FAC Explorer

Audit 322971

FY End
2023-12-31
Total Expended
$2.63M
Findings
4
Programs
1
Organization: Vernon Advent Christian Home, Inc. (VT)
Year: 2023 Accepted: 2024-09-30
Auditor: Berry Dunn McNeil & Parker LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
500119 2023-007 Material Weakness - I
500120 2023-008 Material Weakness - I
1076561 2023-007 Material Weakness - I
1076562 2023-008 Material Weakness - I

Programs

ALN Program Spent Major Findings
66.458 Clean Water State Revolving Fund $2.63M Yes 2

Contacts

Name Title Type
KASHJXBHDQH8 M. Bradford Ellis Auditee
8022546041 Lisa Trundy-Whitten 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Vernon Homes does not participate in government grants or contracts that provide for specific indirect cost-recovery rates. Vernon Homes has not used 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 grant activity of Vernon Advent Christian Home, Inc. (a non-profit organization) (Vernon Homes) under programs of the federal government for the year ended December 31, 2023. The information in the 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 Vernon Homes, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Vernon Homes.
Title: Loan Program 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: Vernon Homes does not participate in government grants or contracts that provide for specific indirect cost-recovery rates. Vernon Homes has not used the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The federal environmental protection agency loan listed below is administered directly by Vernon Homes, and balances and transactions relating to this program is included in Vernon Homes’ financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of the loans outstanding at December 31, 2023, consists of: AL Number: 64.458; Program Name: Clean Water State Revolving Fund; Outstanding Balance: $2,631,553.

Finding Details

Finding 2023-007
Programs Affected: AL 66.458 – Clean Water State Revolving Fund – Award Year 2022/2023 Criteria: 2 CFR 200 Subpart D Section 200.317-326 “Procurement Standards” details the requirement for a non-Federal entity to have a documented procurement policy, and the standards for such a policy. Condition: Vernon Homes made attempts to obtain bids for the federally funded project, however, procurement policy testing was not able to be completed as the client does not have a formal procurement policy. Cause: Vernon Homes' does not have a documented procurement policy. Questioned Costs: None. Effect: Without a formal policy addressing the process of procurement, there is risk for non-prudent use of federal funds. Recommendation: BerryDunn recommends implementing a formal procurement policy as required and outlined in the 2 CFR 200 Subpart D Section 200.317. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See attached Corrective Action Plan.
Finding 2023-008
Programs Affected: AL 66.458 – Clean Water State Revolving Fund – Award Year 2022/2023   Criteria: 2 CFR 180.300 details the requirement when, “entering a covered transaction with another person at the next lower tier, they must verify that the person with whom they intend to do business is not excluded or disqualified. This is done by (a) checking SAM exclusions; or (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person.” Condition: BerryDunn was unable to test for compliance with the requirements of 2 CFR 180.300 for verifying a vendor is not excluded or disqualified from doing business with an entity that receives federal funds, as there was no auditable evidence of the contractors being verified for exclusion through suspension or debarment. Cause: Vernon Homes currently lacks a formal policy to review vendors against the SAM exclusion list, collecting a formal certification from the vendor or adding a clause to the covered transaction with the vendor. Questioned Costs: None. Effect: Without a formal policy addressing the process of suspension and debarment check, there is risk of working with a suspended or debarred entity resulting in non-prudent use of federal funds. Recommendation: BerryDunn implementing a formal process when entering arrangements with external parties to check they are not suspended or debarred on the SAM Exclusions list. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See attached Corrective Action Plan.
Finding 2023-007
Programs Affected: AL 66.458 – Clean Water State Revolving Fund – Award Year 2022/2023 Criteria: 2 CFR 200 Subpart D Section 200.317-326 “Procurement Standards” details the requirement for a non-Federal entity to have a documented procurement policy, and the standards for such a policy. Condition: Vernon Homes made attempts to obtain bids for the federally funded project, however, procurement policy testing was not able to be completed as the client does not have a formal procurement policy. Cause: Vernon Homes' does not have a documented procurement policy. Questioned Costs: None. Effect: Without a formal policy addressing the process of procurement, there is risk for non-prudent use of federal funds. Recommendation: BerryDunn recommends implementing a formal procurement policy as required and outlined in the 2 CFR 200 Subpart D Section 200.317. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See attached Corrective Action Plan.
Finding 2023-008
Programs Affected: AL 66.458 – Clean Water State Revolving Fund – Award Year 2022/2023   Criteria: 2 CFR 180.300 details the requirement when, “entering a covered transaction with another person at the next lower tier, they must verify that the person with whom they intend to do business is not excluded or disqualified. This is done by (a) checking SAM exclusions; or (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person.” Condition: BerryDunn was unable to test for compliance with the requirements of 2 CFR 180.300 for verifying a vendor is not excluded or disqualified from doing business with an entity that receives federal funds, as there was no auditable evidence of the contractors being verified for exclusion through suspension or debarment. Cause: Vernon Homes currently lacks a formal policy to review vendors against the SAM exclusion list, collecting a formal certification from the vendor or adding a clause to the covered transaction with the vendor. Questioned Costs: None. Effect: Without a formal policy addressing the process of suspension and debarment check, there is risk of working with a suspended or debarred entity resulting in non-prudent use of federal funds. Recommendation: BerryDunn implementing a formal process when entering arrangements with external parties to check they are not suspended or debarred on the SAM Exclusions list. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See attached Corrective Action Plan.