EIN: 936002230
UEI: FM4KKNEARTL4
Data as of August 19, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 3, 2026. 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 3, 2026, which was (17 days ago).
What is a management decision? →2025-001 : Assistance Listing No. 14.239 HOME Investment Partnerships Program Special Tests and Provisions - Housing Quality Standards 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 5 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-assisted tenant-based rental assistance to determine compliance with housing quality standards (24 CFR 92.209(i), 92.251(f), and 92.504(d)). Condition: Of the 10 properties tested, one was out of compliance as an inspection should have been completed by October 2024. Cause: The Organization is responsible for contacting the City of Salem (the City) and Oregon Housing and Community Services (OHCS) to schedule the inspections timely but there were delays caused by the COVID-19 pandemic. Effect: Units could be out of compliance with housing quality standards. Questioned Costs: None Recommendations: We recommend the Organization set up a schedule and tracking system in order to contact the City and OHCS in advance of the due date of inspections in order to allow the City and OHCS sufficient time to complete the inspections timely. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan included in report.
The Organization has created a tracking system that identifies when the last inspection was completed and when the next inspection should be due based on the number of units at each complex. NOTE: Inspections are not due until June through October of 2027 for complexes under the jurisdiction of the City of Salem.
2024-001
66.958 - Water Infrastructure Finance and Innovation - Significant deficiency in internal controls and noncompliance over reporting. Criteria The WIFIA Loan Agreement dated June 20, 2023, requires the City to submit an updated financial model/plan and annual financial statements no later than 180 days after the end of the City’s fiscal year. The Agreement also requires the City to submit quarterly construction monitoring reports within 30 days of quarter end. Condition The City submitted the updated financial model/plan for the fiscal year ended June 30, 2024, on January 31, 2025, and submitted the annual financial statements for the fiscal year ended June 30,2024, on January 29, 2025. In addition, the construction monitoring report for the quarter ended June 30, 2025, was submitted July 31, 2025. Cause The City did not have appropriate internal controls or processes in place to ensure submission by the required dates. Effect The lender relies on this information to monitor the project and without timely submission, they are unable to monitor project progress and compliance. Questioned Costs None. Recommendations We recommend the City implement processes and procedures to ensure timely submission of all reports going forward. Views of Responsible Officials Management acknowledges the missing internal control over the late submission of the updated financial model/plan for the fiscal year end June 30, 2024. Management has maintained an effective internal control tool for many years in the form of a master spreadsheet called the Annual Task Calendar that the entire Finance staff reviews at every biweekly Finance meeting, but the WIFIA deadlines were errantly not incorporated into that tool until January 2026. While management agrees with the finding, it should be noted that management was not operating without controls. Rather, the deadline being adhered to was just the wrong date. Management submitted updated financial model/plan by January 31, 2025, which was within the month following the close of the calendar year, similarly to the quarterly construction reports that are due 30 days after the end of the preceding quarter. In addition, the data on the annual model reflected current information near the time of release of the report, not June 30, 2024. So, in substance, management provided an even more current, relevant document. Management acknowledges the additional finding language that the June 30, 2025 quarterly construction monitoring report was submitted on day 31 rather than day 30 following the close of the quarter. Finally, management acknowledges that the annual updated financial model/plan for June 30, 2025, will be submitted in January 2026 as the internal control, as mentioned above, was not corrected until January 2026, which will result in the same finding on the Single Audit for June 30, 2026. However, management believes that we have taken the appropriate measures required to avoid ongoing replication.
Management acknowledges the missing internal control over the late submission of the updated financial model/plan for the fiscal year end June 30, 2024. Management has maintained an effective internal control tool for many years in the form of a master spreadsheet called the Annual Task Calendar that the entire Finance staff reviews at every biweekly Finance meeting, but the WIFIA deadlines were errantly not incorporated into that tool until January 2026. While management agrees with the finding, it should be noted that management was not operating without controls. Rather, the deadline being adhered to was just the wrong date. Management submitted updated financial model/plan by January 31, 2025, which was within the month following the close of the calendar year, similarly to the quarterly construction reports that are due 30 days after the end of the preceding quarter. In addition, the data on the annual model reflected current information near the time of release of the report, not June 30, 2024. So, in substance, management provided an even more current, relevant document. Management acknowledges the additional finding language that the June 30, 2025 quarterly construction monitoring report was submitted on day 31 rather than day 30 following the close of the quarter. Finally, management acknowledges that the annual updated financial model/plan for June 30, 2025, will be submitted in January 2026 as the internal control, as mentioned above, was not corrected until January 2026, which will result in the same finding on the Single Audit for June 30, 2026. However, management believes that we have taken the appropriate measures required to avoid ongoing replication. Responsible Official: Matt Zook, Finance Director
2025-002 : Assistance Listing No. 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Allowable Activities and Allowable Costs Criteria: In accordance with the Uniform Guidance (2 CFR Part 200) and the U.S. Department of the Treasury Compliance and Reporting Guidance for ALN 21.027, recipients of SLFRF funds are required to ensure that all transfers or subawards of federal funds comply with applicable allowability requirements. Condition: The Organization transferred a portion of the money received to PSLLC, which is outside of compliance requirements. Cause: The condition occurred due to inadequate internal controls over the review and approval of fund transfers, including insufficient understanding of SLFRF compliance requirements and a lack of formal procedures to assess compliance prior to transferring funds. Effect: As a result, SLFRF funds were used in a manner not in compliance with federal requirements, which may result in questioned costs, potential repayment of funds to the granting agency, and increased risk of noncompliance with federal grant regulations. Questioned Costs: $16,000 Recommendations: We recommend the Organization set up a system to review transfers of federal funding prior to the transfer taking place to ensure it is within the compliance requirements of the grant. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan included in report.
The Organization has set up a system to review transfers of federal funding by the Senior Asset Manager and Chief Financial Officer prior to the transfer taking place to ensure it is within the compliance requirements of the grant
2024-001
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 15, 2023. 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 June 15, 2024, which was (796 days ago).
What is a management decision? →21.027 - Coronavirus State and Local Fiscal Recovery Funds Criteria: 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition: City of Oregon City has not developed written procedures for determining the allowability of costs. Cause: Administration did not have written procedures for determining the allowability of costs. Effect: Unallowable costs could be charged to the program. Questioned Costs: None Perspective: Written procedures for determining the allowability of costs is integral to the proper design of internal controls. However, the results of audit procedures did not detect any costs which are not allowable charged to the program. Recommendations: Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of Responsible Officials: Management understands the requirement for written procedures for determining the allowability of costs. A formal policy and procedure was approved and adopted August 22, 2023. The opportunity to identify this finding arose due to new management staff and a new audit firm engaged with the June 30, 2022, audit, and we appreciate the opportunity to improve compliance.
Background: One repeat finding from the 2022 fiscal year audit was identified on the Schedule of Expenditures and Federal Awards during 2023 fiscal year end audit conducted by Aldrich CPAs + Advisors LLP (Aldrich). For fiscal year 2022, Aldrich performed an audit on the major program Disaster Grants – Public Assistance (Presidentially Declared Disasters) for the monies received from the Department of Homeland Security passed through the Oregon Office of Emergency Management awarded to the City for the February 2021 Ice Storm. Management recognizes the importance of adequate procedures and internal control oversight and has rectified this finding. Management’s response and corrective plan of action for the finding follows. Finding 2023-001: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition: City of Oregon City has not developed written procedures for determining the allowability of costs. Cause: Administration did not have written procedures for determining the allowability of costs. Effect: Unallowable costs could be charged to the program. Questioned Costs: None Perspective: Written procedures for determining the allowability of costs is integral to the proper design of internal controls. However, the results of audit procedures did not detect any costs which are not allowable charged to the program. Recommendations: Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Responsible Official: Matt Zook, Finance Director Views of Responsible Officials: Management understands the requirement for written procedures for determining the allowability of costs. A formal policy and procedure was approved and adopted August 22, 2023. The opportunity to identify this finding arose due to new management staff and a new audit firm engage with the June 30, 2022 audit, and we appreciate the opportunity to improve compliance.
2022-001
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 11, 2023. 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 July 11, 2023, which was (1136 days ago).
What is a management decision? →City of Oregon City has not developed written procedures for determining the allowability of costs.
Responsible Official: Matt Zook, Finance Director Views of Responsible Officials: Management understands the requirement for written procedures for determining the allowability of costs and agrees to comply with this within 60 days of the filing date of the financial statements no later than February 17, 2023. The opportunity to identify this finding arose due to new management staff and a new audit firm engage with the June 30, 2022 audit, and we appreciate the opportunity to improve compliance.
The City did not properly design or implement internal controls over allowable activities, allowable costs and period of performance as it pertained to force equipment charges. In addition, the City did not properly design or implement internal controls over reporting.
Responsible Official: Matt Zook, Finance Director Views of responsible officials: Management understands the requirement for secondary review and approval both at the source level (transactions generated by departments) and the and approval and submission of grant reports) and will actively implement and execute these steps into the internal control policy. Management will meet with the public works department to evaluate the software used to track force account equipment and ensure that Supervisor review and sign off will be conducted either through the software program or physically on paper. Management will also meet with the parks department to review their process for tracking force equipment charges. They use a paper tracking system, so we will ensure that they include a supervisor review and sign off process on staff tracking sheets. Management will also create a review process within the finance department specifically for the calculation and submission of grant reporting. Management agrees to comply with this within 90 days of the filing date of the financial statements no later than March 19, 2023.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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