FAC Explorer

Audit 30448

FY End
2022-12-31
Total Expended
$1.39M
Findings
2
Programs
1
Organization: Scott Mitchell Annex, Inc. 053-Ee-163 (NC)
Year: 2022 Accepted: 2023-04-24
Auditor: Bernard Robinson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
29954 2022-001 - Yes P
606396 2022-001 - Yes P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.39M Yes 1

Contacts

Name Title Type
DETAYVETZGJ9 Michael Jameyson Auditee
7047711696 Erica Vernon Auditor
No contacts on file

Notes to SEFA

Title: LOAN OUTSTANDING Accounting Policies: SUMMARY OF SIGNIFICANT 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. Scott Mitchell Annex, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Scott Mitchell Annex, Inc. had the following loan balance, related to federal awards,outstanding as of December 31, 2022: Program Title - Supportive Housing for the Elderly (Section 202); Assistance Listing Number - 14.157; Amount Outstanding - $1,352,300.
Title: BASIS OF PRESENTATION Accounting Policies: SUMMARY OF SIGNIFICANT 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. Scott Mitchell Annex, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the 'Schedule') includes the federal award activity of Scott Mitchell Annex, Inc., under programs of the federal government for the year ended December 31, 2022. 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 Scott Mitchell Annex, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Scott Mitchell Annex, Inc.

Finding Details

Finding 2022-001
Finding 2022-001 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), Assistance Listing #14.157 Statement of Condition: The Corporation did not submit its annual financial report, certified by a Certified Public Accountant, to HUD within 90 days following of the end of the fiscal year December 31, 2021. Criteria: HUD requirements, under the Uniform Financial Reporting Standards for HUD Housing Programs; Final Rule, and the Regulatory Agreement require that the Project's annual financial statements report be submitted to HUD within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations and the possibility that the Project could be subject to criminal and civil monetary penalties. Cause: The completion of the audit for the fiscal year ended December 31, 2021 was delayed due to the lack of cash flow to pay prior years' audit expense. Context: A test was performed to review the most recent fiscal year audit submission to HUD. The annual financial statement report for the fiscal year December 31, 2021 was found to have not been submitted to HUD within 90 days following the end of the fiscal year December 31, 2021. Questioned Costs: N/A Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. We also recommend that the project request funds from replacement reserve to fund the annual audit expense. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report, certified by a Certified Public Accountant, for the year ended December 31, 2021 was not submitted to HUD within the required due date. On May 2, 2022, management received authorization from HUD to take a temporary loan from the replacement reserve to pay the prior years' audit expenses owed. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. The annual financial report for the fiscal year ended December 31, 2021 was submitted to HUD on July 27, 2022.
Finding 2022-001
Finding 2022-001 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), Assistance Listing #14.157 Statement of Condition: The Corporation did not submit its annual financial report, certified by a Certified Public Accountant, to HUD within 90 days following of the end of the fiscal year December 31, 2021. Criteria: HUD requirements, under the Uniform Financial Reporting Standards for HUD Housing Programs; Final Rule, and the Regulatory Agreement require that the Project's annual financial statements report be submitted to HUD within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations and the possibility that the Project could be subject to criminal and civil monetary penalties. Cause: The completion of the audit for the fiscal year ended December 31, 2021 was delayed due to the lack of cash flow to pay prior years' audit expense. Context: A test was performed to review the most recent fiscal year audit submission to HUD. The annual financial statement report for the fiscal year December 31, 2021 was found to have not been submitted to HUD within 90 days following the end of the fiscal year December 31, 2021. Questioned Costs: N/A Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. We also recommend that the project request funds from replacement reserve to fund the annual audit expense. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report, certified by a Certified Public Accountant, for the year ended December 31, 2021 was not submitted to HUD within the required due date. On May 2, 2022, management received authorization from HUD to take a temporary loan from the replacement reserve to pay the prior years' audit expenses owed. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. The annual financial report for the fiscal year ended December 31, 2021 was submitted to HUD on July 27, 2022.