FAC Explorer

Audit 305509

FY End
2023-06-30
Total Expended
$6.79M
Findings
4
Programs
2
Organization: Birmingham Green Assisted Living, Inc. (VA)
Year: 2023 Accepted: 2024-05-06
Auditor: Walker Healthcare Services Group CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
395881 2023-001 Material Weakness - L
395882 2023-002 Significant Deficiency - L
972323 2023-001 Material Weakness - L
972324 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $6.32M Yes 2
14.195 Section 8 Housing Assistance Payments Program $470,646 - 0

Contacts

Name Title Type
MET9CTA2G357 Perry Mason Auditee
7032570935 Stephanie Richardson Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – BASIS OF PRESENTATION Accounting Policies: NOTE A – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of Birmingham Green Assisted Living, Inc., HUD Project Number 000-EE057 (the Project), and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project. NOTE B – 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 OMB Circular A-122, Cost Principles for Not-for-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The project is not required to allocate indirect costs. De Minimis Rate Used: N Rate Explanation: Not used, not applicable The accompanying schedule of expenditures of federal awards includes the federal grant activity of Birmingham Green Assisted Living, Inc., HUD Project Number 000-EE057 (the Project), and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE A – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of Birmingham Green Assisted Living, Inc., HUD Project Number 000-EE057 (the Project), and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project. NOTE B – 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 OMB Circular A-122, Cost Principles for Not-for-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The project is not required to allocate indirect costs. De Minimis Rate Used: N Rate Explanation: Not used, not applicable Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-122, Cost Principles for Not-for-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The project is not required to allocate indirect costs.

Finding Details

Finding 2023-001
CORRECTIVE ACTION NOT STARTED OR IN PROCESS Finding Number 2023-001: Federal Program: CFDA 14.157 – Section 202 Capital Advance Type: Financial Statement Statement of Condition: During the June 30, 2023 audit, accounting errors were detected. Transactions related to specific invoices recorded in the prior year were recorded again in the accounting system in the current year. Additionally, invoices previously paid were still included in accounts payable. Prior year audit entries were not recorded. Criteria: Accounting records not properly maintained. Effect: Inaccurate accounting results in misstated financial reports and incorrect surplus cash calculations. Cause: Reconciliations are not being effectively performed between the management agent and Project owner to ensure accounting records are accurate and updated. Additionally, journal entries, including entries resulting from the audit, are not always consistently recorded by the management agent. Reconciliations to the audited financial statements are not performed. Recommendation: Management needs to ensure accrual basis of accounting is maintained. Accounting records need to be reconciled between management agent and Project owner and to the audited financial statements to ensure all entries have been made and the financial records current and accurate. Track invoices to ensure they are correctly recorded in the financial statements and when paid, they are properly removed from the schedules. Management’s Response: Management concurs with the auditor’s finding that the Project’s accounting records should be maintained and reconciled between management agent and Project owner and the audited financial statement. Communications and reconciliations will begin immediately.
Finding 2023-002
Finding Number 2023-002: Federal Program: CFDA 14.157 – Section 202 Capital Advance Type: Financial Statement Statement of Condition: Related party transactions are not always communicated and recorded in a timely manner. Criteria: Accounting records not properly maintained. Effect: Misstated financial reports result from inaccurate accounting records, inaccurate surplus cash calculations. Unrecorded transactions. Cause: Transactions processed on behalf of the Project by related parties are not always timely communicated to the management agent creating delay in recording, causing differences and reconciling items between management agent and Project owner accounting records. Recommendation: Management needs to ensure accounting transactions affecting related parties are communicated in a timely manner to ensure accuracy and agreement between the entities. Management’s Response: Management concurs with the auditor’s finding that the Project’s related parties should communicate and reconcile accounting transactions in a timely manner. Communications and reconciliation will begin immediately.
Finding 2023-001
CORRECTIVE ACTION NOT STARTED OR IN PROCESS Finding Number 2023-001: Federal Program: CFDA 14.157 – Section 202 Capital Advance Type: Financial Statement Statement of Condition: During the June 30, 2023 audit, accounting errors were detected. Transactions related to specific invoices recorded in the prior year were recorded again in the accounting system in the current year. Additionally, invoices previously paid were still included in accounts payable. Prior year audit entries were not recorded. Criteria: Accounting records not properly maintained. Effect: Inaccurate accounting results in misstated financial reports and incorrect surplus cash calculations. Cause: Reconciliations are not being effectively performed between the management agent and Project owner to ensure accounting records are accurate and updated. Additionally, journal entries, including entries resulting from the audit, are not always consistently recorded by the management agent. Reconciliations to the audited financial statements are not performed. Recommendation: Management needs to ensure accrual basis of accounting is maintained. Accounting records need to be reconciled between management agent and Project owner and to the audited financial statements to ensure all entries have been made and the financial records current and accurate. Track invoices to ensure they are correctly recorded in the financial statements and when paid, they are properly removed from the schedules. Management’s Response: Management concurs with the auditor’s finding that the Project’s accounting records should be maintained and reconciled between management agent and Project owner and the audited financial statement. Communications and reconciliations will begin immediately.
Finding 2023-002
Finding Number 2023-002: Federal Program: CFDA 14.157 – Section 202 Capital Advance Type: Financial Statement Statement of Condition: Related party transactions are not always communicated and recorded in a timely manner. Criteria: Accounting records not properly maintained. Effect: Misstated financial reports result from inaccurate accounting records, inaccurate surplus cash calculations. Unrecorded transactions. Cause: Transactions processed on behalf of the Project by related parties are not always timely communicated to the management agent creating delay in recording, causing differences and reconciling items between management agent and Project owner accounting records. Recommendation: Management needs to ensure accounting transactions affecting related parties are communicated in a timely manner to ensure accuracy and agreement between the entities. Management’s Response: Management concurs with the auditor’s finding that the Project’s related parties should communicate and reconcile accounting transactions in a timely manner. Communications and reconciliation will begin immediately.