Audit 27758

FY End
2022-06-30
Total Expended
$2.31M
Findings
2
Programs
2
Year: 2022 Accepted: 2023-06-23

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
32143 2022-001 Material Weakness - P
608585 2022-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $1.98M Yes 1
10.427 Rural Rental Assistance Payments $326,684 - 0

Contacts

Name Title Type
ZQ76E69YPP55 Johanne L'italien Auditee
8603985425 Nicole Berger-Burns Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: BASIC FINANCIAL STATEMENTSThe accounting policies of Madison Interfaith Residential Community, Inc. d/b/a Concord Meadows conform to accounting principles generally accepted in the United States of America as applicable to nonprofit organizations.SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSThe accompanying schedule of expenditures of federal awards has been prepared on the accrual basis consistent with the preparation of the basic financial statements. Information included in the schedule of expenditures of federal awards 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).For cost reimbursement awards, revenues are recognized to the extent of expenditures. Expenditures have been recognized to the extent the related obligation was incurred within the applicable grant period and liquidated within 90 days after the end of the grant period.For performance-based awards, revenues are recognized to the extent of performance achieved during the grant period.Madison Interfaith Residential Community, Inc. d/b/a Concord Meadows has not elected to use the 10% de Minimis indirect cost rate. The June 30, 2022 ending balances of the U.S. Department of Agriculture loans included on the accompanying schedule of expenditures of federal awards was $1,728,858. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. RURAL RENTAL HOUSING LOANS (10.415) - Balances outstanding at the end of the audit period were 1728858.

Finding Details

2022-001 BANK RECONCILIATIONS Criteria: Bank reconciliations should be prepared in a timely manner (i.e. monthly). Condition: During our audit testing, we noted that some bank reconciliations were not prepared monthly, but rather they were prepared in batches months after the statement date. Cause: Bank statements are not being reviewed and reconciled monthly. Effect: Transactions may be omitted from the general ledger system or bank errors may go undetected if accounts are not reconciled monthly. Questioned Costs: N/A Recommendation: We recommend that management ensure that all bank accounts are reconciled monthly to ensure proper recording of transactions. Management?s Views and Corrective Action Plan: Management has implemented the protocol with staff members to reconcile the bank statements by the 10th of each month.
2022-001 BANK RECONCILIATIONS Criteria: Bank reconciliations should be prepared in a timely manner (i.e. monthly). Condition: During our audit testing, we noted that some bank reconciliations were not prepared monthly, but rather they were prepared in batches months after the statement date. Cause: Bank statements are not being reviewed and reconciled monthly. Effect: Transactions may be omitted from the general ledger system or bank errors may go undetected if accounts are not reconciled monthly. Questioned Costs: N/A Recommendation: We recommend that management ensure that all bank accounts are reconciled monthly to ensure proper recording of transactions. Management?s Views and Corrective Action Plan: Management has implemented the protocol with staff members to reconcile the bank statements by the 10th of each month.