FAC Explorer

Audit 27375

FY End
2022-09-30
Total Expended
$1.10M
Findings
2
Programs
2
Organization: Timber Hills Housing of Tishomingo County, Inc. (MS)
Year: 2022 Accepted: 2023-06-29
Auditor: Harper Rains Knight & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20680 2022-001 Significant Deficiency Yes N
597122 2022-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.06M Yes 1
14.195 Section 8 Housing Assistance Payments Program $42,709 - 0

Contacts

Name Title Type
NJT6JPQ9BR15 Scott Russel Auditee
6018562362 Joey Fletcher Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes federal award activity of the Project 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 presented 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.NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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 auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1058700.

Finding Details

Finding 2022-001
Type of Finding: Significant Deficiency / Noncompliance Criteria: The Regulatory Agreement requires the Project to make all required deposits to the replacement reserve account. Condition: The Project did not make all the required deposits in the current year. Cause: The Project's controls over replacement reserve were not working properly. Effect or Potential Effect: Failure to make required deposits is noncompliance that could, at the discretion of HUD, result in the capital advance being called due, which would require the Project to reimburse HUD for the advance and pay interest. Perspective Information: The Project did not make all the required replacement reserve payments into the replacement reserve account. This is not a systemic issue that cannot be rectified. Repeat Finding: Yes. Recommendations: The Project should make the additional payment to meet the requirement and should implement a process to ensure implements a monthly process to ensure that all required payments have been made to the replacement reserve account in the correct to ensure compliance with their Regulatory Agreement. Views of Responsible Officials: Management concurs with the finding. Management will make an additional deposit to meet requirements and implement controls to ensure that all required deposits are made.
Finding 2022-001
Type of Finding: Significant Deficiency / Noncompliance Criteria: The Regulatory Agreement requires the Project to make all required deposits to the replacement reserve account. Condition: The Project did not make all the required deposits in the current year. Cause: The Project's controls over replacement reserve were not working properly. Effect or Potential Effect: Failure to make required deposits is noncompliance that could, at the discretion of HUD, result in the capital advance being called due, which would require the Project to reimburse HUD for the advance and pay interest. Perspective Information: The Project did not make all the required replacement reserve payments into the replacement reserve account. This is not a systemic issue that cannot be rectified. Repeat Finding: Yes. Recommendations: The Project should make the additional payment to meet the requirement and should implement a process to ensure implements a monthly process to ensure that all required payments have been made to the replacement reserve account in the correct to ensure compliance with their Regulatory Agreement. Views of Responsible Officials: Management concurs with the finding. Management will make an additional deposit to meet requirements and implement controls to ensure that all required deposits are made.