FAC Explorer

Audit 28979

FY End
2022-06-30
Total Expended
$804,313
Findings
2
Programs
2
Organization: Susanne Corporation (MO)
Year: 2022 Accepted: 2022-12-12
Auditor: Kpm CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33146 2022-002 Significant Deficiency - Allowable Costs/Cost Principles
609588 2022-002 Significant Deficiency - Allowable Costs/Cost Principles

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $662,293 Yes 1
14.195 Section 8 Housing Assistance Payments Program $142,020 - 0

Contacts

Name Title Type
Z3E3JMX3BR43 Joey Wilke Auditee
4174663694 Barbara Houser Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances 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, and/or OMB Circular A-122, Cost Principles for Non-profit Organization, 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. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were $641,907.
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, and/or OMB Circular A-122, Cost Principles for Non-profit Organization, 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. The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Susanne Corporation, 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 Susanne Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Susanne Corporation.
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, and/or OMB Circular A-122, Cost Principles for Non-profit Organization, 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. Susanne Corporation did not provide funds to subrecipients in the current year.

Finding Details

Finding 2022-002
Significant Deficiency 2022-002 Written Uniform Guidance Policies and Procedures Federal Program: U.S. Department of Housing and Urban Development Federal Assistance Listing 14.155 ? Section 207-223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multi-Family Projects Criteria: Uniform Guidance requires written procedures for cash management and determining the allowability of costs in accordance with Subpart E ? Cost Principals. Condition: Susanne Corporation did not have written procedures for cash management (2 CFR 200.302(b)(6)) and allowable costs determination (2 CFR 200.302(b)(7)) in accordance with Uniform Guidance requirements. Questioned Costs: $0 Cause: Susanne Corporation?s written policies and procedures were not updated to include required Uniform Guidance policies. Effect: Employees of Susanne Corporation could enter into a transaction that is not in compliance with Uniform Guidance requirements. Recommendation: We recommend Susanne Corporation should draft and adopt written procedures in accordance with Uniform Guidance requirements. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and is in the process of drafting and implementing written procedures for cash management and determining the allowability of costs in accordance with Subpart E ? Cost Principals.
Finding 2022-002
Significant Deficiency 2022-002 Written Uniform Guidance Policies and Procedures Federal Program: U.S. Department of Housing and Urban Development Federal Assistance Listing 14.155 ? Section 207-223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multi-Family Projects Criteria: Uniform Guidance requires written procedures for cash management and determining the allowability of costs in accordance with Subpart E ? Cost Principals. Condition: Susanne Corporation did not have written procedures for cash management (2 CFR 200.302(b)(6)) and allowable costs determination (2 CFR 200.302(b)(7)) in accordance with Uniform Guidance requirements. Questioned Costs: $0 Cause: Susanne Corporation?s written policies and procedures were not updated to include required Uniform Guidance policies. Effect: Employees of Susanne Corporation could enter into a transaction that is not in compliance with Uniform Guidance requirements. Recommendation: We recommend Susanne Corporation should draft and adopt written procedures in accordance with Uniform Guidance requirements. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and is in the process of drafting and implementing written procedures for cash management and determining the allowability of costs in accordance with Subpart E ? Cost Principals.