Audit 308887

FY End
2023-12-31
Total Expended
$2.67M
Findings
4
Programs
1
Year: 2023 Accepted: 2024-06-14
Auditor: Aprio LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
400860 2023-001 Material Weakness - N
400861 2023-001 Material Weakness - N
977302 2023-001 Material Weakness - N
977303 2023-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $251,354 Yes 1

Contacts

Name Title Type
QGMJD2GU4NE3 Jill Cromartie Auditee
7702562259 Melissa Dunn Auditor
No contacts on file

Notes to SEFA

Title: Basis 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 OMB Circular A-122, "Cost Principles for Non-Profit Organizations" or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimus indirect cost rate under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of The Development Corporation of Orchard Knob, Inc. under programs of the federal government for the year ended December 31, 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 The Development Corporation of Orchard Knob, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of The Development Corporation of Orchard Knob, 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 OMB Circular A-122, "Cost Principles for Non-Profit Organizations" or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimus indirect cost rate under 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 OMB Circular A-122, "Cost Principles for Non-Profit Organizations" or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are 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 OMB Circular A-122, "Cost Principles for Non-Profit Organizations" or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimus indirect cost rate under Uniform Guidance. The Development Corporation of Orchard Knob, Inc. has elected not to use the 10% de minimus indirect cost rate allowed under Uniform Guidance.
Title: Section 202 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 OMB Circular A-122, "Cost Principles for Non-Profit Organizations" or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimus indirect cost rate under Uniform Guidance. The Development Corporation of Orchard Knob, Inc. has received a capital advance under the Section 202 Capital Advance program. The capital advance outstanding as of December 31, 2023 is $2,418,699.

Finding Details

Finding Reference Number: 2023-01 Title and Federal Assistance Listing Number of Federal Program: 14.157 Section 202 Capital Advance and PRAC Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Information on Universe Population Size: Not Applicable Sample Size Information: Not Applicable Identification of Repeat Finding and Finding Reference Number: Not Applicable Criteria Fidelity bond policy should provide coverage totaling two months gross potential rent or $50,000, whichever is higher. Statement of Condition: During the year ended December 31, 2023, the Corporation's fidelity bond was less than the required amount of two months gross potential rent or $50,000, whichever is higher. Cause: Oversight by management. Effect or Potential Effect: The Project is noncompliant with the HUD regulatory agreement. Auditor Non-Compliance Code: Z - Other Questioned Costs: $- Reportable Views of Responsible Officials: Management is in agreement with the finding and has started the process to increase the policy coverage amount. Context: Not Applicable Recommendation: The Corporation should increase the policy to be in compliance with HUD regulations. Response Indicator: Agree Status Indicator: Not Cleared Response: Agree. -
Finding Reference Number: 2023-01 Title and Federal Assistance Listing Number of Federal Program: 14.157 Section 202 Capital Advance and PRAC Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Information on Universe Population Size: Not Applicable Sample Size Information: Not Applicable Identification of Repeat Finding and Finding Reference Number: Not Applicable Criteria Fidelity bond policy should provide coverage totaling two months gross potential rent or $50,000, whichever is higher. Statement of Condition: During the year ended December 31, 2023, the Corporation's fidelity bond was less than the required amount of two months gross potential rent or $50,000, whichever is higher. Cause: Oversight by management. Effect or Potential Effect: The Project is noncompliant with the HUD regulatory agreement. Auditor Non-Compliance Code: Z - Other Questioned Costs: $- Reportable Views of Responsible Officials: Management is in agreement with the finding and has started the process to increase the policy coverage amount. Context: Not Applicable Recommendation: The Corporation should increase the policy to be in compliance with HUD regulations. Response Indicator: Agree Status Indicator: Not Cleared Response: Agree. -
Finding Reference Number: 2023-01 Title and Federal Assistance Listing Number of Federal Program: 14.157 Section 202 Capital Advance and PRAC Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Information on Universe Population Size: Not Applicable Sample Size Information: Not Applicable Identification of Repeat Finding and Finding Reference Number: Not Applicable Criteria Fidelity bond policy should provide coverage totaling two months gross potential rent or $50,000, whichever is higher. Statement of Condition: During the year ended December 31, 2023, the Corporation's fidelity bond was less than the required amount of two months gross potential rent or $50,000, whichever is higher. Cause: Oversight by management. Effect or Potential Effect: The Project is noncompliant with the HUD regulatory agreement. Auditor Non-Compliance Code: Z - Other Questioned Costs: $- Reportable Views of Responsible Officials: Management is in agreement with the finding and has started the process to increase the policy coverage amount. Context: Not Applicable Recommendation: The Corporation should increase the policy to be in compliance with HUD regulations. Response Indicator: Agree Status Indicator: Not Cleared Response: Agree. -
Finding Reference Number: 2023-01 Title and Federal Assistance Listing Number of Federal Program: 14.157 Section 202 Capital Advance and PRAC Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Information on Universe Population Size: Not Applicable Sample Size Information: Not Applicable Identification of Repeat Finding and Finding Reference Number: Not Applicable Criteria Fidelity bond policy should provide coverage totaling two months gross potential rent or $50,000, whichever is higher. Statement of Condition: During the year ended December 31, 2023, the Corporation's fidelity bond was less than the required amount of two months gross potential rent or $50,000, whichever is higher. Cause: Oversight by management. Effect or Potential Effect: The Project is noncompliant with the HUD regulatory agreement. Auditor Non-Compliance Code: Z - Other Questioned Costs: $- Reportable Views of Responsible Officials: Management is in agreement with the finding and has started the process to increase the policy coverage amount. Context: Not Applicable Recommendation: The Corporation should increase the policy to be in compliance with HUD regulations. Response Indicator: Agree Status Indicator: Not Cleared Response: Agree. -