Audit 302867

FY End
2023-12-31
Total Expended
$912,124
Findings
2
Programs
3
Year: 2023 Accepted: 2024-04-08
Auditor: Horne

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
392589 2023-001 Significant Deficiency Yes N
969031 2023-001 Significant Deficiency Yes N

Contacts

Name Title Type
KN5AEKZ93CL6 Jim Zuelzke Auditee
6628449053 Kade Moody Auditor
No contacts on file

Notes to SEFA

Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Note 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal loan activity and award activity of Hattiesburg Area Senior Services, Inc., d/b/a Wesley Manor I, HUD Project No. 065-EH084 (the "Company") under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations ("CFR") 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 Company, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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, 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.
Title: Note 3. Indirect Cost Rate Accounting Policies: Note 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal loan activity and award activity of Hattiesburg Area Senior Services, Inc., d/b/a Wesley Manor I, HUD Project No. 065-EH084 (the "Company") under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations ("CFR") 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 Company, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Company has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 4. Federal Loan Program Accounting Policies: Note 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal loan activity and award activity of Hattiesburg Area Senior Services, Inc., d/b/a Wesley Manor I, HUD Project No. 065-EH084 (the "Company") under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations ("CFR") 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 Company, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal loan program listed subsequently is administered directly by the Company, and balances and transactions relating to this program are included in the Company's basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The loan balance outstanding at December 31, 2023, consists of: CFDA Number Program Name Outstanding Balance December 31, 2023 14.157 Supportive Housing for the Elderly (Section 202) $ 359,422

Finding Details

Section III – Findings and Questioned Costs for Federal Awards Finding No. 2023-001, ALN 14.157 Equal Housing Opportunity Logo Criteria: HUD requires that the HUD-approved equal housing opportunity logo, slogan or statement be displayed on all marketing materials released to the public. Condition: The Company produced a commercial advertisement during the year ended December 31, 2023, which did not include the equal housing opportunity logo, slogan or statement as required. Cause: Oversight controls, when marketing materials were originally produced by the Company, they were not operating properly to ensure compliance with HUD standards. Effect: Failure to include the equal housing opportunity logo, slogan or statement may be perceived as an indication of discriminatory housing practices. Auditor’s Recommendation: We recommend that all current marketing materials without the equal housing opportunity logo be corrected, and any future materials produced include the equal housing opportunity logo. Auditee’s Response: Refer to Management's Corrective Action Plan included within this reporting package.
Section III – Findings and Questioned Costs for Federal Awards Finding No. 2023-001, ALN 14.157 Equal Housing Opportunity Logo Criteria: HUD requires that the HUD-approved equal housing opportunity logo, slogan or statement be displayed on all marketing materials released to the public. Condition: The Company produced a commercial advertisement during the year ended December 31, 2023, which did not include the equal housing opportunity logo, slogan or statement as required. Cause: Oversight controls, when marketing materials were originally produced by the Company, they were not operating properly to ensure compliance with HUD standards. Effect: Failure to include the equal housing opportunity logo, slogan or statement may be perceived as an indication of discriminatory housing practices. Auditor’s Recommendation: We recommend that all current marketing materials without the equal housing opportunity logo be corrected, and any future materials produced include the equal housing opportunity logo. Auditee’s Response: Refer to Management's Corrective Action Plan included within this reporting package.