FAC Explorer

Audit 316554

FY End
2023-12-31
Total Expended
$22.68M
Findings
2
Programs
1
Organization: Bethany Manor, Inc. and Affiliates Dba: Bethany Life (IA)
Year: 2023 Accepted: 2024-08-02
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
480326 2023-005 Significant Deficiency - N
1056768 2023-005 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $22.68M Yes 1

Contacts

Name Title Type
D6GHSDNG8F75 Heather Uthoff Auditee
5157334325 Ashley Mahoney Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards 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. Bethany Manor, Inc. and affiliates dba: Bethany Life has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Bethany Life has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Bethany Manor, Inc. and affiliates dba: Bethany Life and is presented on the accrual basis of accounting. 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 of expenditures of federal awards presents only a selected portion of the operations of Bethany Manor, Inc. and affiliates dba: Bethany Life, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Bethany Manor, Inc. and affiliates dba: Bethany Life.
Title: U.S. DEPARTMENT OF AGRICULTURE COMMUNITY FACILITIES LOANS AND GRANTS Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards 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. Bethany Manor, Inc. and affiliates dba: Bethany Life has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Bethany Life has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Bethany Manor, Inc. and affiliates dba: Bethany Life has received guaranteed loans from U.S. Department of Agriculture. The loans are in repayment status and the outstanding balance of the loans at the beginning of the year is included in the federal expenditures presented in this schedule. The Organization received no additional loans during the year. The balance of the loans outstanding at December 31, 2023 consists of: Program Name Community Facilities Loans and Grants Assistance Listing Number 10.766 Federal Expenditures $22,238,029.

Finding Details

Finding 2023-005
Federal Agency: USDA Rural Development Federal Program Name: Community Facilities Loan Assistance Listing Number: 10.766 Award Period: 1/1/2023 – 12/31/2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Management is responsible for designing and maintaining a system of internal controls to achieve compliance with provisions of federal awards. Condition: CLA noted in discussion with management that required monthly reserve account allocations were not set aside for the months October through December 2023 as required per the Loan Closing Terms dated July 25, 2016. Questioned Costs: $23,220 Context: Per the Loan Closing Terms dated July 25, 2016, the organization is required to set aside $7,740 monthly in a Reserve Account until there is an accumulated amount of $928,800, after which deposits may be suspended. Whenever disbursements are made from the Reserve Account (subject to Governmental approval), monthly deposits resume again until threshold is reached again. Cause: CLA noted in discussion with management that the monthly reserve payments were not made in October through December 2023 after the Organization transitioned their AP system which had historically printed a monthly statement and distributed payment to the Reserve account via AP check. Due to the change in AP systems and process, these allocations were not set aside and not identified until subsequent to year-end. Effect: Monthly reserve allocations were not made in October through December 2023. Recommendation: We recommend management implement process of transfer and review for reserve fund payments to ensure adequacy of reserve account balance per loan agreement. Views of responsible officials: There is no disagreement with the audit finding. Corrective action plan: As of May 2024, management is reviewing with their banks to set up ACH for future transfers. The balance as of December 31, 2023 was $671,066 and deposits will continue until reaching the required amount of $928,800.
Finding 2023-005
Federal Agency: USDA Rural Development Federal Program Name: Community Facilities Loan Assistance Listing Number: 10.766 Award Period: 1/1/2023 – 12/31/2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Management is responsible for designing and maintaining a system of internal controls to achieve compliance with provisions of federal awards. Condition: CLA noted in discussion with management that required monthly reserve account allocations were not set aside for the months October through December 2023 as required per the Loan Closing Terms dated July 25, 2016. Questioned Costs: $23,220 Context: Per the Loan Closing Terms dated July 25, 2016, the organization is required to set aside $7,740 monthly in a Reserve Account until there is an accumulated amount of $928,800, after which deposits may be suspended. Whenever disbursements are made from the Reserve Account (subject to Governmental approval), monthly deposits resume again until threshold is reached again. Cause: CLA noted in discussion with management that the monthly reserve payments were not made in October through December 2023 after the Organization transitioned their AP system which had historically printed a monthly statement and distributed payment to the Reserve account via AP check. Due to the change in AP systems and process, these allocations were not set aside and not identified until subsequent to year-end. Effect: Monthly reserve allocations were not made in October through December 2023. Recommendation: We recommend management implement process of transfer and review for reserve fund payments to ensure adequacy of reserve account balance per loan agreement. Views of responsible officials: There is no disagreement with the audit finding. Corrective action plan: As of May 2024, management is reviewing with their banks to set up ACH for future transfers. The balance as of December 31, 2023 was $671,066 and deposits will continue until reaching the required amount of $928,800.