FAC Explorer

Audit 20240

FY End
2022-12-31
Total Expended
$1.63M
Findings
2
Programs
2
Organization: Princeville Development Corporation (NC)
Year: 2022 Accepted: 2023-04-24
Auditor: Bernard Robinson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
15796 2022-001 - Yes N
592238 2022-001 - Yes N

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $1.39M Yes 1
10.427 Rural Rental Assistance Payments $238,491 - 0

Contacts

Name Title Type
M9AYS5VBP817 Neil McLamb Auditee
9107666283 Jamie Parsons Auditor
No contacts on file

Notes to SEFA

Title: LOANS OUTSTANDING Accounting Policies: SUMMARY OF SIGNIFICANT 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. Princeville Development Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Princeville Development Corporation had the following loan balances outstanding asof December 31, 2022: Program Title - Rural Rental Housing Loans; Assistance Listing Number - 10.415; Amount Outstanding - $1,357,195.42.
Title: BASIS OF PRESENTATION Accounting Policies: SUMMARY OF SIGNIFICANT 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. Princeville Development Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Princeville Development Corporation, under programs of the federal 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). Because the Schedule presents only a selected portion of the operations of Princeville Development Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Princeville Development Corporation.

Finding Details

Finding 2022-001
Finding 2022-001: U.S. Department of Agriculture, Rural Development, Rural Rental Housing Loans, Assistance Listing #10.415 Statement of Condition: During the year ended December 31, 2022, the Corporation had $71,322.74 of funds maintained in an institution that were in excess of FDIC insured limits. Criteria: USDA Handbook 2-3560, Chapter 4, states that bank account funds maintained in an institution may not exceed the limit established for Federal deposit insurance. If funds exceed the amount covered by Federal Deposit insurance, the Corporation must obtain a collateral pledge from the institution to cover all funds or move funds to an institution that will insure the funds. Effect: Noncompliance with USDA RD requirements and risk of loss of the Corporation's funds. Cause: Management and Owners do not believe the funds are at risk of loss at this time. Context: A test to verify that bank account funds maintained in an intuition were covered by Federal Deposit insurance was performed. At December 31, 2022, bank account funds in excess of the federally insured limits were $71,322.74. Recommendation: Ownership and management should obtain a collateral agreement or transfer funds to another federally insured banking institution in an amount sufficient to ensure all funds are federally insured. Questioned Costs: $0 Views of Responsible Officials and Corrective Action Plan: Management and Ownership agree with the above finding and review the financial stability of the banking institutions which hold the Corporation's funds on an ongoing basis and will continue to do so. Management and the Owners do not feel at this time that the funds are truly at risk based on current market conditions and the reviews they continually do on the financial stability of the banking institutions holding these funds. Management and the Owners will transfer the funds at any point they believe the funds are truly at risk.
Finding 2022-001
Finding 2022-001: U.S. Department of Agriculture, Rural Development, Rural Rental Housing Loans, Assistance Listing #10.415 Statement of Condition: During the year ended December 31, 2022, the Corporation had $71,322.74 of funds maintained in an institution that were in excess of FDIC insured limits. Criteria: USDA Handbook 2-3560, Chapter 4, states that bank account funds maintained in an institution may not exceed the limit established for Federal deposit insurance. If funds exceed the amount covered by Federal Deposit insurance, the Corporation must obtain a collateral pledge from the institution to cover all funds or move funds to an institution that will insure the funds. Effect: Noncompliance with USDA RD requirements and risk of loss of the Corporation's funds. Cause: Management and Owners do not believe the funds are at risk of loss at this time. Context: A test to verify that bank account funds maintained in an intuition were covered by Federal Deposit insurance was performed. At December 31, 2022, bank account funds in excess of the federally insured limits were $71,322.74. Recommendation: Ownership and management should obtain a collateral agreement or transfer funds to another federally insured banking institution in an amount sufficient to ensure all funds are federally insured. Questioned Costs: $0 Views of Responsible Officials and Corrective Action Plan: Management and Ownership agree with the above finding and review the financial stability of the banking institutions which hold the Corporation's funds on an ongoing basis and will continue to do so. Management and the Owners do not feel at this time that the funds are truly at risk based on current market conditions and the reviews they continually do on the financial stability of the banking institutions holding these funds. Management and the Owners will transfer the funds at any point they believe the funds are truly at risk.