FAC Explorer

Audit 28963

FY End
2022-09-30
Total Expended
$1.90M
Findings
2
Programs
4
Organization: The Housing Fund, Inc. (TN)
Year: 2022 Accepted: 2023-06-29
Auditor: Kraftcpas PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
29096 2022-002 Significant Deficiency - H
605538 2022-002 Significant Deficiency - H

Programs

ALN Program Spent Major Findings
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $913,920 Yes 1
14.218 Community Development Block Grants/entitlement Grants $875,029 Yes 0
14.256 Neighborhood Stabilization Program $68,136 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $40,221 - 0

Contacts

Name Title Type
PM55TXQBLH78 David Parrish Auditee
6155152204 Ken Youngstead 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. The organization has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance. 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 Agency under programs of the federal government for the year ended September 30, 2022. The information in the Schedule of Expenditures of Federal Awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 the Agency, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Agency.

Finding Details

Finding 2022-002
U.S. Department of Treasury: ALN # 24.024 Community Development Financial Institution: Rapid Response Program (CDFI RRP) Federal Award Identification 21RRP057411 Year 2022 Criteria: In accordance with the grant agreement, at the end of the first year of the Period of Performance (September 30, 2022), the Agency must expend 90% of the CDFI RRP assistance of which 50% much be in closed financial products. If the Agency fails to achieve any performance goal, they must provide a narrative explanation for the failure. Condition: The period of performance compliance requirement related to total expenditures and close of financial products was not met. As of September 30, 2022, the Agency expended approximately 50% of the CDFI RRP Assistance of which approximately 36% was in closed financial products. Additionally, the Agency did not provide a narrative explanation of the failure. Cause: Since the federal award was over a two-year period, management believed that only 50% needed to be expended by the end of year one. Effect or potential effect: Noncompliance with the Period of Performance and Reporting requirements stated in the grant agreement is the result of finding 2022-002. Recommendation: We recommend that the Agency provide a narrative explanation of the failure to the grantor and utilize the remaining funds during the second year of the Period of Performance with the appropriate amount used towards the close of financial products. Views of responsible officials: Management acknowledges this finding and will address remediation in the accompanying corrective action plan in Appendix A.
Finding 2022-002
U.S. Department of Treasury: ALN # 24.024 Community Development Financial Institution: Rapid Response Program (CDFI RRP) Federal Award Identification 21RRP057411 Year 2022 Criteria: In accordance with the grant agreement, at the end of the first year of the Period of Performance (September 30, 2022), the Agency must expend 90% of the CDFI RRP assistance of which 50% much be in closed financial products. If the Agency fails to achieve any performance goal, they must provide a narrative explanation for the failure. Condition: The period of performance compliance requirement related to total expenditures and close of financial products was not met. As of September 30, 2022, the Agency expended approximately 50% of the CDFI RRP Assistance of which approximately 36% was in closed financial products. Additionally, the Agency did not provide a narrative explanation of the failure. Cause: Since the federal award was over a two-year period, management believed that only 50% needed to be expended by the end of year one. Effect or potential effect: Noncompliance with the Period of Performance and Reporting requirements stated in the grant agreement is the result of finding 2022-002. Recommendation: We recommend that the Agency provide a narrative explanation of the failure to the grantor and utilize the remaining funds during the second year of the Period of Performance with the appropriate amount used towards the close of financial products. Views of responsible officials: Management acknowledges this finding and will address remediation in the accompanying corrective action plan in Appendix A.