Audit 300438

FY End
2023-06-30
Total Expended
$12.55M
Findings
8
Programs
17
Organization: Friendship Community Care, Inc. (AR)
Year: 2023 Accepted: 2024-03-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
389469 2023-001 Material Weakness - P
389470 2023-001 Material Weakness - P
389471 2023-001 Material Weakness - P
389472 2023-001 Material Weakness - P
965911 2023-001 Material Weakness - P
965912 2023-001 Material Weakness - P
965913 2023-001 Material Weakness - P
965914 2023-001 Material Weakness - P

Contacts

Name Title Type
CYEZUTQ6GME3 Deborah Brown Auditee
4799672322 Sue Talkington Auditor
No contacts on file

Notes to SEFA

Title: HUD CAPITAL ADVANCES 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 the Uniform Guidance, Cost Principles for Nonprofit Organization, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For purposes of presentation on the Schedule, the Uniform Guidance requires that the balance of the Section 202 capital advances be included for each of the 40 years through which continuing compliance requirements must be met. For purposes of presentation on the Organizations consolidated financial statements, these balances are reported as HUD capital advances.
Title: AMERICAN RESCUE PLAN PAYMENTS 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 the Uniform Guidance, Cost Principles for Nonprofit Organization, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the year ended June 30, 2023 and 2022, the Organization receive $89,500 and $1,050,750, respectively, in American Rescue Plan Stabilization Funds (Assistance Listing Number 93.575) from the United States Department of Human Services and passed through the Arkansas Department of Human Services. These monies are not reported on the Schedule because these funds are not subject to the reporting requirements contained in the Uniform Guidance.
Title: MEDICAID 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 the Uniform Guidance, Cost Principles for Nonprofit Organization, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Medical Assistance Program (Title XIX) revenues amounted to $39,858,452 during the year ended June 30, 2023.
Title: RENTAL ASSISTANCE PAYMENTS 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 the Uniform Guidance, Cost Principles for Nonprofit Organization, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Tenant assistance payments amounted to $594,384 during the year ended June 30, 2023.

Finding Details

2023-001: Failure to remit - HUD entities Condition: The residual receipts account balance exceeds more than $250 per unit. Criteria and Cause: The Project did not remit residual receipts in excess of $250 per unit upon termination of the PRAC. Effect: The Project is not in compliance with HUD memorandum issued March 11, 2016. Recommendation: The management agent should establish controls to ensure excess residual receipts are timely and accurately remitted.
2023-001: Failure to remit - HUD entities Condition: The residual receipts account balance exceeds more than $250 per unit. Criteria and Cause: The Project did not remit residual receipts in excess of $250 per unit upon termination of the PRAC. Effect: The Project is not in compliance with HUD memorandum issued March 11, 2016. Recommendation: The management agent should establish controls to ensure excess residual receipts are timely and accurately remitted.
2023-001: Failure to remit - HUD entities Condition: The residual receipts account balance exceeds more than $250 per unit. Criteria and Cause: The Project did not remit residual receipts in excess of $250 per unit upon termination of the PRAC. Effect: The Project is not in compliance with HUD memorandum issued March 11, 2016. Recommendation: The management agent should establish controls to ensure excess residual receipts are timely and accurately remitted.
2023-001: Failure to remit - HUD entities Condition: The residual receipts account balance exceeds more than $250 per unit. Criteria and Cause: The Project did not remit residual receipts in excess of $250 per unit upon termination of the PRAC. Effect: The Project is not in compliance with HUD memorandum issued March 11, 2016. Recommendation: The management agent should establish controls to ensure excess residual receipts are timely and accurately remitted.
2023-001: Failure to remit - HUD entities Condition: The residual receipts account balance exceeds more than $250 per unit. Criteria and Cause: The Project did not remit residual receipts in excess of $250 per unit upon termination of the PRAC. Effect: The Project is not in compliance with HUD memorandum issued March 11, 2016. Recommendation: The management agent should establish controls to ensure excess residual receipts are timely and accurately remitted.
2023-001: Failure to remit - HUD entities Condition: The residual receipts account balance exceeds more than $250 per unit. Criteria and Cause: The Project did not remit residual receipts in excess of $250 per unit upon termination of the PRAC. Effect: The Project is not in compliance with HUD memorandum issued March 11, 2016. Recommendation: The management agent should establish controls to ensure excess residual receipts are timely and accurately remitted.
2023-001: Failure to remit - HUD entities Condition: The residual receipts account balance exceeds more than $250 per unit. Criteria and Cause: The Project did not remit residual receipts in excess of $250 per unit upon termination of the PRAC. Effect: The Project is not in compliance with HUD memorandum issued March 11, 2016. Recommendation: The management agent should establish controls to ensure excess residual receipts are timely and accurately remitted.
2023-001: Failure to remit - HUD entities Condition: The residual receipts account balance exceeds more than $250 per unit. Criteria and Cause: The Project did not remit residual receipts in excess of $250 per unit upon termination of the PRAC. Effect: The Project is not in compliance with HUD memorandum issued March 11, 2016. Recommendation: The management agent should establish controls to ensure excess residual receipts are timely and accurately remitted.