FAC Explorer

Audit 2384

FY End
2023-06-30
Total Expended
$1.71M
Findings
4
Programs
1
Organization: Fiddler's Annex, Inc. (TN)
Year: 2023 Accepted: 2023-11-06
Auditor: Johnson Hickey & Murchison PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1259 2023-001 Significant Deficiency - A
1260 2023-002 - Yes P
577701 2023-001 Significant Deficiency - A
577702 2023-002 - Yes P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.71M Yes 2

Contacts

Name Title Type
D5FMLLW463T3 Myra Walker Auditee
9314324111 Andrew Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - 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. Fiddler's Annex, Inc. 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: Fiddler's Annex, Inc. has elected not to use the 10-percent 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 Fiddler's Annex, Inc., HUD Project No. 086-IF001, 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 Fiddler's Annex, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Fiddler's Annex, Inc.
Title: NOTE C - 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. Fiddler's Annex, Inc. 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: Fiddler's Annex, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Fiddler's Annex, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section Section 202 of the National Housing Act of 1959. The balance is included in the federal expenditures presented in the Schedule. Fiddler's Annex, Inc. received no additional funds during the year.

Finding Details

Finding 2023-001
Information on federal program Section 202 Supportive Housing for the Elderly Federal Assistance Listing Number 14.157. Questioned costs $0 Condition The Organization paid a vendor twice for services rendered. Criteria The Organization’s internal control over cash disbursements of project funds requires proper cost identification and record keeping before and after payment. Cause Bills were not properly recorded as paid in Organization’s records. Effect Disallowed costs were identified, although the amount identified did not meet the threshold for reporting as a questioned cost under the Uniform Guidance. Recommendation Management should re-evaluate controls around cost identification and authorization, and work to keep records current. Views of management Management concurs. Auditors’ summary of the auditee’s comments on the finding and recommendations Management will re-evaluate controls around cost identification and authorization in efforts to minimize potential error going forward.
Finding 2023-002
Information on federal program Section 202 Supportive Housing for the Elderly Federal Assistance Listing Number 14.157. Questioned costs $0 Criteria The Organization is required to make deposits into an escrow account to fund tax and insurance payments for the fiscal year. Condition The Organization’s escrow cash account did not have adequate deposits as of June 30, 2023. Cause The Organization had inadequate cash on hand to fund the escrow account. Effect The Organization may not be able to pay for their taxes and insurance for the upcoming year. Recommendation Management should budget for monthly tax and insurance escrow deposits and request a rent increase to prevent future shortfalls in escrow cash. Views of Management Management concurs. Auditors’ summary of the auditee’s comments on the findings and recommendations Management will request a rent increase and make deposits to the escrow account sufficient to cover future tax and insurance costs.
Finding 2023-001
Information on federal program Section 202 Supportive Housing for the Elderly Federal Assistance Listing Number 14.157. Questioned costs $0 Condition The Organization paid a vendor twice for services rendered. Criteria The Organization’s internal control over cash disbursements of project funds requires proper cost identification and record keeping before and after payment. Cause Bills were not properly recorded as paid in Organization’s records. Effect Disallowed costs were identified, although the amount identified did not meet the threshold for reporting as a questioned cost under the Uniform Guidance. Recommendation Management should re-evaluate controls around cost identification and authorization, and work to keep records current. Views of management Management concurs. Auditors’ summary of the auditee’s comments on the finding and recommendations Management will re-evaluate controls around cost identification and authorization in efforts to minimize potential error going forward.
Finding 2023-002
Information on federal program Section 202 Supportive Housing for the Elderly Federal Assistance Listing Number 14.157. Questioned costs $0 Criteria The Organization is required to make deposits into an escrow account to fund tax and insurance payments for the fiscal year. Condition The Organization’s escrow cash account did not have adequate deposits as of June 30, 2023. Cause The Organization had inadequate cash on hand to fund the escrow account. Effect The Organization may not be able to pay for their taxes and insurance for the upcoming year. Recommendation Management should budget for monthly tax and insurance escrow deposits and request a rent increase to prevent future shortfalls in escrow cash. Views of Management Management concurs. Auditors’ summary of the auditee’s comments on the findings and recommendations Management will request a rent increase and make deposits to the escrow account sufficient to cover future tax and insurance costs.