FAC Explorer

Audit 292428

FY End
2023-06-30
Total Expended
$7.17M
Findings
2
Programs
1
Organization: Willow Oak Montessori Foundation, Inc. (NC)
Year: 2023 Accepted: 2024-02-27
Auditor: Langdon & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
370786 2023-002 Significant Deficiency - N
947228 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $7.17M Yes 1

Contacts

Name Title Type
TX9XLZDNLCM3 Jon Groves Auditee
9192407787 Karen Stanley Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Foundation 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. The Foundation has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - Balances outstanding at the end of the audit period were 6936379

Finding Details

Finding 2023-002
Condition & Criteria: In accordance with the promissory notes, Letters of Conditions and Loan Resolution Documents, the Foundation is required to make monthly deposits into a reserve account. One of the monthly deposits was not made and the account balance fell short of the requirement at year end. Cause: Lack of oversight on timing of monthly deposit resulting in deposit being made late. Effect: Noncompliance with executed loan documents. Auditor’s Recommendation: We recommend monitoring of the compliance requirements throughout the year and as part of the financial statement close process including reconciliation of all reserve accounts to ensure all have required amounts. In addition, we recommend and noted the Foundation has deposited the required amount into the account subsequent to year end. Views of Responsible Officials and Planned Corrective Actions: The Foundation remedied the deficiency by depositing the required amount into the account and has an ongoing autopay set up to ensure the monthly amounts are deposited. In addition, the Foundation will reconcile the accounts regularly to ensure the requirement for the account is met.
Finding 2023-002
Condition & Criteria: In accordance with the promissory notes, Letters of Conditions and Loan Resolution Documents, the Foundation is required to make monthly deposits into a reserve account. One of the monthly deposits was not made and the account balance fell short of the requirement at year end. Cause: Lack of oversight on timing of monthly deposit resulting in deposit being made late. Effect: Noncompliance with executed loan documents. Auditor’s Recommendation: We recommend monitoring of the compliance requirements throughout the year and as part of the financial statement close process including reconciliation of all reserve accounts to ensure all have required amounts. In addition, we recommend and noted the Foundation has deposited the required amount into the account subsequent to year end. Views of Responsible Officials and Planned Corrective Actions: The Foundation remedied the deficiency by depositing the required amount into the account and has an ongoing autopay set up to ensure the monthly amounts are deposited. In addition, the Foundation will reconcile the accounts regularly to ensure the requirement for the account is met.