FAC Explorer

Audit 22959

FY End
2022-09-30
Total Expended
$1.52M
Findings
2
Programs
1
Organization: Flinn Place, Inc. (IN)
Year: 2022 Accepted: 2023-03-08
Auditor: Dulin Ward & Dewald INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
25640 2022-001 - Yes N
602082 2022-001 - Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.44M Yes 0

Contacts

Name Title Type
C8KWQBTSN6E7 Alma Dvorak Auditee
7656688115 Susan Berghoff Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 1440700.

Finding Details

Finding 2022-001
US Department of Housing and Urban Development Program name: Section 202, Capital advances and Mortgage Assistance AL # 14.157 Property ID: 800112281 Finding 2022-001 Special tests and provisions Criteria: Letter dated August 16, 2021 regarding Operating Budget for FY 2021-2022 stated that the monthly deposit for the reserve for replacement account will be $552 totaling $6,624 for the year. (This is a repeat finding.) Condition: Flinn Place, Inc. did not make required monthly deposits into its reserve for replacement account. Only three deposits were made during the year totaling $4,416 resulting in a shortage of funds deposited of $2,208. Effect: Balance in reserve account was underfunded monthly. Cause: The monthly deposits were not made in part due to cash flows resulting from a voucher payment for August 2022, which was normally received at the beginning of the month, not being received until September 6, 2022 and the requirement to start a residual receipts account totaling $2,685 during the year based on excess cash from fiscal year 2021. Recommendation: We recommend the Organization build an operating reserve to enable them to continue operations as well as make monthly payments into the reserve account should unusual circumstances arise. Views of responsible officials and planned corrective actions: Flinn Place, Inc. agrees with this finding. Please refer to the corrective action plan on page 35.
Finding 2022-001
US Department of Housing and Urban Development Program name: Section 202, Capital advances and Mortgage Assistance AL # 14.157 Property ID: 800112281 Finding 2022-001 Special tests and provisions Criteria: Letter dated August 16, 2021 regarding Operating Budget for FY 2021-2022 stated that the monthly deposit for the reserve for replacement account will be $552 totaling $6,624 for the year. (This is a repeat finding.) Condition: Flinn Place, Inc. did not make required monthly deposits into its reserve for replacement account. Only three deposits were made during the year totaling $4,416 resulting in a shortage of funds deposited of $2,208. Effect: Balance in reserve account was underfunded monthly. Cause: The monthly deposits were not made in part due to cash flows resulting from a voucher payment for August 2022, which was normally received at the beginning of the month, not being received until September 6, 2022 and the requirement to start a residual receipts account totaling $2,685 during the year based on excess cash from fiscal year 2021. Recommendation: We recommend the Organization build an operating reserve to enable them to continue operations as well as make monthly payments into the reserve account should unusual circumstances arise. Views of responsible officials and planned corrective actions: Flinn Place, Inc. agrees with this finding. Please refer to the corrective action plan on page 35.