FAC Explorer

Audit 2892

FY End
2023-06-30
Total Expended
$2.10M
Findings
4
Programs
1
Organization: Heritage Fields, Inc. (IL)
Year: 2023 Accepted: 2023-11-11
Auditor: McK CPAS & Advisors

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1661 2023-002 - - N
1662 2023-002 - - N
578103 2023-002 - - N
578104 2023-002 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $67,795 Yes 1

Contacts

Name Title Type
VAMWGJN1LXE4 Mary Garrison Auditee
2173626262 Cathy Mansur 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. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Heritage Fields, Inc., HUD Project No. 072-HD116, 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 Heritage Fields, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Heritage Fields, Inc.
Title: Note B - Summary of Significant Accounting Policies 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: The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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.
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. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Heritage Fields, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 811 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Heritage Fields, Inc. received no additional loans during the year. The balance of the loan outstanding at June 30, 2023 consists of:
Title: Note C continued 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: The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. See the Notes to the SEFA for chart/table
Title: Note D - 10% De Minimis Indirect Cost Rate 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: The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Security Deposits U.S. Department of Housing and Urban Development - Section 811 - Assistance Listing Number 14.181 Criteria or specific requirement: HUD requires security deposits to be paid back within 30 days after move out date. Condition: We noted one security deposit that was not refunded within the 30-day requirement. Questioned Costs: None. Context: During the process of testing security deposits, it was noted that a security deposit was not refunded within the required time period. Effect: Inadequate controls over the security deposit process may result in an improper amount being paid. Cause: The Organization’s personnel inadvertently did not update or review the security deposit spreadsheet. Repeat finding: No. Recommendation: We recommend reviewing the security deposit spreadsheet monthly and refunding security deposits as soon as possible after the move out date. View of responsible officials and planned corrective actions: Management is aware of the situation and has implemented additional controls over the refunding of security deposits.
Finding 2023-002
Security Deposits U.S. Department of Housing and Urban Development - Section 811 - Assistance Listing Number 14.181 Criteria or specific requirement: HUD requires security deposits to be paid back within 30 days after move out date. Condition: We noted one security deposit that was not refunded within the 30-day requirement. Questioned Costs: None. Context: During the process of testing security deposits, it was noted that a security deposit was not refunded within the required time period. Effect: Inadequate controls over the security deposit process may result in an improper amount being paid. Cause: The Organization’s personnel inadvertently did not update or review the security deposit spreadsheet. Repeat finding: No. Recommendation: We recommend reviewing the security deposit spreadsheet monthly and refunding security deposits as soon as possible after the move out date. View of responsible officials and planned corrective actions: Management is aware of the situation and has implemented additional controls over the refunding of security deposits.
Finding 2023-002
Security Deposits U.S. Department of Housing and Urban Development - Section 811 - Assistance Listing Number 14.181 Criteria or specific requirement: HUD requires security deposits to be paid back within 30 days after move out date. Condition: We noted one security deposit that was not refunded within the 30-day requirement. Questioned Costs: None. Context: During the process of testing security deposits, it was noted that a security deposit was not refunded within the required time period. Effect: Inadequate controls over the security deposit process may result in an improper amount being paid. Cause: The Organization’s personnel inadvertently did not update or review the security deposit spreadsheet. Repeat finding: No. Recommendation: We recommend reviewing the security deposit spreadsheet monthly and refunding security deposits as soon as possible after the move out date. View of responsible officials and planned corrective actions: Management is aware of the situation and has implemented additional controls over the refunding of security deposits.
Finding 2023-002
Security Deposits U.S. Department of Housing and Urban Development - Section 811 - Assistance Listing Number 14.181 Criteria or specific requirement: HUD requires security deposits to be paid back within 30 days after move out date. Condition: We noted one security deposit that was not refunded within the 30-day requirement. Questioned Costs: None. Context: During the process of testing security deposits, it was noted that a security deposit was not refunded within the required time period. Effect: Inadequate controls over the security deposit process may result in an improper amount being paid. Cause: The Organization’s personnel inadvertently did not update or review the security deposit spreadsheet. Repeat finding: No. Recommendation: We recommend reviewing the security deposit spreadsheet monthly and refunding security deposits as soon as possible after the move out date. View of responsible officials and planned corrective actions: Management is aware of the situation and has implemented additional controls over the refunding of security deposits.