Audit 297957

FY End
2023-06-30
Total Expended
$1.63M
Findings
12
Programs
2
Year: 2023 Accepted: 2024-03-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
384830 2023-001 Significant Deficiency Yes P
384831 2023-002 Significant Deficiency Yes P
384832 2023-003 Significant Deficiency Yes P
384833 2023-001 Significant Deficiency Yes P
384834 2023-002 Significant Deficiency Yes P
384835 2023-003 Significant Deficiency Yes P
961272 2023-001 Significant Deficiency Yes P
961273 2023-002 Significant Deficiency Yes P
961274 2023-003 Significant Deficiency Yes P
961275 2023-001 Significant Deficiency Yes P
961276 2023-002 Significant Deficiency Yes P
961277 2023-003 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $1.38M Yes 3
10.427 Rural Rental Assistance Payments $250,572 - 3

Contacts

Name Title Type
Y5E4BL7NGNU7 Michelle Ross Auditee
8142372972 Stanley N Roseberry IV Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: See Form Tab De Minimis Rate Used: N Rate Explanation: N/A The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Williamsburg Area Improved Dwellings, Inc. (the “Organization”) 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 the Office of Management and Budget (OMB) Uniform Guidance. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: BASIS OF ACCOUNTING Accounting Policies: See Form Tab De Minimis Rate Used: N Rate Explanation: N/A Expenditures reported in the Schedule of Federal Awards 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 recognized are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The Federal CFDA number refers to the designation of the program within the Catalog of Federal Domestic Assistance.

Finding Details

2023-001 Segregation of Duties Criteria: There should be adequate segregation of duties within the entity's accounting department to ensure effective internal control. Condition: There is a lack of segregation within Williamsburg Area Improved Dwellings, Inc.'s ("WAID") accounting department. Effect: Errors or misstatements may not be detected. Cause: WAID only has one staff person in its accounting department. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Implementation of compensating controls to mitigate the lack of segregation. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2023-002 Inadequate Documentation of the Components of Internal Control Criteria: The components of internal control and the related processes should be clearly documented and all employees should be aware of them. Condition: Although functioning controls are in place they have not been documented. Effect: There is a risk that G;ontrols may become ineffective due to staff turnover or deterioration of processes. Cause: The limited staff of WAID has precluded them from documenting control procedures. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Document existing control policies and procedures. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2023-003 Knowledge of Generally Accepted Accounting Principles to Prepare Financial Statements Criteria: Management is tasked with assigning an individual with the experience and/or knowledge to review the financial statements and ensure compliance with generally accepted accounting principles. Condition: WAID's management does not possess the appropriate level of accounting knowledge to ensure that the financial statements comply with generally accepted accounting principles. Effect: Financial statements may no be in compliance with generally accepted accounting principles. Cause: Due to the relatively small size of WAID they are unable to support a staff member with the appropriate level of accounting knowledge to ensure the financial statements conform to generally accepted accounting principles. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: WAID management should review the financial statements comparing them to a list of disclosure requirements in accordance with generally accepted accounting principles to ensure compliance. Management's Response: WAID agrees with this finding and will adhere to
2023-001 Segregation of Duties Criteria: There should be adequate segregation of duties within the entity's accounting department to ensure effective internal control. Condition: There is a lack of segregation within Williamsburg Area Improved Dwellings, Inc.'s ("WAID") accounting department. Effect: Errors or misstatements may not be detected. Cause: WAID only has one staff person in its accounting department. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Implementation of compensating controls to mitigate the lack of segregation. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2023-002 Inadequate Documentation of the Components of Internal Control Criteria: The components of internal control and the related processes should be clearly documented and all employees should be aware of them. Condition: Although functioning controls are in place they have not been documented. Effect: There is a risk that G;ontrols may become ineffective due to staff turnover or deterioration of processes. Cause: The limited staff of WAID has precluded them from documenting control procedures. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Document existing control policies and procedures. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2023-003 Knowledge of Generally Accepted Accounting Principles to Prepare Financial Statements Criteria: Management is tasked with assigning an individual with the experience and/or knowledge to review the financial statements and ensure compliance with generally accepted accounting principles. Condition: WAID's management does not possess the appropriate level of accounting knowledge to ensure that the financial statements comply with generally accepted accounting principles. Effect: Financial statements may no be in compliance with generally accepted accounting principles. Cause: Due to the relatively small size of WAID they are unable to support a staff member with the appropriate level of accounting knowledge to ensure the financial statements conform to generally accepted accounting principles. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: WAID management should review the financial statements comparing them to a list of disclosure requirements in accordance with generally accepted accounting principles to ensure compliance. Management's Response: WAID agrees with this finding and will adhere to
2023-001 Segregation of Duties Criteria: There should be adequate segregation of duties within the entity's accounting department to ensure effective internal control. Condition: There is a lack of segregation within Williamsburg Area Improved Dwellings, Inc.'s ("WAID") accounting department. Effect: Errors or misstatements may not be detected. Cause: WAID only has one staff person in its accounting department. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Implementation of compensating controls to mitigate the lack of segregation. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2023-002 Inadequate Documentation of the Components of Internal Control Criteria: The components of internal control and the related processes should be clearly documented and all employees should be aware of them. Condition: Although functioning controls are in place they have not been documented. Effect: There is a risk that G;ontrols may become ineffective due to staff turnover or deterioration of processes. Cause: The limited staff of WAID has precluded them from documenting control procedures. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Document existing control policies and procedures. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2023-003 Knowledge of Generally Accepted Accounting Principles to Prepare Financial Statements Criteria: Management is tasked with assigning an individual with the experience and/or knowledge to review the financial statements and ensure compliance with generally accepted accounting principles. Condition: WAID's management does not possess the appropriate level of accounting knowledge to ensure that the financial statements comply with generally accepted accounting principles. Effect: Financial statements may no be in compliance with generally accepted accounting principles. Cause: Due to the relatively small size of WAID they are unable to support a staff member with the appropriate level of accounting knowledge to ensure the financial statements conform to generally accepted accounting principles. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: WAID management should review the financial statements comparing them to a list of disclosure requirements in accordance with generally accepted accounting principles to ensure compliance. Management's Response: WAID agrees with this finding and will adhere to
2023-001 Segregation of Duties Criteria: There should be adequate segregation of duties within the entity's accounting department to ensure effective internal control. Condition: There is a lack of segregation within Williamsburg Area Improved Dwellings, Inc.'s ("WAID") accounting department. Effect: Errors or misstatements may not be detected. Cause: WAID only has one staff person in its accounting department. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Implementation of compensating controls to mitigate the lack of segregation. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2023-002 Inadequate Documentation of the Components of Internal Control Criteria: The components of internal control and the related processes should be clearly documented and all employees should be aware of them. Condition: Although functioning controls are in place they have not been documented. Effect: There is a risk that G;ontrols may become ineffective due to staff turnover or deterioration of processes. Cause: The limited staff of WAID has precluded them from documenting control procedures. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Document existing control policies and procedures. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2023-003 Knowledge of Generally Accepted Accounting Principles to Prepare Financial Statements Criteria: Management is tasked with assigning an individual with the experience and/or knowledge to review the financial statements and ensure compliance with generally accepted accounting principles. Condition: WAID's management does not possess the appropriate level of accounting knowledge to ensure that the financial statements comply with generally accepted accounting principles. Effect: Financial statements may no be in compliance with generally accepted accounting principles. Cause: Due to the relatively small size of WAID they are unable to support a staff member with the appropriate level of accounting knowledge to ensure the financial statements conform to generally accepted accounting principles. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: WAID management should review the financial statements comparing them to a list of disclosure requirements in accordance with generally accepted accounting principles to ensure compliance. Management's Response: WAID agrees with this finding and will adhere to