Audit 306909

FY End
2023-06-30
Total Expended
$1.42M
Findings
2
Programs
1
Organization: Tradewinds, Inc. (MO)
Year: 2023 Accepted: 2024-05-22

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
398239 2023-001 - Yes L
974681 2023-001 - Yes L

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.42M Yes 1

Contacts

Name Title Type
F4TYRBN32L16 Vickie Akin Auditee
6608272100 Judith Ward Auditor
No contacts on file

Notes to SEFA

Title: Basia 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. N De Minimis Rate Used: N Rate Explanation: Tradewinds, Inc. does not allocate indirect costs and, therefore, has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Tradewinds, Inc. under programs of the federal government for the year ended June 30, 2023. 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 Tradewinds, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Tradewinds, Inc.
Title: Summary of significant accounting Policies 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. N De Minimis Rate Used: N Rate Explanation: Tradewinds, Inc. does not allocate indirect costs and, therefore, has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.
Title: Indirect Cost Rate 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. N De Minimis Rate Used: N Rate Explanation: Tradewinds, Inc. does not allocate indirect costs and, therefore, has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Tradewinds, Inc. does not allocate indirect costs and, therefore, has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Capital Advance 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. N De Minimis Rate Used: N Rate Explanation: Tradewinds, Inc. does not allocate indirect costs and, therefore, has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Tradewinds, Inc. has a capital advance agreement with HUD in the amount of $1,341,000 for funding the project to construct housing for developmentally disabled adults. The advance shall bear no interest and is repayable only if the property does not remain available for low-income eligible individuals as approved by HUD, for no less than 40 years following substantial completion as defined by HUD.
Title: Additional Audits 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. N De Minimis Rate Used: N Rate Explanation: Tradewinds, Inc. does not allocate indirect costs and, therefore, has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. HUD reserves the right to conduct additional audits of the Project’s grant program for economy and efficiency and program results that may result in disallowed costs to the Project. However, management does not believe such audits would result in any disallowed costs that would be material to the Project’s financial position at June 30, 2023.

Finding Details

Failure to Submit the annual Financial Statements by the Due Date Condition: The financial reporting was not submitted electronically into the Financial Assessment Subsystem (FASS) within 90 days after year-end.Criteria: Timely filing of the annual financial statements electronically through FASS is required by the U. S. Department of Housing and Urban Development pursuant to 24 C.F.R., Part 5, Subpart H.Cause: The fiscal team experienced staffing shortages due to turnover and extended leave of the accountant responsible for preparation of the financial statements.Effect: The financial statements for the year ended June 30, 2023 were not finalized until approximately three months after year-end. There was not enough time for an audit to be completed and financial reporting to be submitted within 90 days after year-end.Identification of a repeat finding: This is a repeat finding from the previous audit, 2022-001.Recommendation: We recommend developing strategies to help with staffing issues such as offering incentives to attract candidates and making the most of the current workforce.Management’s Response/Corrective Action Plan: Management agrees. See Corrective Action Plan.
Failure to Submit the annual Financial Statements by the Due Date Condition: The financial reporting was not submitted electronically into the Financial Assessment Subsystem (FASS) within 90 days after year-end.Criteria: Timely filing of the annual financial statements electronically through FASS is required by the U. S. Department of Housing and Urban Development pursuant to 24 C.F.R., Part 5, Subpart H.Cause: The fiscal team experienced staffing shortages due to turnover and extended leave of the accountant responsible for preparation of the financial statements.Effect: The financial statements for the year ended June 30, 2023 were not finalized until approximately three months after year-end. There was not enough time for an audit to be completed and financial reporting to be submitted within 90 days after year-end.Identification of a repeat finding: This is a repeat finding from the previous audit, 2022-001.Recommendation: We recommend developing strategies to help with staffing issues such as offering incentives to attract candidates and making the most of the current workforce.Management’s Response/Corrective Action Plan: Management agrees. See Corrective Action Plan.