FAC Explorer

Audit 306570

FY End
2023-06-30
Total Expended
$1.16M
Findings
4
Programs
1
Organization: Breakthrough Phase I, Inc. (TN)
Year: 2023 Accepted: 2024-05-17
Auditor: Purkey Carter Compton Swann & Carter PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
397716 2023-001 Significant Deficiency - P
397717 2023-002 Significant Deficiency - P
974158 2023-001 Significant Deficiency - P
974159 2023-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $57,135 Yes 0

Contacts

Name Title Type
K85TVHSA3H33 Kendrise Colebrooke Auditee
8652470065 Paul Lynch, CPA Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal award activity of Breakthrough Phase I, Inc., and is presented on the full accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 US. 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 the Project, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Project. De Minimis Rate Used: Y Rate Explanation: NOTE B - DE MINIMIS INDIRECT COST RATE When applicable, Breakthrough Phase I, Inc. has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
FINDING NO. 2023-001: LATE REAC SUBMISSION FOR SECTION 811 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES, ALN #14.181 The Project did not timely submit audited financial statements with the U.S. Department of Housing and Urban Development Real Estate Assessment Center (REAC). CRITERIA: The Project is required to submit audited financial statements with the REAC system within 90 days after year end. CAUSE OF CONDITION: The Project did not have systems in place to submit the audited financial statements within the required 90 days. RECOMMENDATION: Auditor recommends management implement systems to ensure audited financial statements are submitted to REAC as required by the US. Department of Housing and Urban Development within 90 days after the fiscal year end.
Finding 2023-002
FINDING NO. 2023-002: INEFFECTIVE OPERATION OF INTERNAL CONTROLS BY MANAGEMENT Management conducted recertification of the Project’s tenants; however, cannot locate any tenant files for the fiscal year under audit. CRITERIA: According to HUD Handbook 4350.3, owners must conduct a recertification of family income and composition at least annually by the tenant’s recertification anniversary date. Owners then must recompute the tenants' rents and assistance payments, if applicable, based on the information gathered. Owners must also keep all tenant file and recertification documentation as required by HUD. CAUSE OF CONDITION: Management did not have systems in place to ensure tenant files and recertification documentation were kept in accordance with HUD requirements. RECOMMENDATION: Auditor recommends management review HUD Handbook 4350.3 and put proper internal controls in place to ensure tenant files are in compliance with HUD and kept in accordance with HUD requirements.
Finding 2023-001
FINDING NO. 2023-001: LATE REAC SUBMISSION FOR SECTION 811 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES, ALN #14.181 The Project did not timely submit audited financial statements with the U.S. Department of Housing and Urban Development Real Estate Assessment Center (REAC). CRITERIA: The Project is required to submit audited financial statements with the REAC system within 90 days after year end. CAUSE OF CONDITION: The Project did not have systems in place to submit the audited financial statements within the required 90 days. RECOMMENDATION: Auditor recommends management implement systems to ensure audited financial statements are submitted to REAC as required by the US. Department of Housing and Urban Development within 90 days after the fiscal year end.
Finding 2023-002
FINDING NO. 2023-002: INEFFECTIVE OPERATION OF INTERNAL CONTROLS BY MANAGEMENT Management conducted recertification of the Project’s tenants; however, cannot locate any tenant files for the fiscal year under audit. CRITERIA: According to HUD Handbook 4350.3, owners must conduct a recertification of family income and composition at least annually by the tenant’s recertification anniversary date. Owners then must recompute the tenants' rents and assistance payments, if applicable, based on the information gathered. Owners must also keep all tenant file and recertification documentation as required by HUD. CAUSE OF CONDITION: Management did not have systems in place to ensure tenant files and recertification documentation were kept in accordance with HUD requirements. RECOMMENDATION: Auditor recommends management review HUD Handbook 4350.3 and put proper internal controls in place to ensure tenant files are in compliance with HUD and kept in accordance with HUD requirements.