FAC Explorer

Audit 1577

FY End
2023-06-30
Total Expended
$1.23M
Findings
2
Programs
2
Organization: Stafford United Methodist Housing Development Corporation (VA)
Year: 2023 Accepted: 2023-10-27
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
833 2023-001 - - N
577275 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.134 Mortgage Insurance_rental Housing $1.12M Yes 1
14.195 Section 8 Housing Assistance Payments Program $111,637 - 0

Contacts

Name Title Type
K1J6CM8TED55 Samuel Jones Auditee
8047296052 Leslie Bates Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Stafford United Methodist Housing Development Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The amount reported for the mortgage balance was the beginning of year balance. The balance at the end of the year was $1,097,880. De Minimis Rate Used: N Rate Explanation: Stafford United Methodist Housing Development Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Stafford United Methodist Housing Development Corporation, HUD Project No. 051-11388, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and/or OMB Circular A-122, Cost Principles for Non-Profit Organizations, as applicable. Because the Schedule presents only a selected portion of the operations of Stafford United Methodist Housing Development Corporation, it is not intended to and does not present the financial position, change in net deficit, or cash flows of Stafford United Methodist Housing Development Corporation.
Title: Subrecipient Payments Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Stafford United Methodist Housing Development Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The amount reported for the mortgage balance was the beginning of year balance. The balance at the end of the year was $1,097,880. De Minimis Rate Used: N Rate Explanation: Stafford United Methodist Housing Development Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. None of the expenditures reported on the Schedule were passed through to subrecipients.

Finding Details

Finding 2023-001
Criteria: In accordance with the requirements set by the US Department of Housing and Urban Development for the major program, Section 207 HUD Insured Mortgage, the Organization is obligated to deposit any surplus cash available at year-end into the residual receipts account within 60 days of the fiscal year-end (August 30th). Condition: The Organization failed to deposit surplus cash for the fiscal year ended June 30, 2022. Effect: The Organization is noncompliant with the requirements of the Section 207 HUD Insured Mortgage. Cause: The Organization used the surplus cash at the end of the June 30, 2022 fiscal year to repay their residual receipts note rather than depositing the funds into the residual receipts account and receiving HUD approval to repay the note. Repeat finding: This is not a repeat finding. Context: The deposit was required to be made into the residual receipts account within 60-days of year-end. No deposit was made. Recommendation: We recommend that management makes the required residual receipts deposit timely when surplus cash is available at year-end. Proper HUD approvals should then be obtained for any withdrawals from the residual receipts account. Management response: Management agrees with this finding. See Corrective Action Plan.
Finding 2023-001
Criteria: In accordance with the requirements set by the US Department of Housing and Urban Development for the major program, Section 207 HUD Insured Mortgage, the Organization is obligated to deposit any surplus cash available at year-end into the residual receipts account within 60 days of the fiscal year-end (August 30th). Condition: The Organization failed to deposit surplus cash for the fiscal year ended June 30, 2022. Effect: The Organization is noncompliant with the requirements of the Section 207 HUD Insured Mortgage. Cause: The Organization used the surplus cash at the end of the June 30, 2022 fiscal year to repay their residual receipts note rather than depositing the funds into the residual receipts account and receiving HUD approval to repay the note. Repeat finding: This is not a repeat finding. Context: The deposit was required to be made into the residual receipts account within 60-days of year-end. No deposit was made. Recommendation: We recommend that management makes the required residual receipts deposit timely when surplus cash is available at year-end. Proper HUD approvals should then be obtained for any withdrawals from the residual receipts account. Management response: Management agrees with this finding. See Corrective Action Plan.