Audit 20705

FY End
2022-09-30
Total Expended
$24.67M
Findings
2
Programs
2
Organization: Bethany Home, Inc. (WI)
Year: 2022 Accepted: 2023-03-06
Auditor: Wipfli LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
20663 2022-002 - - N
597105 2022-002 - - N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $24.10M Yes 1
93.498 Covid-19 Provider Relief Fund $566,184 - 0

Contacts

Name Title Type
SFYVNW1W3KR5 Cindy Zarda Auditee
7152585521 Kim Heller Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (PRF), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for PRF Reporting Period 2, and Reporting Period 3. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Bethany Home Inc. and Related Organization. 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 (the Uniform Guidance). Because the schedule presents only a selected portion of the operations of Bethany Home Inc. and Related Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Bethany Home Inc. and Related Organization.
Title: Community Facilities Loans and Grants Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (PRF), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for PRF Reporting Period 2, and Reporting Period 3. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Bethany Home Inc. and Related Organization has Community Facilities direct loans from the United States Department of Agriculture. The direct loan outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Bethany Home Inc. and Related Organization received no additional payments during the year. The balance of the direct loan outstanding at September 30, 2022, was $23,489,295.
Title: Subrecipients Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (PRF), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for PRF Reporting Period 2, and Reporting Period 3. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Bethany Home Inc. and Related Organization passed no federal awards through to subrecipients.
Title: Interest Earned on provide Relief Funds Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (PRF), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for PRF Reporting Period 2, and Reporting Period 3. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. PRF reported on the Schedule included $22 of interest earned on PRF proceeds and used for allowable purposes.

Finding Details

Finding 2022.002 Reserve Account Condition: The Organization is required to have a reserve account and set aside $9,817 each month until they have accumulated sum of $1,177,968. It was noted during review of the reserve account that the required monthly deposits were not made and as September 30, 2022 and the reserve account was underfunded by $28,157. Criteria: The OMB Compliance Supplement indicates a compliance requirement that the organization maintain the reserve account in accordance with the loan resolution. Cause: Management oversight. Effect: The Organization is not in compliance with federal regulations surrounding the Community Facilities Loans and Grants. Recommendation: We recommend management and those charged with governance continue to monitor the debt reserve account.
Finding 2022.002 Reserve Account Condition: The Organization is required to have a reserve account and set aside $9,817 each month until they have accumulated sum of $1,177,968. It was noted during review of the reserve account that the required monthly deposits were not made and as September 30, 2022 and the reserve account was underfunded by $28,157. Criteria: The OMB Compliance Supplement indicates a compliance requirement that the organization maintain the reserve account in accordance with the loan resolution. Cause: Management oversight. Effect: The Organization is not in compliance with federal regulations surrounding the Community Facilities Loans and Grants. Recommendation: We recommend management and those charged with governance continue to monitor the debt reserve account.