Columbia Cascade Housing CorporationNon-Profit

Assisted Listing Number/Federal Program/Granting Agency: 14.251 Economic Development Initiative Criteria: The Organization must have adequate controls in place over compliance with procurement requirements. Statement of Condition: As part of our review of the Economic Development program, we noted there were no procurement process performed during the selection of the architect. Questioned Costs: It is not practicable to estimate questioned costs. Cause: The Organization relied on developer, a third party, for compliance with requirements, the developer, a third party, did not have a procurement policy and was not aware of compliance requirements related to procurement. Effect or Possible Effect and Perspective: The Organization did not comply with procurement requirements in the selection of the architect. Repeat Finding: A repeat finding. Recommendation: We recommend the Organization review all compliance requirements with the Economic Development Initiative grant program themselves and not rely on developer, a third party, to ensure all compliance requirements are being followed. Views of Responsible Officials: Paula Maden, agrees, via the corrective action plan.

Assisted Listing Number/Federal Program/Granting Agency: 10.415 Criteria: The Organization must have adequate controls over replacement reserve in place to ensure accurate and timely deposits are executed to the reserve accounts. Statement of Condition: As part of our review of replacement reserve accounts required by RD, we noted there were 3 properties, Carson Springs, White Caps, and Wy East, which were inadequately funding RD required replacement reserve accounts during the year. The RD properties Carson Springs, White Caps, and Wy East were underfunded by $9,100, $11,500, and $16,034, respectively during 2024. Questioned Costs: It is not practicable to estimate questioned costs. Cause: Management failed to request abatement of RD replacement reserve deposits for three properties. Two of the properties (Carson Springs and White Caps) made no deposits during the year, and one property, Wy East Vista, only had 5 deposits during the year. The failure to request abatement or decrease in the reserve deposits resulted in underfunded RD replacement reserves. Effect or Possible Effect and Perspective: The replacement reserve accounts are underfunded for 3 of the properties (Carson Springs, White Caps, and Wy East), properties are out of compliance with RD replacement reserve account required deposits. The replacement reserves may not have sufficient funds to maintain repair costs. Repeat Finding: Not a repeat finding. Recommendation: We recommend the Organization request from RD an a reduction in deposit amounts for properties struggling for cash, or an entire pause of deposits. We recommend the Organization receive approval from RD prior to reducing or stopping any RD replacement reserve deposits. Views of Responsible Officials: Paula Maden, agrees, via the corrective action plan.

Assisted Listing Number/Federal Program/Granting Agency: 14.251 Economic Development Initiative Criteria: The Organization must have adequate controls in place over compliance with procurement, suspension, and debarment requirements. Statement of Condition: As part of our review of the Economic Development program, we noted there were no suspension and debarment tests performed on any vendors, and no procurement process performed during the selection of the architect. Questioned Costs: It is not practicable to estimate questioned costs. Cause: The Organization relied on developer for compliance with requirements, the developer did not have a procurement policy and was not aware of compliance requirements related to suspension and debarment. Effect or Possible Effect and Perspective: Vendors could be suspended or debarred. The Organization did not comply with procurement requirements in the selection of the architect. Repeat Finding: Not a repeat finding. Recommendation: We recommend the Organization review all compliance requirements with the Economic Development Initiative grant program themselves and not rely on developer to ensure all compliance requirements are being followed. Views of Responsible Officials: Paula Maden, agrees, via the corrective action plan.

Finding 2021-001: Assisted Listing Number/Federal Program/Granting Agency: 10.415 Criteria: The Organization must have adequate controls over cash receipts in place to ensure accurate and timely reconciliation of accounts receivable and reporting to RD form 3560-29. Statement of Condition: As part of our review of cash receipts, we noted the RD form 3560-29 did not agree to the General Ledger specifically related to the recording of tenant payment of rent and tenant accounts receivable. Questioned Costs: It is not practicable to estimate questioned costs. Cause: Management was understaffed during the year and did not have adequate staff to reconcile the revenue and receivable accounts timely. Effect or Possible Effect and Perspective: The tenant rent revenue and accounts receivable is either under or over stated, collection on accounts may not be timely. Repeat Finding: Not a repeat finding. Recommendation: We recommend the Organization designate a staff to reconcile the accounts receivable with proper accrual basis entries where needed. In addition, we recommend the Organization reconcile gross potential rent at least monthly and implement and document the reconciliation of the accounts receivable. Views of Responsible Officials: Joel Madsen, Executive Director, agrees the accounts were not reconciled timely, via the corrective action plan.