FAC Explorer

Audit 314896

FY End
2023-12-31
Total Expended
$5.29M
Findings
4
Programs
1
Organization: Providence Manor Development Corporation (GA)
Year: 2023 Accepted: 2024-07-11
Auditor: Aprio LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
478206 2023-001 Significant Deficiency - N
478207 2023-001 Significant Deficiency - N
1054648 2023-001 Significant Deficiency - N
1054649 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $362,092 Yes 1

Contacts

Name Title Type
NKZ4P157JK93 Denise Crowder Auditee
4048169770 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 recgonized 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, wherin 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 allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Providence Manor Development Corporation 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 Providence Manor Development Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of Providence Manor Development Corporation.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recgonized 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, wherin 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 allowed 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 recgonized 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, wherin 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 allowed under Uniform Guidance. Providence Manor Development Corporation 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 recgonized 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, wherin 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 allowed under Uniform Guidance. Providence Manor Development Corporation's has received a direct loan under the Section 202 Capital Advance program. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of the loans outstanding as of December 31, 2023 is $4,923,400.

Finding Details

Finding 2023-001
Finding Reference Number: 2023-01 Title and Number of Federal Program: Section 202 Capital Advance and PRAC, 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: n/a Criteria: Amounts paid to management company exceed amounts dictated in agreement and approved by HUD. Statement of Condition: Management fees were overpaid during the year ended December 31, 2023. Cause: Controls were not in place to ensure management fees were calculated and paid in accordance with the agreement. Effect or Potential Effect: The project is not in compliance with HUD requirements. Auditor Non-Compliance Code: J - Unauthorized management fees Questioned Costs: $13,483 Reportable Views of Responsible Officials: Management is in agreement with the finding and will ensure amounts are repaid and controls put into place to prevent future errors. Context: n/a Recommendation: We recommend that management implement policies and procedures necessary to ensure that management fees are paid in accordance with executed agreements and amounts approved by HUD. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Agree with management's assessment. Response Indicator: Agree Completion Date: 12/31/2024 Response: Policies and procedures will be reviewed to ensure that management fees are paid in accordance with executed agreements as required by HUD.
Finding 2023-001
Finding Reference Number: 2023-01 Title and Number of Federal Program: Section 202 Capital Advance and PRAC, 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: n/a Criteria: Amounts paid to management company exceed amounts dictated in agreement and approved by HUD. Statement of Condition: Management fees were overpaid during the year ended December 31, 2023. Cause: Controls were not in place to ensure management fees were calculated and paid in accordance with the agreement. Effect or Potential Effect: The project is not in compliance with HUD requirements. Auditor Non-Compliance Code: J - Unauthorized management fees Questioned Costs: $13,483 Reportable Views of Responsible Officials: Management is in agreement with the finding and will ensure amounts are repaid and controls put into place to prevent future errors. Context: n/a Recommendation: We recommend that management implement policies and procedures necessary to ensure that management fees are paid in accordance with executed agreements and amounts approved by HUD. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Agree with management's assessment. Response Indicator: Agree Completion Date: 12/31/2024 Response: Policies and procedures will be reviewed to ensure that management fees are paid in accordance with executed agreements as required by HUD.
Finding 2023-001
Finding Reference Number: 2023-01 Title and Number of Federal Program: Section 202 Capital Advance and PRAC, 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: n/a Criteria: Amounts paid to management company exceed amounts dictated in agreement and approved by HUD. Statement of Condition: Management fees were overpaid during the year ended December 31, 2023. Cause: Controls were not in place to ensure management fees were calculated and paid in accordance with the agreement. Effect or Potential Effect: The project is not in compliance with HUD requirements. Auditor Non-Compliance Code: J - Unauthorized management fees Questioned Costs: $13,483 Reportable Views of Responsible Officials: Management is in agreement with the finding and will ensure amounts are repaid and controls put into place to prevent future errors. Context: n/a Recommendation: We recommend that management implement policies and procedures necessary to ensure that management fees are paid in accordance with executed agreements and amounts approved by HUD. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Agree with management's assessment. Response Indicator: Agree Completion Date: 12/31/2024 Response: Policies and procedures will be reviewed to ensure that management fees are paid in accordance with executed agreements as required by HUD.
Finding 2023-001
Finding Reference Number: 2023-01 Title and Number of Federal Program: Section 202 Capital Advance and PRAC, 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: n/a Criteria: Amounts paid to management company exceed amounts dictated in agreement and approved by HUD. Statement of Condition: Management fees were overpaid during the year ended December 31, 2023. Cause: Controls were not in place to ensure management fees were calculated and paid in accordance with the agreement. Effect or Potential Effect: The project is not in compliance with HUD requirements. Auditor Non-Compliance Code: J - Unauthorized management fees Questioned Costs: $13,483 Reportable Views of Responsible Officials: Management is in agreement with the finding and will ensure amounts are repaid and controls put into place to prevent future errors. Context: n/a Recommendation: We recommend that management implement policies and procedures necessary to ensure that management fees are paid in accordance with executed agreements and amounts approved by HUD. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Agree with management's assessment. Response Indicator: Agree Completion Date: 12/31/2024 Response: Policies and procedures will be reviewed to ensure that management fees are paid in accordance with executed agreements as required by HUD.