FAC Explorer

Audit 297925

FY End
2023-12-31
Total Expended
$1.08M
Findings
2
Programs
2
Organization: Friendship I Co. (ID)
Year: 2023 Accepted: 2024-03-26
Auditor: Harris CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
384814 2023-001 Significant Deficiency - C
961256 2023-001 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $913,321 Yes 1
14.182 Section 8 New Construction and Substantial Rehabilitation $169,298 - 0

Contacts

Name Title Type
QV4BXHL6LEM3 Katie Rosanbalm Auditee
2083436438 Troy Earl 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 UNIFORM GUIDANCE, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT De Minimis Rate Used: N Rate Explanation: FRIENDSHIP I CO. HAS ELECTED NOT TO USE THE 10-PERCENT DE MINIMIS INDIRECT COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS INCLUDES THE FEDERAL ASSISTANCE PROGRAMS OF FRIENDSHIP I CO. 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 FRIENDSHIP I CO., IT IS NOT INTENDED TO AND DOES NOT PRESENT THE FINANCIAL POSITION, CHANGES IN NET ASSETS OR CASH FLOWS OF FRIENDSHIP I CO.
Title: NOTE B- 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 UNIFORM GUIDANCE, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT De Minimis Rate Used: N Rate Explanation: FRIENDSHIP I CO. HAS ELECTED NOT TO USE THE 10-PERCENT DE MINIMIS INDIRECT COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. FRIENDSHIP I CO. HAS RECEIVED A U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT DIRECT LOAN UNDER SECTION 202 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. FRIENDSHIP I CO. RECEIVED NO ADDITIONAL LOANS DURING THE YEAR. THE BALANCE OF THE LOAN OUTSTANDING AT DECEMBER 31, 2023 CONSISTS OF $859,259

Finding Details

Finding 2023-001
DESCRIPTION OF FINDING: THE HUD REGULATORY AGREEMENT REQUIRES RESIDUAL RECEIPTS TO BE DEPOSITED INTO A SEPARATE INTEREST BEARING ACCOUNT WITHIN 60 DAYS AFTER THE END OF THE ANNUAL FISCAL YEAR. THIS DEPOSIT WAS NOT MADE WITHIN THE REQUIRED 60 DAYS. EFFECT: OUT OF COMPLIANCE WITH THE HUD REGULATORY AGREEMENT. RECOMMENDATIONS: WE RECOMMEND THAT THE ORGANIZATION COMPLETE A REVIEW OF THE PROPERTY RESTRICTED CASH ACCOUNTS ANNUALLY AND TO VERIFY REQUIRED TRANSFERS HAVE BEEN MADE. MANAGEMENT’S RESPONSE: DEPOSIT WAS MADE AS SOON AS THE ERROR WAS NOTED. ADDITIONALLY, ALL RESTRICTED ACCOUNTS WILL BE REVIEWED ANNUALLY TO ENSURE TRANSFERS ARE MADE.
Finding 2023-001
DESCRIPTION OF FINDING: THE HUD REGULATORY AGREEMENT REQUIRES RESIDUAL RECEIPTS TO BE DEPOSITED INTO A SEPARATE INTEREST BEARING ACCOUNT WITHIN 60 DAYS AFTER THE END OF THE ANNUAL FISCAL YEAR. THIS DEPOSIT WAS NOT MADE WITHIN THE REQUIRED 60 DAYS. EFFECT: OUT OF COMPLIANCE WITH THE HUD REGULATORY AGREEMENT. RECOMMENDATIONS: WE RECOMMEND THAT THE ORGANIZATION COMPLETE A REVIEW OF THE PROPERTY RESTRICTED CASH ACCOUNTS ANNUALLY AND TO VERIFY REQUIRED TRANSFERS HAVE BEEN MADE. MANAGEMENT’S RESPONSE: DEPOSIT WAS MADE AS SOON AS THE ERROR WAS NOTED. ADDITIONALLY, ALL RESTRICTED ACCOUNTS WILL BE REVIEWED ANNUALLY TO ENSURE TRANSFERS ARE MADE.