FAC Explorer

Audit 303422

FY End
2023-12-31
Total Expended
$1.13M
Findings
4
Programs
1
Organization: Meadowood Glen Ii, Ltd. (ID)
Year: 2023 Accepted: 2024-04-12
Auditor: Magnuson McHugh Dougherty CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393082 2023-001 Significant Deficiency - N
393083 2023-001 Significant Deficiency - N
969524 2023-001 Significant Deficiency - N
969525 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.10M Yes 1

Contacts

Name Title Type
JRFUQQ246MM9 Holly Knapp Auditee
2086643095 Korby Baker Auditor
No contacts on file

Notes to SEFA

Title: 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Meadowood Glen II, Ltd. Project No. 124-EE008-WAH has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Meadowood Glen II, Ltd. Project No. 124-EE008-WAH has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Meadowood Glen II, Ltd. Project No. 124-EE008-WAH, 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 Part 220, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of operations of Meadowood Glen II, Ltd. Project No. 124-EE008-WAH, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Meadowood Glen II, Ltd. Project No. 124-EE008-WAH.
Title: Loan/Loan Guarantee Outstanding Balances 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Meadowood Glen II, Ltd. Project No. 124-EE008-WAH has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Meadowood Glen II, Ltd. Project No. 124-EE008-WAH has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were $1,104,300.

Finding Details

Finding 2023-001
Criteria: There is an expectation that the financial statements will be materially accurate when an auditor begins their final fieldwork on the audit after year-end. Minor adjustments are expected but overall, the balances should materially reflect the financial position of the entity. Condition: During our fieldwork, we found activity within the Residual Receipts account without HUD Approval. Cause: Client transferring funds to operating account, and then redepositing amounts at a later date. Effect: Client is not in compliance due to not having HUD approval for transactions within the Residual Receipts account. This could jeopardize their Section 202 status with HUD. Recommendation: It is our recommendation that the Project does not utilize funds within the Residual Receipts account without HUD approval, as this is required per the Compliance Supplement. Views of the Responsible Officials and Planned Corrective Actions: We understand the recommendations above and will take corrective action to implement the changes needed to ensure that funds are not utilized without HUD approval.
Finding 2023-001
Criteria: There is an expectation that the financial statements will be materially accurate when an auditor begins their final fieldwork on the audit after year-end. Minor adjustments are expected but overall, the balances should materially reflect the financial position of the entity. Condition: During our fieldwork, we found activity within the Residual Receipts account without HUD Approval. Cause: Client transferring funds to operating account, and then redepositing amounts at a later date. Effect: Client is not in compliance due to not having HUD approval for transactions within the Residual Receipts account. This could jeopardize their Section 202 status with HUD. Recommendation: It is our recommendation that the Project does not utilize funds within the Residual Receipts account without HUD approval, as this is required per the Compliance Supplement. Views of the Responsible Officials and Planned Corrective Actions: We understand the recommendations above and will take corrective action to implement the changes needed to ensure that funds are not utilized without HUD approval.
Finding 2023-001
Criteria: There is an expectation that the financial statements will be materially accurate when an auditor begins their final fieldwork on the audit after year-end. Minor adjustments are expected but overall, the balances should materially reflect the financial position of the entity. Condition: During our fieldwork, we found activity within the Residual Receipts account without HUD Approval. Cause: Client transferring funds to operating account, and then redepositing amounts at a later date. Effect: Client is not in compliance due to not having HUD approval for transactions within the Residual Receipts account. This could jeopardize their Section 202 status with HUD. Recommendation: It is our recommendation that the Project does not utilize funds within the Residual Receipts account without HUD approval, as this is required per the Compliance Supplement. Views of the Responsible Officials and Planned Corrective Actions: We understand the recommendations above and will take corrective action to implement the changes needed to ensure that funds are not utilized without HUD approval.
Finding 2023-001
Criteria: There is an expectation that the financial statements will be materially accurate when an auditor begins their final fieldwork on the audit after year-end. Minor adjustments are expected but overall, the balances should materially reflect the financial position of the entity. Condition: During our fieldwork, we found activity within the Residual Receipts account without HUD Approval. Cause: Client transferring funds to operating account, and then redepositing amounts at a later date. Effect: Client is not in compliance due to not having HUD approval for transactions within the Residual Receipts account. This could jeopardize their Section 202 status with HUD. Recommendation: It is our recommendation that the Project does not utilize funds within the Residual Receipts account without HUD approval, as this is required per the Compliance Supplement. Views of the Responsible Officials and Planned Corrective Actions: We understand the recommendations above and will take corrective action to implement the changes needed to ensure that funds are not utilized without HUD approval.