FAC Explorer

Audit 22032

FY End
2022-06-30
Total Expended
$1.16M
Findings
2
Programs
1
Organization: Breakthrough Phase I, Inc. (TN)
Year: 2022 Accepted: 2023-03-06
Auditor: Purkey Carter Compton Swann & Carter PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
25258 2022-001 Significant Deficiency - P
601700 2022-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $64,884 Yes 0

Contacts

Name Title Type
K85TVHSA3H33 Kendrise Colebrooke Auditee
8652470065 Paul Lynch Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal award activity of Breakthrough Phase I, Inc., and is presented on the full accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 US. 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 the Project, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Project. De Minimis Rate Used: Y Rate Explanation: NOTE B - DE MINIMIS INDIRECT COST RATE When applicable, Breakthrough Phase I, Inc. has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-001
FINDING NO. 2022-001: INEFFECTIVE OPERATION OF INTERNAL CONTROLS BY MANAGEMENT Management did not conduct recertifications of the Project?s tenants during the ?scal year under audit. CRITERIA: According to the HUD Handbook 4350.3, owners must conduct a recertification of family income and composition at least annually by the tenant?s recertification anniversary date. Owners must then recompute the tenants' rents and assistance payments, if applicable, based on the information gathered. If a new recerti?cation is not submitted within 15 months of the previous year?s recertification anniversary date, HUD will terminate assistance payments. CAUSE OF CONDITION: Management had dif?culties setting up the OneSite Leasing software in order to conduct the recertifications in a timely manner. RECOMMENDATION: Auditor recommends management review HUD Handbook 4350.3 and put proper internal controls in place to ensure recerti?cations are completed as required by HUD.
Finding 2022-001
FINDING NO. 2022-001: INEFFECTIVE OPERATION OF INTERNAL CONTROLS BY MANAGEMENT Management did not conduct recertifications of the Project?s tenants during the ?scal year under audit. CRITERIA: According to the HUD Handbook 4350.3, owners must conduct a recertification of family income and composition at least annually by the tenant?s recertification anniversary date. Owners must then recompute the tenants' rents and assistance payments, if applicable, based on the information gathered. If a new recerti?cation is not submitted within 15 months of the previous year?s recertification anniversary date, HUD will terminate assistance payments. CAUSE OF CONDITION: Management had dif?culties setting up the OneSite Leasing software in order to conduct the recertifications in a timely manner. RECOMMENDATION: Auditor recommends management review HUD Handbook 4350.3 and put proper internal controls in place to ensure recerti?cations are completed as required by HUD.