FAC Explorer

Audit 23476

FY End
2022-06-30
Total Expended
$1.54M
Findings
4
Programs
1
Organization: Independent Living Horizons Four, Inc. (GA)
Year: 2022 Accepted: 2023-03-29
Auditor: Cherry Bekaert LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
19932 2022-001 Significant Deficiency Yes N
19933 2022-001 Significant Deficiency Yes N
596374 2022-001 Significant Deficiency Yes N
596375 2022-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.45M Yes 1

Contacts

Name Title Type
EMFXN6H4CGJ5 Dennis B Skelley Auditee
7068238505 Paul Chancey Auditor
No contacts on file

Notes to SEFA

Title: Note 3: 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 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 Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Project has received a U.S. Department of Housing and Urban Development direct loan under Section 811 of the National Housing Act. The loan balance outstanding, at the beginning of the year, of $1,449,000 is included in the federal expenditures presented in the Schedule. The Project received no additional loans during the year.
Title: Note 1: Basis of presentation 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 Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule') includes the federal award activity of Independent Living Horizons Four, Inc., HUD Project No. 061-HD026-WPD, and is presented on the accrual basis of accounting. 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 the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project.

Finding Details

Finding 2022-001
Finding 2022-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Section 811 Supportive Housing for Persons with Disabilities CFDA: # 14.181 Compliance Requirement: Special Tests and Provisions ? Residual Receipts Account Type of Finding: Significant Deficiency in Internal Controls over Compliance Repeat Finding: This is a repeat finding. Criteria: In accordance with Title 24 CFR Section 891.400(e), any remaining project funds in the project funds account (including earned interest) following the expiration of the fiscal year shall be deposited in a Federally-insured residual receipts account within 60 days following the end of the fiscal year. Statement of Condition: The owner did not remit the remaining project funds in the project funds account to a federally insured residual receipts account within 60 days of the expiration of the fiscal year. Cause: The owner transferred the project?s surplus cash funds within 90 days instead of 60 days following year-end. Effect or Potential Effect: The owner is not in compliance with the HUD requirements related to the residual receipts account. Failure to transfer surplus cash from the operating account could result in the residual receipts account not being properly funded within 60 days following the end of the fiscal year as required by HUD. Questioned Costs: $6,562 Recommendation: We recommend the owner implement procedures to ensure the project?s surplus cash funds be transferred to a federally insured residual receipts account within 60 days following year-end. Reporting Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure the project?s surplus cash funds are transferred to a federally insured residual receipts account within 60 days following year-end.
Finding 2022-001
Finding 2022-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Section 811 Supportive Housing for Persons with Disabilities CFDA: # 14.181 Compliance Requirement: Special Tests and Provisions ? Residual Receipts Account Type of Finding: Significant Deficiency in Internal Controls over Compliance Repeat Finding: This is a repeat finding. Criteria: In accordance with Title 24 CFR Section 891.400(e), any remaining project funds in the project funds account (including earned interest) following the expiration of the fiscal year shall be deposited in a Federally-insured residual receipts account within 60 days following the end of the fiscal year. Statement of Condition: The owner did not remit the remaining project funds in the project funds account to a federally insured residual receipts account within 60 days of the expiration of the fiscal year. Cause: The owner transferred the project?s surplus cash funds within 90 days instead of 60 days following year-end. Effect or Potential Effect: The owner is not in compliance with the HUD requirements related to the residual receipts account. Failure to transfer surplus cash from the operating account could result in the residual receipts account not being properly funded within 60 days following the end of the fiscal year as required by HUD. Questioned Costs: $6,562 Recommendation: We recommend the owner implement procedures to ensure the project?s surplus cash funds be transferred to a federally insured residual receipts account within 60 days following year-end. Reporting Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure the project?s surplus cash funds are transferred to a federally insured residual receipts account within 60 days following year-end.
Finding 2022-001
Finding 2022-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Section 811 Supportive Housing for Persons with Disabilities CFDA: # 14.181 Compliance Requirement: Special Tests and Provisions ? Residual Receipts Account Type of Finding: Significant Deficiency in Internal Controls over Compliance Repeat Finding: This is a repeat finding. Criteria: In accordance with Title 24 CFR Section 891.400(e), any remaining project funds in the project funds account (including earned interest) following the expiration of the fiscal year shall be deposited in a Federally-insured residual receipts account within 60 days following the end of the fiscal year. Statement of Condition: The owner did not remit the remaining project funds in the project funds account to a federally insured residual receipts account within 60 days of the expiration of the fiscal year. Cause: The owner transferred the project?s surplus cash funds within 90 days instead of 60 days following year-end. Effect or Potential Effect: The owner is not in compliance with the HUD requirements related to the residual receipts account. Failure to transfer surplus cash from the operating account could result in the residual receipts account not being properly funded within 60 days following the end of the fiscal year as required by HUD. Questioned Costs: $6,562 Recommendation: We recommend the owner implement procedures to ensure the project?s surplus cash funds be transferred to a federally insured residual receipts account within 60 days following year-end. Reporting Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure the project?s surplus cash funds are transferred to a federally insured residual receipts account within 60 days following year-end.
Finding 2022-001
Finding 2022-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Section 811 Supportive Housing for Persons with Disabilities CFDA: # 14.181 Compliance Requirement: Special Tests and Provisions ? Residual Receipts Account Type of Finding: Significant Deficiency in Internal Controls over Compliance Repeat Finding: This is a repeat finding. Criteria: In accordance with Title 24 CFR Section 891.400(e), any remaining project funds in the project funds account (including earned interest) following the expiration of the fiscal year shall be deposited in a Federally-insured residual receipts account within 60 days following the end of the fiscal year. Statement of Condition: The owner did not remit the remaining project funds in the project funds account to a federally insured residual receipts account within 60 days of the expiration of the fiscal year. Cause: The owner transferred the project?s surplus cash funds within 90 days instead of 60 days following year-end. Effect or Potential Effect: The owner is not in compliance with the HUD requirements related to the residual receipts account. Failure to transfer surplus cash from the operating account could result in the residual receipts account not being properly funded within 60 days following the end of the fiscal year as required by HUD. Questioned Costs: $6,562 Recommendation: We recommend the owner implement procedures to ensure the project?s surplus cash funds be transferred to a federally insured residual receipts account within 60 days following year-end. Reporting Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure the project?s surplus cash funds are transferred to a federally insured residual receipts account within 60 days following year-end.