FAC Explorer

Audit 2391

FY End
2023-06-30
Total Expended
$1.55M
Findings
2
Programs
1
Organization: South Carthage Manor, Inc. (TN)
Year: 2023 Accepted: 2023-11-06
Auditor: Johnson Hickey & Murchison PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1267 2023-001 Significant Deficiency - B
577709 2023-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.55M Yes 1

Contacts

Name Title Type
HUSJJ7MF8SL5 Myra Walker Auditee
9314324111 Andrew Grimes 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. South Carthage Manor, 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: South Carthage Manor, 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 includes the federal award activity of South Carthage Manor, Inc., HUD Project No. 086-EE056, 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 South Carthage Manor, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of South Carthage Manor, 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. South Carthage Manor, 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: South Carthage Manor, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. South Carthage Manor, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The balance is included in the federal expenditures presented in the Schedule. South Carthage Manor, Inc. received no additional funds during the year.

Finding Details

Finding 2023-001
Information of federal program Section 202 Supportive Housing for the Elderly Federal Assistance Listing Number 14.157. Questioned costs $0 Criteria Operating costs paid for services not provided is considered an unallowable cost. Condition Our consideration of internal control disclosed that the management company incorrectly approved a second invoice for services rendered. Cause Bills were not correctly identified as previously paid before payment was authorized. 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 review its controls over proper identification of costs associated with each Organization. Views of management Management concurs. Auditors’ summary of the auditee’s comments on the findings and recommendations Management will reevaluate controls around invoice cancellation in efforts to minimize potential error going forward.
Finding 2023-001
Information of federal program Section 202 Supportive Housing for the Elderly Federal Assistance Listing Number 14.157. Questioned costs $0 Criteria Operating costs paid for services not provided is considered an unallowable cost. Condition Our consideration of internal control disclosed that the management company incorrectly approved a second invoice for services rendered. Cause Bills were not correctly identified as previously paid before payment was authorized. 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 review its controls over proper identification of costs associated with each Organization. Views of management Management concurs. Auditors’ summary of the auditee’s comments on the findings and recommendations Management will reevaluate controls around invoice cancellation in efforts to minimize potential error going forward.