Audit 289910

FY End
2023-06-30
Total Expended
$1.04M
Findings
2
Programs
3
Year: 2023 Accepted: 2024-02-12

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
366853 2023-001 Material Weakness - P
943295 2023-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $417,319 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $312,285 - 0
14.218 Community Development Block Grants/entitlement Grants $306,374 - 0

Contacts

Name Title Type
FGNSCUVGTCW5 Karen Mason Auditee
5403440747 David Booth 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 cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. However, the City of Roanoke does not use identifying numbers. Habitat for Humanity in the Roanoke Valley, Inc. has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: No indirect costs are included in the SEFA. The schedule of expenditures of federal awards (the “Schedule”) includes the federal grant expenditures of Habitat for Humanity in the Roanoke Valley, Inc. under programs of the federal government for the year ended June 30, 2023. The information in this Schedule 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 Habitat for Humanity in the Roanoke Valley, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Habitat for Humanity in the Roanoke Valley, Inc.
Title: Summary of Significant Account Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. However, the City of Roanoke does not use identifying numbers. Habitat for Humanity in the Roanoke Valley, Inc. has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: No indirect costs are included in the SEFA. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. However, the City of Roanoke does not use identifying numbers. Habitat for Humanity in the Roanoke Valley, Inc. has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Assistance Listing Numbers Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. However, the City of Roanoke does not use identifying numbers. Habitat for Humanity in the Roanoke Valley, Inc. has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: No indirect costs are included in the SEFA. The assistance listing numbers included in this report were determined based on the program name, review of grant contract information, and the Office of Management and Budget’s Assistance Listing numbers.
Title: Unexpended Federal Awards Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. However, the City of Roanoke does not use identifying numbers. Habitat for Humanity in the Roanoke Valley, Inc. has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: No indirect costs are included in the SEFA. Habitat for Humanity in the Roanoke Valley, Inc. had unexpended federal awards of $2,829,732 at June 30, 2022 which were approved for carry over into the current fiscal year. Grant awards on houses in progress during the current fiscal year totaled $929,750. Habitat for Humanity in the Roanoke Valley, Inc. had unexpended awards of $2,798,502 at June 30, 2023.

Finding Details

Finding No. 2023-001: Internal control related matters related to inventory tracking. The Habitat ReStore maintains considerable amounts of purchased and donated materials and supplies for sale to the public, for which inventory is not tracked or counted. The lack of tracking of inventory increases the possibility of theft occurring and going unnoticed. While inventory is not recorded on the financial statements, theft could affect store revenue in amounts material to the financial statements. This is a repeat finding as management believes, given the nature of the inventory items, costs exceed the benefits derived from implementing the recommendation. Recommendation: We recommend inventory item counts be taken periodically. The tracking of inventory items could provide indications of potential theft occurring. In addition, the tracking of inventory could provide management with information on what items are sold more frequently and should be sought out for donations as well as identify slow moving or obsolete items that should be sold at deeper discounts or discarded. Management Response: The Organization concurs with this finding as stated. As in previous years, management believes given the nature of the inventory items, costs exceed the benefits derived from implementing the recommendation. This is also the recommendation from Habitat for Humanity International, Inc.
Finding No. 2023-001: Internal control related matters related to inventory tracking. The Habitat ReStore maintains considerable amounts of purchased and donated materials and supplies for sale to the public, for which inventory is not tracked or counted. The lack of tracking of inventory increases the possibility of theft occurring and going unnoticed. While inventory is not recorded on the financial statements, theft could affect store revenue in amounts material to the financial statements. This is a repeat finding as management believes, given the nature of the inventory items, costs exceed the benefits derived from implementing the recommendation. Recommendation: We recommend inventory item counts be taken periodically. The tracking of inventory items could provide indications of potential theft occurring. In addition, the tracking of inventory could provide management with information on what items are sold more frequently and should be sought out for donations as well as identify slow moving or obsolete items that should be sold at deeper discounts or discarded. Management Response: The Organization concurs with this finding as stated. As in previous years, management believes given the nature of the inventory items, costs exceed the benefits derived from implementing the recommendation. This is also the recommendation from Habitat for Humanity International, Inc.