Audit 315222

FY End
2023-06-30
Total Expended
$4.19M
Findings
8
Programs
9
Organization: Shelter House, Inc. (VA)
Year: 2023 Accepted: 2024-07-16
Auditor: Aprio LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
478594 2023-003 Material Weakness Yes P
478595 2023-004 Significant Deficiency - I
478596 2023-003 Material Weakness Yes P
478597 2023-004 Significant Deficiency - I
1055036 2023-003 Material Weakness Yes P
1055037 2023-004 Significant Deficiency - I
1055038 2023-003 Material Weakness Yes P
1055039 2023-004 Significant Deficiency - I

Contacts

Name Title Type
VWS3QKWLY377 Joe Meyer Auditee
7039557966 Greg Plotts Auditor
No contacts on file

Notes to SEFA

Title: 1. 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 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 auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Shelter House, Inc. and Subsidiary 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 Shelter House, Inc. and Subsidiary, it is not intended to and does not present the consolidated financial position, changes in net assets, functional expenses or cash flows of Shelter House, Inc. and Subsidiary.
Title: 2. 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 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 auditee did not use the de minimis cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: 3. 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 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 auditee did not use the de minimis cost rate. Shelter House, Inc. and Subsidiary has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: 4. Loan balances 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 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 auditee did not use the de minimis cost rate. Outstanding balances of government loans from federal sources at June 30, 2023 are as follows: Home Investment Partnership Program - Loan: $203,000
Title: 5. Reconciliation of schedule of expenditures of federal awards to revenue 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 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 auditee did not use the de minimis cost rate. The following is a reconciliation of the Schedule of Expenditures of Federal Awards to the total government agency revenue per the Consolidated Statements of Activities and Changes in Net Assets: Scheudle of Expenditure of Federal Awards : $4,193,416; State and County contacts and grants: 8,766,561; Less outstanding loan: (203,000); Total government agenciesL $12,756,977

Finding Details

Criteria: According to 2 CFR 200.512 the data collection and reporting package must be submitted within the earlier of 30 calendar days after the receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The data collection form for the 2023 Single Audit was not submitted within the required timeframe. Cause: The Single Audit was not completed in time to file the data collection form by the deadline due to delays in receiving the required audit support. Effect: The data collection form for the 2023 Single Audit was not submitted within the required timeframe and this data was not reported timely to the government. Repeat Finding: This is a repeat finding. Questioned Costs: There were no questioned costs related to this finding. Recommendation: We recommended that the Organization ensure that they are prepared and have adequate resources and staffing to complete the audit timely to guarantee that the data collection form and reporting package are filed within the required timeframe.
Program Name: Continuum of Care Assistance listing #: 14.218 Federal Awarding Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Procurement Criteria: According to 2 CFR 200.320(a)(2) price quotations must be obtained from an adequate number of qualified sources for the acquisition of property or services for which the aggregate dollar amount is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. Condition: The Organization did not follow their small purchase procedures used according to their procurement policy (for procurements between $10,000 and $250,000). Cause: Many expenses were split between multiple programs over the course of the program. While the expenditures were individually within the micro-purchase threshold, combined, the amounts exceeded this. Effect: The Organization did not adequately meet the requirements for their procurement policy to perform a cost/price analysis on their contractors. Repeat Finding: This is not a repeat finding. Questioned Costs: There were no questioned costs related to this finding. Recommendation: We recommend the Organization receive price quotations for all material purchases and recurring expenditures relevant to federal awards.
Criteria: According to 2 CFR 200.512 the data collection and reporting package must be submitted within the earlier of 30 calendar days after the receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The data collection form for the 2023 Single Audit was not submitted within the required timeframe. Cause: The Single Audit was not completed in time to file the data collection form by the deadline due to delays in receiving the required audit support. Effect: The data collection form for the 2023 Single Audit was not submitted within the required timeframe and this data was not reported timely to the government. Repeat Finding: This is a repeat finding. Questioned Costs: There were no questioned costs related to this finding. Recommendation: We recommended that the Organization ensure that they are prepared and have adequate resources and staffing to complete the audit timely to guarantee that the data collection form and reporting package are filed within the required timeframe.
Program Name: Continuum of Care Assistance listing #: 14.218 Federal Awarding Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Procurement Criteria: According to 2 CFR 200.320(a)(2) price quotations must be obtained from an adequate number of qualified sources for the acquisition of property or services for which the aggregate dollar amount is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. Condition: The Organization did not follow their small purchase procedures used according to their procurement policy (for procurements between $10,000 and $250,000). Cause: Many expenses were split between multiple programs over the course of the program. While the expenditures were individually within the micro-purchase threshold, combined, the amounts exceeded this. Effect: The Organization did not adequately meet the requirements for their procurement policy to perform a cost/price analysis on their contractors. Repeat Finding: This is not a repeat finding. Questioned Costs: There were no questioned costs related to this finding. Recommendation: We recommend the Organization receive price quotations for all material purchases and recurring expenditures relevant to federal awards.
Criteria: According to 2 CFR 200.512 the data collection and reporting package must be submitted within the earlier of 30 calendar days after the receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The data collection form for the 2023 Single Audit was not submitted within the required timeframe. Cause: The Single Audit was not completed in time to file the data collection form by the deadline due to delays in receiving the required audit support. Effect: The data collection form for the 2023 Single Audit was not submitted within the required timeframe and this data was not reported timely to the government. Repeat Finding: This is a repeat finding. Questioned Costs: There were no questioned costs related to this finding. Recommendation: We recommended that the Organization ensure that they are prepared and have adequate resources and staffing to complete the audit timely to guarantee that the data collection form and reporting package are filed within the required timeframe.
Program Name: Continuum of Care Assistance listing #: 14.218 Federal Awarding Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Procurement Criteria: According to 2 CFR 200.320(a)(2) price quotations must be obtained from an adequate number of qualified sources for the acquisition of property or services for which the aggregate dollar amount is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. Condition: The Organization did not follow their small purchase procedures used according to their procurement policy (for procurements between $10,000 and $250,000). Cause: Many expenses were split between multiple programs over the course of the program. While the expenditures were individually within the micro-purchase threshold, combined, the amounts exceeded this. Effect: The Organization did not adequately meet the requirements for their procurement policy to perform a cost/price analysis on their contractors. Repeat Finding: This is not a repeat finding. Questioned Costs: There were no questioned costs related to this finding. Recommendation: We recommend the Organization receive price quotations for all material purchases and recurring expenditures relevant to federal awards.
Criteria: According to 2 CFR 200.512 the data collection and reporting package must be submitted within the earlier of 30 calendar days after the receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The data collection form for the 2023 Single Audit was not submitted within the required timeframe. Cause: The Single Audit was not completed in time to file the data collection form by the deadline due to delays in receiving the required audit support. Effect: The data collection form for the 2023 Single Audit was not submitted within the required timeframe and this data was not reported timely to the government. Repeat Finding: This is a repeat finding. Questioned Costs: There were no questioned costs related to this finding. Recommendation: We recommended that the Organization ensure that they are prepared and have adequate resources and staffing to complete the audit timely to guarantee that the data collection form and reporting package are filed within the required timeframe.
Program Name: Continuum of Care Assistance listing #: 14.218 Federal Awarding Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Procurement Criteria: According to 2 CFR 200.320(a)(2) price quotations must be obtained from an adequate number of qualified sources for the acquisition of property or services for which the aggregate dollar amount is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. Condition: The Organization did not follow their small purchase procedures used according to their procurement policy (for procurements between $10,000 and $250,000). Cause: Many expenses were split between multiple programs over the course of the program. While the expenditures were individually within the micro-purchase threshold, combined, the amounts exceeded this. Effect: The Organization did not adequately meet the requirements for their procurement policy to perform a cost/price analysis on their contractors. Repeat Finding: This is not a repeat finding. Questioned Costs: There were no questioned costs related to this finding. Recommendation: We recommend the Organization receive price quotations for all material purchases and recurring expenditures relevant to federal awards.