FAC Explorer

Audit 299197

FY End
2023-06-30
Total Expended
$1.04M
Findings
4
Programs
1
Organization: Mental Health Center of Champaign County Housing Corporation (IL)
Year: 2023 Accepted: 2024-03-28
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
386881 2023-002 Material Weakness - N
386882 2023-002 Material Weakness - N
963323 2023-002 Material Weakness - N
963324 2023-002 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $57,574 Yes 1

Contacts

Name Title Type
C2HMDLFSRM58 Michael Vick Auditee
8153875642 Krista K. Pankop Auditor
No contacts on file

Notes to SEFA

Title: Capital Advance S3300-510 Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures 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. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The capital advance at the beginning of the year is included in the federal expenditures presented in the Schedule. This is also the balance at June 30, 2023.
Title: Basis of Presentation S3300-510 Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures 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. De Minimis Rate Used: N Rate Explanation: The Project 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 (the Schedule) includes the federal award activity of Mental Health Center of Champaign County Housing Corporation (the Project) 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 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 the Project, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Project.

Finding Details

Finding 2023-002
Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing Number: 14.181 Program: Supportive Housing for Persons with Disabilities Criteria: Uniform Guidance states that controls should be implemented to ensure the Project is in compliance with special tests and provisions. As stated in the Coronavirus Disease 2019 memorandum released by HUD, remittance of residual receipts were suspended through December 31, 2021. Residual receipts were due to HUD by the next Project Rental Assistance Contracts renewal which was October 1, 2022. Condition: Management did not remit payment to HUD for the amount in excess of $250 per unit for their fifteen units. Cause: Management was unaware the funds needed to be remitted back to HUD in the time frame noted. Effect: The project was not in compliance with the HUD requirement to remit the excess residual receipts within the required time frame. Questioned Costs: The amount of questioned costs is $30,605. Context: The Project is allowed to retain $250 per unit per HUD guidance. With 15 units this amounts to $3,750. The residual receipts balance at June 30, 2023 is $34,355 which results in questioned costs of $30,605. Recommendation: We recommend management review their processes and controls surrounding residual receipts to ensure amounts due to HUD are properly remitted. Management's Response: Management has updated their internal controls to ensure a proper review of residual receipts is conducted quarterly. This review will be completed by an assigned staff member, with a secondary review completed by management. Residual receipts in excess of allowed amounts will be properly accounted for as a liability on the books and records of the Project. Residual receipts in excess of the allowed amounts will be remitted when due.
Finding 2023-002
Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing Number: 14.181 Program: Supportive Housing for Persons with Disabilities Criteria: Uniform Guidance states that controls should be implemented to ensure the Project is in compliance with special tests and provisions. As stated in the Coronavirus Disease 2019 memorandum released by HUD, remittance of residual receipts were suspended through December 31, 2021. Residual receipts were due to HUD by the next Project Rental Assistance Contracts renewal which was October 1, 2022. Condition: Management did not remit payment to HUD for the amount in excess of $250 per unit for their fifteen units. Cause: Management was unaware the funds needed to be remitted back to HUD in the time frame noted. Effect: The project was not in compliance with the HUD requirement to remit the excess residual receipts within the required time frame. Questioned Costs: The amount of questioned costs is $30,605. Context: The Project is allowed to retain $250 per unit per HUD guidance. With 15 units this amounts to $3,750. The residual receipts balance at June 30, 2023 is $34,355 which results in questioned costs of $30,605. Recommendation: We recommend management review their processes and controls surrounding residual receipts to ensure amounts due to HUD are properly remitted. Management's Response: Management has updated their internal controls to ensure a proper review of residual receipts is conducted quarterly. This review will be completed by an assigned staff member, with a secondary review completed by management. Residual receipts in excess of allowed amounts will be properly accounted for as a liability on the books and records of the Project. Residual receipts in excess of the allowed amounts will be remitted when due.
Finding 2023-002
Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing Number: 14.181 Program: Supportive Housing for Persons with Disabilities Criteria: Uniform Guidance states that controls should be implemented to ensure the Project is in compliance with special tests and provisions. As stated in the Coronavirus Disease 2019 memorandum released by HUD, remittance of residual receipts were suspended through December 31, 2021. Residual receipts were due to HUD by the next Project Rental Assistance Contracts renewal which was October 1, 2022. Condition: Management did not remit payment to HUD for the amount in excess of $250 per unit for their fifteen units. Cause: Management was unaware the funds needed to be remitted back to HUD in the time frame noted. Effect: The project was not in compliance with the HUD requirement to remit the excess residual receipts within the required time frame. Questioned Costs: The amount of questioned costs is $30,605. Context: The Project is allowed to retain $250 per unit per HUD guidance. With 15 units this amounts to $3,750. The residual receipts balance at June 30, 2023 is $34,355 which results in questioned costs of $30,605. Recommendation: We recommend management review their processes and controls surrounding residual receipts to ensure amounts due to HUD are properly remitted. Management's Response: Management has updated their internal controls to ensure a proper review of residual receipts is conducted quarterly. This review will be completed by an assigned staff member, with a secondary review completed by management. Residual receipts in excess of allowed amounts will be properly accounted for as a liability on the books and records of the Project. Residual receipts in excess of the allowed amounts will be remitted when due.
Finding 2023-002
Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing Number: 14.181 Program: Supportive Housing for Persons with Disabilities Criteria: Uniform Guidance states that controls should be implemented to ensure the Project is in compliance with special tests and provisions. As stated in the Coronavirus Disease 2019 memorandum released by HUD, remittance of residual receipts were suspended through December 31, 2021. Residual receipts were due to HUD by the next Project Rental Assistance Contracts renewal which was October 1, 2022. Condition: Management did not remit payment to HUD for the amount in excess of $250 per unit for their fifteen units. Cause: Management was unaware the funds needed to be remitted back to HUD in the time frame noted. Effect: The project was not in compliance with the HUD requirement to remit the excess residual receipts within the required time frame. Questioned Costs: The amount of questioned costs is $30,605. Context: The Project is allowed to retain $250 per unit per HUD guidance. With 15 units this amounts to $3,750. The residual receipts balance at June 30, 2023 is $34,355 which results in questioned costs of $30,605. Recommendation: We recommend management review their processes and controls surrounding residual receipts to ensure amounts due to HUD are properly remitted. Management's Response: Management has updated their internal controls to ensure a proper review of residual receipts is conducted quarterly. This review will be completed by an assigned staff member, with a secondary review completed by management. Residual receipts in excess of allowed amounts will be properly accounted for as a liability on the books and records of the Project. Residual receipts in excess of the allowed amounts will be remitted when due.