Audit 26946

FY End
2022-06-30
Total Expended
$5.13M
Findings
2
Programs
12
Year: 2022 Accepted: 2023-02-23
Auditor: Rsm US LLP

Organization Exclusion Status:

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Contacts

Name Title Type
N9DMJN2HE1F3 Michael Geraghty Auditee
7735084465 Franya Esquivel Auditor
No contacts on file

Notes to SEFA

Title: 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: CJE has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Council for Jewish Elderly and Subsidiaries (CJE) under programs of the federal government for the year ended June 30, 2022. 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 CJE, it is not intended to and does not present the financial position, changes in net deficit, or cash flows of CJE.
Title: Subrecipients 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: CJE has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. None of CJEs federal awards expenditures were provided to subrecipients during the year ended June 30, 2022.
Title: Note 4.Noncash Assistance, Insurance and Loan Guarantees 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: CJE has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. CJE did not receive any noncash awards for surplus property, interest rate subsidies, insurance awards or other noncash awards during the fiscal year ended June 30, 2022. A subsidiary of CJE has a mortgage loan guaranteed by the U.S. Department of Housing and Urban Development, which had an outstanding balance of $6,482,538 at June 30, 2022. This loan is subject to a standalone audit of Swartzberg House, LLC, HUD Project No. 071-11105 under the requirements described in the Consolidated Audit Guide for Audits of HUD Programs and is therefore excluded from the schedule.
Title: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 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: CJE has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. For the U.S. Department of Health and Human Services (HHS) awards related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program (Assistance Listing Number 93.498), HHS has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the HRSA PRF Reporting Portal. Payments from HHS for PRF are assigned to Payment Received Periods (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Periods deadline to use the funds (i.e., after the end of the Period of Availability).The Schedule includes $559,189 received from HHS between July 1, 2020 through December 31, 2020. In accordance with guidance from HHS, these amounts were submitted in the HRSA PRF Reporting Portal for Period 2 reporting. Such amounts were recognized in CJEs consolidated financial statements for the year ended June 30, 2021.

Finding Details

Section III - Federal Award Findings and Questioned Costs Finding 2022-001: Distributions in excess of surplus cash available Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Agency: Illinois Housing Development Authority Program Name: Section 8 Project - Based Cluster Assistance Listing Number: 14.195 Award Numbers: IL062156201 Category of Finding: Unauthorized distribution of project assets Criteria: The Regulatory Agreement for Multifamily Projects requires the computation of surplus cash prior to the distribution of funds to members and repayment of related-party debt. Any surplus cash in the project funds account should be deposited in a federal insured account and withdrawals may be made only for project purposes and with the approval of HUD. Condition/Context: There were distributions in excess of surplus cash available to be distributed during the year ended June 30, 2022, in the amount of $11,142. The population consists of distribution in the amount of $29,374. Cause: The Company made the distributions without considering surplus cash calculation. Effect: This may result in funds being distributed in excess of allowed amounts. Questioned Costs: None Repeat Finding: No Recommendation: We recommend management to complete and review the calculation of surplus cash to ensure it is accurate and ensure surplus cash is available prior to distributions. Management?s response: Management agrees with the aforementioned finding.
Section III - Federal Award Findings and Questioned Costs Finding 2022-001: Distributions in excess of surplus cash available Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Agency: Illinois Housing Development Authority Program Name: Section 8 Project - Based Cluster Assistance Listing Number: 14.195 Award Numbers: IL062156201 Category of Finding: Unauthorized distribution of project assets Criteria: The Regulatory Agreement for Multifamily Projects requires the computation of surplus cash prior to the distribution of funds to members and repayment of related-party debt. Any surplus cash in the project funds account should be deposited in a federal insured account and withdrawals may be made only for project purposes and with the approval of HUD. Condition/Context: There were distributions in excess of surplus cash available to be distributed during the year ended June 30, 2022, in the amount of $11,142. The population consists of distribution in the amount of $29,374. Cause: The Company made the distributions without considering surplus cash calculation. Effect: This may result in funds being distributed in excess of allowed amounts. Questioned Costs: None Repeat Finding: No Recommendation: We recommend management to complete and review the calculation of surplus cash to ensure it is accurate and ensure surplus cash is available prior to distributions. Management?s response: Management agrees with the aforementioned finding.