FAC Explorer

Audit 17255

FY End
2022-12-31
Total Expended
$11.05M
Findings
4
Programs
3
Organization: Movin' Out, Inc. (WI)
Year: 2022 Accepted: 2023-08-21
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12566 2022-002 Significant Deficiency - N
12567 2022-002 Significant Deficiency - N
589008 2022-002 Significant Deficiency - N
589009 2022-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $161,000 - 0
14.239 Home Investment Partnerships Program $97,000 - 0
14.181 Supportive Housing for Persons with Disabilities $71,676 Yes 1

Contacts

Name Title Type
W13DBKLHL4G9 Kathryne Auerback Auditee
6082514446 Jeff Dowd Auditor
No contacts on file

Notes to SEFA

Title: U.S. Department of Housing and Urban Development loan program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Movin Out, Inc. and Subsidiaries has not elected to use the 10-percent de minimis indirect cost rateallowed under the Uniform Guidance. Movin Out, Inc. and Subsidiaries has received U.S. Department of Housing and Urban Development loans under Section 811 of the National Affordable Housing Act, the Home Investment Partnership Program, and the Community Development Block Grant. The loan balances outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Movin Out, Inc. and Subsidiaries received additional loans during the year which are included in the federal expenditures presented in the Schedule. The balance of the loans outstanding at December 31, 2022 consists of: CFDA Number 14.181 Supportive Housing for Persons with Disabilities - Deferred Loans $ 6,812,000, CFDA Number 14.218 Waukesha County - Deferred Loans Community Development Block Grant $161,000, CFDA Number 14.239 Home Investment Partnership Program 3,625,524.
Title: Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Movin Out, Inc. and Subsidiaries has not elected to use the 10-percent de minimis indirect cost rateallowed under the Uniform Guidance. The accompanying schedules of expenditures of federal and state awards ("Schedule") includes the federal and state award activity of Movin Out, Inc. and Subsidiaries, under programs of the federal and state government for the year ended December 31, 2022. 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 State Single Audit Guidelines. Because the Schedule presents only a selected portion of the operations of Movin Out, Inc. and Subsidiaries, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Movin Out, Inc. and Subsidiaries. For the year ended December 31, 2022, no awards were passed through to subrecipients.

Finding Details

Finding 2022-002
Compliance Requirement: Special Tests and Provisions Criteria Security deposits on hand at the end of the Project?s annual reporting period must at least equal the amount of the security deposit liability (24 CFR section 891.4). Condition Security deposits were underfunded by $432 in fiscal year 2022. Cause New tenant security deposit was deposited into the operating account and was not transferred until February 28, 2023. The security deposit account was not reviewed in a timely manner to account for the new tenant?s security deposit. Effect or Potential Effect Movin? Out, Inc. and Subsidiaries was not in compliance with the Special Tests and Provisions compliance requirement for the year ended December 31, 2022. Questioned Costs None. Context Most tenants and disabled and use a third-party fiscal payor agent as their fiduciary to pay bills. As such all deposits from the fiscal payor agents are received as ACH payments into Movin? Out, Inc and Subsidiaries? bank account. When a new tenant paid rent and the $432 security deposit, the transaction was consolidated into one ACH payment and deposited to the operating checking account. This resulted in the security deposit account being underfunded by $432. The error was not found until the annual review of the security deposit account was conducted in February 2023. Repeat Finding N/A. Recommendation Security deposits should be closely monitored to ensure compliance. Additionally, management should implement controls over special tests and provisions to ensure compliance. Auditor Noncompliance Code: Section 811 program administration Views of Responsible Officials Movin? Out Inc. and Subsidiaries agrees with the finding and the auditor?s recommendations have been adopted. In June 2023, management updated policies and procedures surrounding the tenant security deposits, including a required monthly review of the account to ensure the account is in compliance.
Finding 2022-002
Compliance Requirement: Special Tests and Provisions Criteria Security deposits on hand at the end of the Project?s annual reporting period must at least equal the amount of the security deposit liability (24 CFR section 891.4). Condition Security deposits were underfunded by $432 in fiscal year 2022. Cause New tenant security deposit was deposited into the operating account and was not transferred until February 28, 2023. The security deposit account was not reviewed in a timely manner to account for the new tenant?s security deposit. Effect or Potential Effect Movin? Out, Inc. and Subsidiaries was not in compliance with the Special Tests and Provisions compliance requirement for the year ended December 31, 2022. Questioned Costs None. Context Most tenants and disabled and use a third-party fiscal payor agent as their fiduciary to pay bills. As such all deposits from the fiscal payor agents are received as ACH payments into Movin? Out, Inc and Subsidiaries? bank account. When a new tenant paid rent and the $432 security deposit, the transaction was consolidated into one ACH payment and deposited to the operating checking account. This resulted in the security deposit account being underfunded by $432. The error was not found until the annual review of the security deposit account was conducted in February 2023. Repeat Finding N/A. Recommendation Security deposits should be closely monitored to ensure compliance. Additionally, management should implement controls over special tests and provisions to ensure compliance. Auditor Noncompliance Code: Section 811 program administration Views of Responsible Officials Movin? Out Inc. and Subsidiaries agrees with the finding and the auditor?s recommendations have been adopted. In June 2023, management updated policies and procedures surrounding the tenant security deposits, including a required monthly review of the account to ensure the account is in compliance.
Finding 2022-002
Compliance Requirement: Special Tests and Provisions Criteria Security deposits on hand at the end of the Project?s annual reporting period must at least equal the amount of the security deposit liability (24 CFR section 891.4). Condition Security deposits were underfunded by $432 in fiscal year 2022. Cause New tenant security deposit was deposited into the operating account and was not transferred until February 28, 2023. The security deposit account was not reviewed in a timely manner to account for the new tenant?s security deposit. Effect or Potential Effect Movin? Out, Inc. and Subsidiaries was not in compliance with the Special Tests and Provisions compliance requirement for the year ended December 31, 2022. Questioned Costs None. Context Most tenants and disabled and use a third-party fiscal payor agent as their fiduciary to pay bills. As such all deposits from the fiscal payor agents are received as ACH payments into Movin? Out, Inc and Subsidiaries? bank account. When a new tenant paid rent and the $432 security deposit, the transaction was consolidated into one ACH payment and deposited to the operating checking account. This resulted in the security deposit account being underfunded by $432. The error was not found until the annual review of the security deposit account was conducted in February 2023. Repeat Finding N/A. Recommendation Security deposits should be closely monitored to ensure compliance. Additionally, management should implement controls over special tests and provisions to ensure compliance. Auditor Noncompliance Code: Section 811 program administration Views of Responsible Officials Movin? Out Inc. and Subsidiaries agrees with the finding and the auditor?s recommendations have been adopted. In June 2023, management updated policies and procedures surrounding the tenant security deposits, including a required monthly review of the account to ensure the account is in compliance.
Finding 2022-002
Compliance Requirement: Special Tests and Provisions Criteria Security deposits on hand at the end of the Project?s annual reporting period must at least equal the amount of the security deposit liability (24 CFR section 891.4). Condition Security deposits were underfunded by $432 in fiscal year 2022. Cause New tenant security deposit was deposited into the operating account and was not transferred until February 28, 2023. The security deposit account was not reviewed in a timely manner to account for the new tenant?s security deposit. Effect or Potential Effect Movin? Out, Inc. and Subsidiaries was not in compliance with the Special Tests and Provisions compliance requirement for the year ended December 31, 2022. Questioned Costs None. Context Most tenants and disabled and use a third-party fiscal payor agent as their fiduciary to pay bills. As such all deposits from the fiscal payor agents are received as ACH payments into Movin? Out, Inc and Subsidiaries? bank account. When a new tenant paid rent and the $432 security deposit, the transaction was consolidated into one ACH payment and deposited to the operating checking account. This resulted in the security deposit account being underfunded by $432. The error was not found until the annual review of the security deposit account was conducted in February 2023. Repeat Finding N/A. Recommendation Security deposits should be closely monitored to ensure compliance. Additionally, management should implement controls over special tests and provisions to ensure compliance. Auditor Noncompliance Code: Section 811 program administration Views of Responsible Officials Movin? Out Inc. and Subsidiaries agrees with the finding and the auditor?s recommendations have been adopted. In June 2023, management updated policies and procedures surrounding the tenant security deposits, including a required monthly review of the account to ensure the account is in compliance.