FAC Explorer

Audit 26072

FY End
2022-12-31
Total Expended
$2.66M
Findings
2
Programs
2
Organization: Rowan-Cabarrus Young Men's Christian Association (NC)
Year: 2022 Accepted: 2023-08-06
Auditor: Turlington and Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
23600 2022-001 Significant Deficiency - N
600042 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
59.008 Disaster Assistance Loans $2.00M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $660,700 - 0

Contacts

Name Title Type
LXR7J3YHFZ83 Susan Thomas Auditee
7042169622 Dexter Garner 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. Expenditures are reported 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. DISASTER ASSISTANCE LOANS (59.008) - Balances outstanding at the end of the audit period were 2000000.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Expenditures are reported 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. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Rowan-Cabarrus Young Mens Christian Association (the YMCA) under programs of the federal government for the year ended December 31, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the YMCA, it is not intended to and does not present the financial position, changes in net assets, functional expenses, or cash flows of the YMCA.

Finding Details

Finding 2022-001
Federal Agency: United States Small Business Administration Program Name: Economic Injury Disaster Loan Federal Assistance Listing Number - 59.008 Criteria: The loan agreement includes specific provisions regarding the timely filing of certain documentation with the lender as follows: (1) Within 180 days of loan authorization, the borrower must provide proof of an active and in effect hazard insurance policy that includes fire, lightning, and extended coverage on all items used to secure the loan to at least 80% of the insurable value, and (2) Within three (3) months subsequent to the borrower?s fiscal year-end, the borrower must provide financial statements to the lender in such form as the lender may require. Condition and Context: During our audit, it was noted that internal controls were not sufficient to ensure that the documentation was filed in a timely manner as required by the terms of the loan agreement. Cause: Management is aware of these filing requirements; however, due to staffing issues and other matters related to correspondence with the lender, the documentation was erroneously not filed in the manner prescribed. Effect: Without proper and timely filing of required documentation with the lender, the entity may not be in compliance with the loan agreement. Recommendation: Develop sufficient internal controls to ensure that all lender filing requirements are identified and filings made in a timely manner. Additionally, the entity should file the required documentation with the lender as soon as is feasible. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.
Finding 2022-001
Federal Agency: United States Small Business Administration Program Name: Economic Injury Disaster Loan Federal Assistance Listing Number - 59.008 Criteria: The loan agreement includes specific provisions regarding the timely filing of certain documentation with the lender as follows: (1) Within 180 days of loan authorization, the borrower must provide proof of an active and in effect hazard insurance policy that includes fire, lightning, and extended coverage on all items used to secure the loan to at least 80% of the insurable value, and (2) Within three (3) months subsequent to the borrower?s fiscal year-end, the borrower must provide financial statements to the lender in such form as the lender may require. Condition and Context: During our audit, it was noted that internal controls were not sufficient to ensure that the documentation was filed in a timely manner as required by the terms of the loan agreement. Cause: Management is aware of these filing requirements; however, due to staffing issues and other matters related to correspondence with the lender, the documentation was erroneously not filed in the manner prescribed. Effect: Without proper and timely filing of required documentation with the lender, the entity may not be in compliance with the loan agreement. Recommendation: Develop sufficient internal controls to ensure that all lender filing requirements are identified and filings made in a timely manner. Additionally, the entity should file the required documentation with the lender as soon as is feasible. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.