Audit 32344

FY End
2022-12-31
Total Expended
$2.38M
Findings
2
Programs
1
Year: 2022 Accepted: 2023-04-26
Auditor: Forvis LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
33615 2022-001 - - N
610057 2022-001 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $161,519 Yes 0

Contacts

Name Title Type
JZFEK14HE3F3 Larry Dickenson Auditee
5403548022 Leslie Bates 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 arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. Spotsylvania United Methodist Housing Corporation haselected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.The amount reported for the capital advance program was the beginning of the year balance, the balance at theend of the year did not change. 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 includes the federal award activity of Spotsylvania United Methodist Housing Corporation, HUD Project No. 051-EE023, 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) and/or OMB Circular A-122, Cost Principles for Non-Profit Organizations, as applicable. Because the Schedule presents only a selected portion of the operations of Spotsylvania United Methodist Housing Corporation, it is not intended to and does not present the financial position, change in net assets, or cash flows of Spotsylvania United Methodist Housing Corporation.
Title: Subrecipient Payments Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. Spotsylvania United Methodist Housing Corporation haselected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.The amount reported for the capital advance program was the beginning of the year balance, the balance at theend of the year did not change. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. None of the expenditures reported on the Schedule were passed through to subrecipients.

Finding Details

Criteria: The Organization is obligated to deposit any surplus cash available at yearend into the residual receipts account within 60 days of the fiscal year-end (March 2nd). Condition: The Organization failed to deposit surplus cash for the fiscal year ended December 31, 2021 within 60 days of year-end. Effect: The Organization is noncompliant with the requirements of the Section 202 Supportive Housing for the Elderly program. Cause: The Organization used the surplus cash calculation included in the audited financial statements to determine the amount that needed to be deposited into the residual receipts account. The financial statements were issued 90 days after the fiscal year ended December 31, 2021. Repeat finding: This is not a repeat finding. Context: The deposit deadline for the fiscal year ended December 31, 2021 was March 2, 2022. The deposit was made on December 22, 2022. Recommendation: We recommend completing a surplus cash calculation as part of the year-end financial statement close process so that there is time to make the required surplus cash deposit within 60 days of fiscal year-end. Management response: Management agrees with this finding. See Corrective Action Plan.
Criteria: The Organization is obligated to deposit any surplus cash available at yearend into the residual receipts account within 60 days of the fiscal year-end (March 2nd). Condition: The Organization failed to deposit surplus cash for the fiscal year ended December 31, 2021 within 60 days of year-end. Effect: The Organization is noncompliant with the requirements of the Section 202 Supportive Housing for the Elderly program. Cause: The Organization used the surplus cash calculation included in the audited financial statements to determine the amount that needed to be deposited into the residual receipts account. The financial statements were issued 90 days after the fiscal year ended December 31, 2021. Repeat finding: This is not a repeat finding. Context: The deposit deadline for the fiscal year ended December 31, 2021 was March 2, 2022. The deposit was made on December 22, 2022. Recommendation: We recommend completing a surplus cash calculation as part of the year-end financial statement close process so that there is time to make the required surplus cash deposit within 60 days of fiscal year-end. Management response: Management agrees with this finding. See Corrective Action Plan.