EIN: 911962233
UEI: XYKGH6CV5SC6
Data as of August 25, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 8, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by August 8, 2025 (382 days ago).
What is a management decision? →Management did not make all of the required deposits to the replacement reserve at June 30, 2024. The annual deposits required were $8,892 but only $5,918 was deposited. S3800-030 Cause: Management made bookkeeping entries to make it appear that the transfers had all been made monthly as required, but the actual cash did not get deposited and were listed as in-transit. In addition, some of the deposits were not made during the transition in management. S3800-033 Effect or Potential Effect: Management did not always follow the regulatory agreement with respect to making monthly deposits to the replacement reserve account. S3800-035 Auditor Non-Compliance Code - (N) Replacement Reserve Deposits S3800-040 Questioned Costs - $2,974 S3800-045 Reporting Views of Responsible Officials: Management will design controls to ensure all monthly deposits are made timely. Property(s) and associated questioned costs this finding applies to: S3800-037 FHA/Contract Number - 127-HD025 S3800-038 Questioned Costs - $2,974 S3800-050 Context: The HUD regulatory agreement requires twelve monthly deposits of $741 monthly to be made to a segregated replacement reserve account controlled by the Organization. Management recorded all twelve transfers, but some of the transfers were listed as in-transit on the bank statements and had not actually been made. S3800-080 Recommendation: Management should review policies and procedures to ensure all required deposits to the reserve account are made timely. Management might consider setting up automatic transfers to make the required monthly deposits. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management concurs with the auditor’s recommendation, and will design controls to ensure all required monthly deposits are made timely. S3800-130 Response Indicator – Agree S3800-140 Completion Date – December 20, 2024 S3800-150 Response: Management concurs with the auditor’s recommendation, and will design controls to ensure all required deposits are made to the replacement reserve.
Show full finding ▾Hide full finding ▴S3800-011 Title and CFDA Number of Federal Program - 14-181 Supportive Housing for Persons With Disabilities S3800-015 Type of Finding - Federal Award Finding S3800-016 Finding Resolution Status - In Process S3800-017 Information on Universe Population Size – Not Applicable S3800-018 Sample Size Information – Not Applicable S3800-019 Identification of Repeat Finding and Finding Reference Number – Not Applicable S3800-020 Criteria: HUD Regulatory Agreement provision requiring establishment and maintenance of a replacement reserve account, which required monthly deposits of $700. That deposit requirement was increased to $741 effective July 1, 2024. S3800-030 Statement of Condition: Management did not make all of the required deposits to the replacement reserve at June 30, 2024. The annual deposits required were $8,892 but only $5,918 was deposited. S3800-030 Cause: Management made bookkeeping entries to make it appear that the transfers had all been made monthly as required, but the actual cash did not get deposited and were listed as in-transit. In addition, some of the deposits were not made during the transition in management. S3800-033 Effect or Potential Effect: Management did not always follow the regulatory agreement with respect to making monthly deposits to the replacement reserve account. S3800-035 Auditor Non-Compliance Code - (N) Replacement Reserve Deposits S3800-040 Questioned Costs - $2,974 S3800-045 Reporting Views of Responsible Officials: Management will design controls to ensure all monthly deposits are made timely. Property(s) and associated questioned costs this finding applies to: S3800-037 FHA/Contract Number - 127-HD025 S3800-038 Questioned Costs - $2,974 S3800-050 Context: The HUD regulatory agreement requires twelve monthly deposits of $741 monthly to be made to a segregated replacement reserve account controlled by the Organization. Management recorded all twelve transfers, but some of the transfers were listed as in-transit on the bank statements and had not actually been made. S3800-080 Recommendation: Management should review policies and procedures to ensure all required deposits to the reserve account are made timely. Management might consider setting up automatic transfers to make the required monthly deposits. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management concurs with the auditor’s recommendation, and will design controls to ensure all required monthly deposits are made timely. S3800-130 Response Indicator – Agree S3800-140 Completion Date – December 20, 2024 S3800-150 Response: Management concurs with the auditor’s recommendation, and will design controls to ensure all required deposits are made to the replacement reserve.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT S3800-030 Statement of Condition: Management did make all of the required deposits to the replacement reserve at June 30, 2024. The annual deposits required were $8,892 but only $5,918 was deposited. S3800-045 Reporting Views of Responsible Officials: Management will design controls to ensure all monthly deposits are made timely. S3800-080: Auditor Recommendation: Management should ensure that the required reserve deposits are made by the required due date. S3800-150: Actions Taken or to be Taken: Management concurs with the auditor’s recommendation, and will design controls to ensure all required deposits are made to the replacement reserve.
FAC accepted this audit on December 4, 2023 — management decision was due June 4, 2024.
Management had developed activity level controls over compliance that included compliance review of all tenant certifications of income used in determining the amount of rent amounts due from eligible PRAC 811 participants (tenants) by the Coast compliance department. However, during our testing, management had no documentation evidencing such reviews had occurred; further, during our interview process of site staff (community managers), staff asserted that no such reviews had occurred, and that no feedback on tenant certifications was provided by the compliance department. Cause: Management had properly designed activity level controls over compliance, but those controls were not placed in operation. Proper monitoring of the compliance department was not occurring to detect the lack of proper oversight by the compliance department. Effect or Potential Effect: It is reasonably possible that ineligible tenants could improperly be granted tenancy to the property and given rental assistance for which they are not eligible. Such improper payments could be material. Auditor Non-Compliance Code: S – Internal Control Deficiencies Questioned Costs: $0 Reporting Views of Responsible Officials: After discussion with the auditor, senior management understands the importance of having a properly functioning monitoring system in place to ensure that controls that are properly designed are in fact placed in operation and functioning as intended. The compliance manager responsible for implementing the controls over compliance has been terminated, and senior management will institute monitoring procedures to ensure that controls over compliance are both properly designed and functioning as intended. Context: For the eleven files tested, no evidence existed in the files to corroborate that tenant certifications were being reviewed and approved by the compliance department. Recommendation: Management should have a process to review and approve all tenant certifications being prepared by site staff (community managers). The approval process should include an approval stamp or some other evidence that each file has been reviewed by the compliance department and is approved for processing. Further, senior management should have an ongoing monitoring process to ensure that the compliance department is carrying out the review process. Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: Management agrees with the recommendation of the auditor, and will ensure that evidence of certification review and approval is documented with a approval stamp or some other documentary evidence. Response Indicator: Agree (A) Completion Date: November 27, 2023 Response: Management agrees with the recommendation of the auditor, and will ensure that evidence of certification review and approval is documented with a approval stamp or some other documentary evidence.
Show full finding ▾Hide full finding ▴Finding Reference Number: 2023-003 Title and Assistance Listing Number of Federal Program: 14.181 Supportive Housing for Persons with Disabilities Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: 17 rental units Sample Size Information: 6 rental units Identification of Repeat Finding and Finding Reference Number: Not Applicable. Criteria: TheCommittee of Sponsoring Organizations of the Treadway Commission (COSO) framework is a widely recognized framework for designing, implementing, and evaluating internal control systems. The COSO framework defines internal control as a process that is designed to provide reasonable security with respect to achievement of objectives of compliance with applicable laws and regulations. The COSO framework offers useful guiding principles that can be applied in establishing and operating an effective regulatory compliance program with the goal of closing compliance gaps, and ensuring the prevention of material noncompliance. The monitoring component of the COSO framework involves periodic or ongoing evaluations to verify that each of the five components internal control, including the controls that affect the principles within each component, are present and functioning. Monitoring helps ensure that internal controls continue to operate effectively. Statement of Condition: Management had developed activity level controls over compliance that included compliance review of all tenant certifications of income used in determining the amount of rent amounts due from eligible PRAC 811 participants (tenants) by the Coast compliance department. However, during our testing, management had no documentation evidencing such reviews had occurred; further, during our interview process of site staff (community managers), staff asserted that no such reviews had occurred, and that no feedback on tenant certifications was provided by the compliance department. Cause: Management had properly designed activity level controls over compliance, but those controls were not placed in operation. Proper monitoring of the compliance department was not occurring to detect the lack of proper oversight by the compliance department. Effect or Potential Effect: It is reasonably possible that ineligible tenants could improperly be granted tenancy to the property and given rental assistance for which they are not eligible. Such improper payments could be material. Auditor Non-Compliance Code: S – Internal Control Deficiencies Questioned Costs: $0 Reporting Views of Responsible Officials: After discussion with the auditor, senior management understands the importance of having a properly functioning monitoring system in place to ensure that controls that are properly designed are in fact placed in operation and functioning as intended. The compliance manager responsible for implementing the controls over compliance has been terminated, and senior management will institute monitoring procedures to ensure that controls over compliance are both properly designed and functioning as intended. Context: For the eleven files tested, no evidence existed in the files to corroborate that tenant certifications were being reviewed and approved by the compliance department. Recommendation: Management should have a process to review and approve all tenant certifications being prepared by site staff (community managers). The approval process should include an approval stamp or some other evidence that each file has been reviewed by the compliance department and is approved for processing. Further, senior management should have an ongoing monitoring process to ensure that the compliance department is carrying out the review process. Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: Management agrees with the recommendation of the auditor, and will ensure that evidence of certification review and approval is documented with a approval stamp or some other documentary evidence. Response Indicator: Agree (A) Completion Date: November 27, 2023 Response: Management agrees with the recommendation of the auditor, and will ensure that evidence of certification review and approval is documented with a approval stamp or some other documentary evidence.
After discussion with the auditor, senior management understands the importance of having a properly functioning monitoring system in place to ensure that controls that are properly designed are in fact placed in operation and functioning as intended. The compliance manager responsible for implementing the controls over compliance has been terminated, and senior management will institute monitoring procedures to ensure that controls over compliance are both properly designed and functioning as intended.
Audit procedures performed in connection with the compliance requirements associated with the HOME Investment Partnerships program revealed that bi- annual on-site inspections had not been performed. Cause: Due to improper oversight over compliance and turnover of site level staff the inspections were not completed as required. Effect or Potential Effect: Management is not in compliance with respect to the inspection requirements of the HOME Investment Partnerships program. Auditor Non-Compliance Code: Z - Other Questioned Costs: $0 FHA/Contract Number: 127-HD025 S3800-040: Questioned Costs: $0 Reporting Views of Responsible Officials: After discussion with the auditor, senior management understands the importance of having a properly functioning monitoring system in place to ensure that housing quality unit inspections are performed on an annual basis. Context: We tested 6 units for compliance with the inspection requirements and 6 out of 6 files lacked documentation of inspection reports. When we broadened out our request for inspections, it was revealed that unit inspections had not occurred as required under the program requirements; however, the Corporation received a passing grade from HUD REAC as a result of its last physical inspection. Effect: The Corporation was not in compliance with HUD requirements with respects to the housing quality and inspection requirements. Recommendation: Management should design policies and procedures to ensure that compliance requirements over housing quality and bi-annual unit inspections are met. Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: Management agrees with the finding and the auditor’s recommendation, and will take the necessary steps to mitigate further non- compliance. Response Indicator: Agree (A) Completion Date: November 27, 2023 Response: Management agrees with the recommendation of the auditor and plans to take corrective actions to ensure that unit inspections of every unit is performed on at least a bi-annual basis in accordance with HUD regulations.
Show full finding ▾Hide full finding ▴Finding Reference Number: 2023-004 Title and Assistance Listing Number of Federal Program: 14.239 HOME Investment Partnerships Finding Resolution Status: IN PROCESS Information on Universe Population Size: 17 rental units Sample Size Information: 6 rental units Identification of Repeat Finding and Finding Reference Number: N/A NONE. Criteria: During the period of affordability (i.e., the period for which the nonfederal entity must maintain subsidized housing) for HOME assisted rental housing, the participating jurisdiction must perform on-site inspections to determine compliance with property standards and verify the information submitted by the owners no less than (a) every three years for projects containing one to four units, (b) every two years for projects containing five to 25 units, and (c) every year for projects containing 26 or more units. The participating jurisdiction must perform on-site inspections of rental housing occupied by tenants receiving HOME/HOME-ARP-assisted tenant-based rental assistance to determine compliance with housing quality standards (24 CFR sections 92.209(i), 92.251(f), and 92.504(d)). Statement of Condition: Audit procedures performed in connection with the compliance requirements associated with the HOME Investment Partnerships program revealed that bi- annual on-site inspections had not been performed. Cause: Due to improper oversight over compliance and turnover of site level staff the inspections were not completed as required. Effect or Potential Effect: Management is not in compliance with respect to the inspection requirements of the HOME Investment Partnerships program. Auditor Non-Compliance Code: Z - Other Questioned Costs: $0 FHA/Contract Number: 127-HD025 S3800-040: Questioned Costs: $0 Reporting Views of Responsible Officials: After discussion with the auditor, senior management understands the importance of having a properly functioning monitoring system in place to ensure that housing quality unit inspections are performed on an annual basis. Context: We tested 6 units for compliance with the inspection requirements and 6 out of 6 files lacked documentation of inspection reports. When we broadened out our request for inspections, it was revealed that unit inspections had not occurred as required under the program requirements; however, the Corporation received a passing grade from HUD REAC as a result of its last physical inspection. Effect: The Corporation was not in compliance with HUD requirements with respects to the housing quality and inspection requirements. Recommendation: Management should design policies and procedures to ensure that compliance requirements over housing quality and bi-annual unit inspections are met. Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: Management agrees with the finding and the auditor’s recommendation, and will take the necessary steps to mitigate further non- compliance. Response Indicator: Agree (A) Completion Date: November 27, 2023 Response: Management agrees with the recommendation of the auditor and plans to take corrective actions to ensure that unit inspections of every unit is performed on at least a bi-annual basis in accordance with HUD regulations.
fter discussion with the auditor, senior management understands the importance of having a properly functioning monitoring system in place to ensure that housing quality unit inspections are performed on an annual basis.
The management company made the required deposit to residual receipts however the deposit was made after the required due date. Cause: Discussion with the auditor about surplus cash occurred on September 23, 2022, but due to management oversight, the deposit was not made until October 11, 2022. Auditor Non-Compliance Code: B - Failure to make required residual receipts deposit Questioned Costs: $0 Reporting Views of Responsible Officials: After discussion with the auditor, management inadvertently neglected to make the deposit timely. FHA/Contract Number: 127-HD025 Questioned Costs: $0 Context: The deposit to the residual receipts account was made on October 11, 2022, after the required due date. Effect: The Corporation was not in compliance with HUD requirements with respects to the timing of the residual receipts deposit. Recommendation: Management should ensure that the required residual receipts deposit is made by the required due date. Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: Management agrees with the finding and the auditor’s recommendation, and will take the necessary steps to mitigate further non-compliance. Response Indicator: Agree (A) Completion Date: November 27, 2023 Response: Management agrees with the recommendation of the auditor, and will ensure that future residual receipts deposits are made timely.
Show full finding ▾Hide full finding ▴Finding Reference Number: 2023-005 Title and Assistance Listing Number of Federal Program: CFDA 14.181 Supportive Housing for Persons with Disabilities Type of Finding: Federal Award Finding: Federal Award Finding Finding Resolution Status: In Progress Information on Universe Population Size: Not Applicable Sample Size Information: Not Applicable Identification of Repeat Finding and Finding Reference Number: Not Applicable. Criteria: HUD regulatory agreement requires residual receipts to be deposited in a segregated account within 90 days following year end. Statement of Condition: The management company made the required deposit to residual receipts however the deposit was made after the required due date. Cause: Discussion with the auditor about surplus cash occurred on September 23, 2022, but due to management oversight, the deposit was not made until October 11, 2022. Auditor Non-Compliance Code: B - Failure to make required residual receipts deposit Questioned Costs: $0 Reporting Views of Responsible Officials: After discussion with the auditor, management inadvertently neglected to make the deposit timely. FHA/Contract Number: 127-HD025 Questioned Costs: $0 Context: The deposit to the residual receipts account was made on October 11, 2022, after the required due date. Effect: The Corporation was not in compliance with HUD requirements with respects to the timing of the residual receipts deposit. Recommendation: Management should ensure that the required residual receipts deposit is made by the required due date. Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: Management agrees with the finding and the auditor’s recommendation, and will take the necessary steps to mitigate further non-compliance. Response Indicator: Agree (A) Completion Date: November 27, 2023 Response: Management agrees with the recommendation of the auditor, and will ensure that future residual receipts deposits are made timely.
Management agrees with the recommendation of the auditor, and will ensure that future residual receipts deposits are made timely.
FAC accepted this audit on December 19, 2022 — management decision was due June 19, 2023.
Management did make all of the required deposits to the replacement reserve at June 30, 2022. The prior deposit shortage of $1,400 was deposited; however, the current year deposits were not always made monthly as required. S3800-030 Cause: Management made bookkeeping entries to make it appear that the transfers had all been made monthly as required, but the actual cash did not get deposited and were listed as in-transit. S3800-033 Effect or Potential Effect: Management did not always follow the regulatory agreement with respect to making monthly deposits to the replacement reserve account. S3800-035 Auditor Non-Compliance Code - (N) Replacement Reserve Deposits S3800-040 Questioned Costs - $0 S3800-045 Reporting Views of Responsible Officials: Management will design controls to ensure all monthly deposits are made timely. Property(s) and associated questioned costs this finding applies to: S3800-037 FHA/Contract Number - 127-HD025 S3800-038 Questioned Costs - $0 S3800-050 Context: The HUD regulatory agreement requires twelve monthly deposits of $700 monthly to be made to a segregated replacement reserve account controlled by the Organization. Management recorded all twelve transfers, but two transfers were listed as in-transit on the bank statements and had not actually been made. S3800-080 Recommendation: Management should review policies and procedures to ensure all required deposits to the reserve account are made timely. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management concurs with the auditor?s recommendation and will design controls to ensure all required monthly deposits are made timely. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? November 18, 2022 S3800-150 Response: Management concurs with the auditor?s recommendation and will design controls to ensure all required deposits are made to the replacement reserve.
Show full finding ▾Hide full finding ▴FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT S3800-010 Finding Reference Number 2022-001 S3800-011 Title and CFDA Number of Federal Program - 14-181 Supportive Housing for Persons With Disabilities S3800-015 Type of Finding - Federal Award Finding S3800-016 Finding Resolution Status - In Process S3800-017 Information on Universe Population Size ? Not Applicable S3800-018 Sample Size Information ? Not Applicable S3800-019 Identification of Repeat Finding and Finding Reference Number ? 2021-003 S3800-020 Criteria: HUD Regulatory Agreement provision requiring establishment and maintenance of a replacement reserve account, which requires monthly deposits of $700. S3800-030 Statement of Condition: Management did make all of the required deposits to the replacement reserve at June 30, 2022. The prior deposit shortage of $1,400 was deposited; however, the current year deposits were not always made monthly as required. S3800-030 Cause: Management made bookkeeping entries to make it appear that the transfers had all been made monthly as required, but the actual cash did not get deposited and were listed as in-transit. S3800-033 Effect or Potential Effect: Management did not always follow the regulatory agreement with respect to making monthly deposits to the replacement reserve account. S3800-035 Auditor Non-Compliance Code - (N) Replacement Reserve Deposits S3800-040 Questioned Costs - $0 S3800-045 Reporting Views of Responsible Officials: Management will design controls to ensure all monthly deposits are made timely. Property(s) and associated questioned costs this finding applies to: S3800-037 FHA/Contract Number - 127-HD025 S3800-038 Questioned Costs - $0 S3800-050 Context: The HUD regulatory agreement requires twelve monthly deposits of $700 monthly to be made to a segregated replacement reserve account controlled by the Organization. Management recorded all twelve transfers, but two transfers were listed as in-transit on the bank statements and had not actually been made. S3800-080 Recommendation: Management should review policies and procedures to ensure all required deposits to the reserve account are made timely. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management concurs with the auditor?s recommendation and will design controls to ensure all required monthly deposits are made timely. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? November 18, 2022 S3800-150 Response: Management concurs with the auditor?s recommendation and will design controls to ensure all required deposits are made to the replacement reserve.
Department of Housing and Urban Development Auditee identification number: 127-HD025 Name of audit firm: Squires Maddux & Company, PLLC Period covered by the audit: Year Ended June 30, 2022 Prepared by: S3800-160: Contact Person First Name: Mikey S3800-180: Contact Person Last Name: Clark Title: Portfolio Manager Contact Email Address: mclark@coastmgt.com The finding from the June 30, 2022 schedule of findings and question costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS ? FINANCIAL STATEMENTS AUDIT NONE. FINDINGS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT NONE. S3800-010 Finding Reference Number: 2021-003 (CONTINUED) S3800-150 Actions Taken or to be Taken: Management concurs with the auditor?s recommendation and will design controls to ensure all required monthly deposits are made timely. ____________________________________ _________________________ Mikey Clark, Regional Manager Date
2021-003
FAC accepted this audit on January 30, 2022 — management decision was due July 30, 2022.
Management did not make all of the required deposits to the replacement reserve at June 30, 2021. S3800-030 Cause: Management made bookkeeping entries to make it appear that the transfers had been made, but the actual cash did not get deposited; two transfers were listed on bank reconciliations as in-transit. S3800-033 Effect or Potential Effect: The replacement reserve is underfunded by two month?s deposit of $700 totaling $1,400. S3800-035 Auditor Non-Compliance Code - (N) Replacement Reserve Deposits S3800-040 Questioned Costs - $1,400 S3800-045 Reporting Views of Responsible Officials: Management will design controls to ensure all monthly deposits are made timely. Property(s) and associated questioned costs this finding applies to: S3800-037 FHA/Contract Number - 127-HD025 S3800-038 Questioned Costs - $1,1400 S3800-050 Context: The HUD regulatory agreement requires twelve monthly deposits of $700 monthly to be made to a segregated replacement reserve account controlled by the Organization. Management recorded all twelve transfers, but two transfers were listed as in-transit on the bank statements and had not actually been made. S3800-080 Recommendation: Management should review policies and procedures to ensure all required deposits to the reserve account are made timely. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management concurs with the auditor?s recommendation, and will design controls to ensure all required monthly deposits are made timely. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? January 12, 2022 S3800-150 Response: Management concurs with the auditor?s recommendation, and will design controls to ensure all required deposits are made to the replacement reserve.
Show full finding ▾Hide full finding ▴S3800-010 Finding Reference Number 2021-003 S3800-011 Title and CFDA Number of Federal Program - 14-181 Supportive Housing for Persons With Disabilities S3800-015 Type of Finding - Federal Award Finding S3800-016 Finding Resolution Status - In Process S3800-017 Information on Universe Population Size ? Not Applicable S3800-018 Sample Size Information ? Not Applicable S3800-019 Identification of Repeat Finding and Finding Reference Number - Not Applicable S3800-020 Criteria: HUD Regulatory Agreement provision requiring establishment and maintenance of a replacement reserve account. S3800-030 Statement of Condition: Management did not make all of the required deposits to the replacement reserve at June 30, 2021. S3800-030 Cause: Management made bookkeeping entries to make it appear that the transfers had been made, but the actual cash did not get deposited; two transfers were listed on bank reconciliations as in-transit. S3800-033 Effect or Potential Effect: The replacement reserve is underfunded by two month?s deposit of $700 totaling $1,400. S3800-035 Auditor Non-Compliance Code - (N) Replacement Reserve Deposits S3800-040 Questioned Costs - $1,400 S3800-045 Reporting Views of Responsible Officials: Management will design controls to ensure all monthly deposits are made timely. Property(s) and associated questioned costs this finding applies to: S3800-037 FHA/Contract Number - 127-HD025 S3800-038 Questioned Costs - $1,1400 S3800-050 Context: The HUD regulatory agreement requires twelve monthly deposits of $700 monthly to be made to a segregated replacement reserve account controlled by the Organization. Management recorded all twelve transfers, but two transfers were listed as in-transit on the bank statements and had not actually been made. S3800-080 Recommendation: Management should review policies and procedures to ensure all required deposits to the reserve account are made timely. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management concurs with the auditor?s recommendation, and will design controls to ensure all required monthly deposits are made timely. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? January 12, 2022 S3800-150 Response: Management concurs with the auditor?s recommendation, and will design controls to ensure all required deposits are made to the replacement reserve.
Auditee Identification Number: 127-HD025 Marysville Quilceda Meadows respectfully submits the following corrective action plan for the year ended June 30, 2021: S3800-160: Contact Person First Name: Tamra S3800-180: Contact Person Last Name: Harbo Contact Person Email Address: tharbo@coastmgt.com Period covered by the audit: Year ended June 30, 2021 Name of audit firm: Squires Maddux & Company, PLLC 100 2nd Avenue South, Ste 270 Edmonds, Washington 98020 The findings from the June 30, 2021 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS ? FINANCIAL STAEMENT AUDIT S3800-010 Finding Reference Number: 2021-001 S3800-080 Recommendation: As part of the information/communication component and monitoring component of internal control that are elements of the framework designed under the Committee of the Sponsoring Organizations of the Treadway Commission (COSO), management should have supporting activity level controls to ensure proper document retention to preserve the audit trail. Those controls should be evaluated by management to ensure they are operating as intended. Actions Taken or to be Taken: Management has activity level controls to ensure proper documentation retention, however it was discovered that the control was not operating as intended when we discovered that the September, 2020 deposit records were missing. We will provide training to employees and reiterate company policies and procedures for proper record retention. Finding Reference Number: 2021-002 Recommendation: 1. As part of the information/communication component of internal control that is an element of the framework designed under the Committee of the Sponsoring Organizations of the Treadway Commission (COSO), management should have a process to identify necessary adjustments, ensure necessary adjustments are properly approved, and approved adjustments are communicated to the proper level of management to ensure posting in the general ledger. 2. As part of the information/communication component of internal control that is an element of the framework designed under the Committee of the Sponsoring Organizations of the Treadway Commission (COSO), management should review policies and procedures and related controls over processing of accounts payable to ensure prompt recording of all expenses and that liabilities are complete in accordance with management?s completeness assertion of liabilities. Actions Taken or to be Taken: 1. Management concurs with the finding and has implemented controls to ensure all approved adjustments are communicated to the accounting department; the Accountant will be provided the adjustments and the Vice President of Accounting will ensure that all relevant adjustments are properly posted. 2. Management concurs with the finding and will review the payment processing controls that may need modification due to the process change with using a third- party payment processing firm. In addition, management will provide training to employees to ensure invoices are properly transmitted to the payment processing firm promptly so that management has assurance of the completeness assertion of liabilities. S3800-010 Finding Reference Number: 2021-003 S3800-080 Recommendation: Management should review policies and procedures to ensure all required deposits to the reserve account are made timely. S3800-150 Actions Taken or to be Taken: Management concurs with the auditor?s recommendation, and will design controls to ensure all required monthly deposits are made timely. If the Department of Housing and Urban Development has questions regarding this plan, please call Tamra Harbo, Vice President of Accounting of Coast Property Management, at 425-654-6312. Tamra Harbo, Vice President of Accounting
FAC accepted this audit on September 24, 2019 — management decision was due March 24, 2020.
The management company made the required deposit to residual receipts however the deposit was made after the required due date. S3800-035: Auditor HUD Non-Compliance Code: Z - Other Single Audit Compliance Criteria: Special Tests and Provisions S3800-040: Questioned Costs: $0 S3800-037: FHA/Contract Number: 127-HD025 S3800-038: Questioned Costs: $0 S3800-050: Context: The deposit to the residual receipts account was made on April 3, 2019, after the required due date. S3800-060: Effect: The Corporation was not in compliance with HUD requirements with respects to the timing of the residual receipts deposit. S3800-080: Recommendation: Management should ensure that the required residual receipts deposit is made by the required due date. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations: Management agrees with the finding and the auditors? recommendation, and will take the necessary steps to mitigate further non-compliance.
Show full finding ▾Hide full finding ▴FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT S3800-010: Finding Reference Number: 2019-001 CFDA 14.181 Supportive Housing for Persons with Disabilities S3800-015: Type of Finding: Federal Award Finding S3800-020: Criteria: HUD regulatory agreement requires residual receipts to be deposited in a segregated account within 60 days following year end. S3800-030: Statement of Condition: The management company made the required deposit to residual receipts however the deposit was made after the required due date. S3800-035: Auditor HUD Non-Compliance Code: Z - Other Single Audit Compliance Criteria: Special Tests and Provisions S3800-040: Questioned Costs: $0 S3800-037: FHA/Contract Number: 127-HD025 S3800-038: Questioned Costs: $0 S3800-050: Context: The deposit to the residual receipts account was made on April 3, 2019, after the required due date. S3800-060: Effect: The Corporation was not in compliance with HUD requirements with respects to the timing of the residual receipts deposit. S3800-080: Recommendation: Management should ensure that the required residual receipts deposit is made by the required due date. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations: Management agrees with the finding and the auditors? recommendation, and will take the necessary steps to mitigate further non-compliance.
COAST REAL ESTATE SERVICES CORRECTIVE ACTION PLAN SUBMITTED ON BEHALF OF MARYSIVLLE QUILCEDA MEADOWS TO: Department of Housing and Urban Development Auditee identification number: 127-HD025 Name of audit firm: Squires Maddux & Company, PLLC Period covered by the audit: Year Ended June 30, 2019 Prepared by: S3800-160: Contact Person First Name: April S3800-180: Contact Person Last Name: Lapham Title: Portfolio Manager Contact Email Address: alapham@coastmgt.com The finding from the June 30, 2019 schedule of findings and question costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS ? FINANCIAL STATEMENTS AUDIT NONE. FINDINGS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT 2019-001 CFDA 14.181 Housing for Persons with Disabilities Auditor Recommendation: Management should ensure that the required residual receipts deposit is made by the required due date. S3800-130: Response Indicator: Agree. S3800-140: Completion Date: September 6, 2019 S3800-150: Corrective Action Taken or Planned in Response to Findings Identified by the Auditor: Management agrees with the finding and has hired a replacement for the site manager. All required billing adjustments have been made as of the date the financial statements were available to be released. In addition, senior management has designed monitoring controls to provide proper oversight to site management and identify when proper procedures are not being followed to prevent or detect and correct compliance problems. If the Department of Housing and Urban Development has questions regarding this plan, please call April Lapham, Portfolio Manager, at 425-551-0834. See statements for signature____________________________________ _________________________ April Lapham, Portfolio Manager Date
FAC accepted this audit on March 26, 2019 — management decision was due September 26, 2019.
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on October 3, 2017 — management decision was due April 3, 2018.
GSA_MIGRATION
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2015-001
FAC accepted this audit on October 4, 2016 — management decision was due April 4, 2017.
GSA_MIGRATION
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2015-001
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