During testing performed, we identified one tenant whose form HUD-50059 was not signed by the property manager. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 4 tenants out of 11 total tenants were selected for eligibility testing. Cause: The procedures used by Christian Care Cottonwood VI, Inc. to review and agree to the form HUD-50059 were not properly followed. Effect: Christian Care Cottonwood VI, Inc. failed to document review of required tenant forms. Repeat Finding from Prior Year: No. Recommendation: We recommend Christian Care Cottonwood VI, Inc. review the method used to ensure that each tenant?s form HUD-50059 is properly reviewed. Views of Responsible Officials: Management agrees with the finding and has corrected the error.

GSA_MIGRATION

GSA_MIGRATION