FAC Explorer

Audit 304971

FY End
2023-12-31
Total Expended
$945,844
Findings
2
Programs
2
Organization: Salvation Manor, Inc. (LA)
Year: 2023 Accepted: 2024-04-29
Auditor: Wharton CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
395036 2023-001 Significant Deficiency - N
971478 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $917,600 Yes 1
14.195 Section 8 Housing Assistance Payments Program $28,244 - 0

Contacts

Name Title Type
GC4DWF7MJ2X1 Thomas J. Smith Auditee
9858631998 Brendel Wharton Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Summary of Significant Accounting Policies Accounting Policies: This schedule includes the activity of Salvation Manor Inc (HUD Project No 064-EE-108) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the audit 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). De Minimis Rate Used: N Rate Explanation: Salvation Manor, Inc. did not use the 10% de minimis cost rate. Basis of Presentation - This schedule includes the activity of Salvation Manor, Inc. (HUD Project No. 064-EE-108) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the audit requirements of Title 2 U.S. Code of the Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Title: Indirect Cost Rate Accounting Policies: This schedule includes the activity of Salvation Manor Inc (HUD Project No 064-EE-108) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the audit 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). De Minimis Rate Used: N Rate Explanation: Salvation Manor, Inc. did not use the 10% de minimis cost rate. Salvation Manor, Inc. did not use the 10% de minimis cost rate.
Title: Loan/Loan Guarantee Outstanding Balance Accounting Policies: This schedule includes the activity of Salvation Manor Inc (HUD Project No 064-EE-108) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the audit 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). De Minimis Rate Used: N Rate Explanation: Salvation Manor, Inc. did not use the 10% de minimis cost rate. Supportive Housing for the Elderly – Capital Advance - The balance outstanding at the end of the audit period was $917,600.

Finding Details

Finding 2023-001
2023-1 Transfer from Replacement Reserve Account Without Prior HUD Approval Condition: There was a $4,000 transfer made from the Replacement Reserve account to the Operating Account in December 2023. Criteria: According to HUD 4350.1-Rev-1 requires owners/mortgagors to request prior approval from HUD for use of replacement reserve funds. Cause: A $4,000 transfer was made in December 2023 from the Replacement Reserve account without an approved 9250 on file. HUD approval was received in January 2024. Effect: The Project is not in compliance with HUD regulations as it relates to obtaining proper approval prior to use of replacement reserve funds. Recommendation: I recommend management follow regulations in HUD 4350.1-Rev-1.
Finding 2023-001
2023-1 Transfer from Replacement Reserve Account Without Prior HUD Approval Condition: There was a $4,000 transfer made from the Replacement Reserve account to the Operating Account in December 2023. Criteria: According to HUD 4350.1-Rev-1 requires owners/mortgagors to request prior approval from HUD for use of replacement reserve funds. Cause: A $4,000 transfer was made in December 2023 from the Replacement Reserve account without an approved 9250 on file. HUD approval was received in January 2024. Effect: The Project is not in compliance with HUD regulations as it relates to obtaining proper approval prior to use of replacement reserve funds. Recommendation: I recommend management follow regulations in HUD 4350.1-Rev-1.