FAC Explorer

Audit 326365

FY End
2024-06-30
Total Expended
$1.26M
Findings
8
Programs
1
Organization: Spring Valley Housing, Inc. (TN)
Year: 2024 Accepted: 2024-10-29
Auditor: Tarwater & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504002 2024-001 - - C
504003 2024-001 - - C
504004 2024-002 - - C
504005 2024-002 - - C
1080444 2024-001 - - C
1080445 2024-001 - - C
1080446 2024-002 - - C
1080447 2024-002 - - C

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $84,212 Yes 2

Contacts

Name Title Type
L1SVBJQE27M8 Debbie Neely Auditee
9317965427 Joe Tarwater Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: SUMMARY OF SIGNIFICANT 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 OMB’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Spring Valley Housing, Inc. 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: SUMMARY OF SIGNIFICANT 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 OMB’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Spring Valley Housing, Inc. 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 Spring Valley Housing, Inc., HUD Project No. 086-HD029, under programs of the federal government for the year ended June 30, 2024. 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 Clyde Rooker Senior Village, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Spring Valley Housing, Inc.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: SUMMARY OF SIGNIFICANT 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 OMB’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Spring Valley Housing, Inc. 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: SUMMARY OF SIGNIFICANT 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 OMB’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Spring Valley Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. SUMMARY OF SIGNIFICANT 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 OMB’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Spring Valley Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
FINDINGS – FINANCIAL STATEMENTS AUDIT S2700-005 Finding Reference Number 2024-01 S2700-006 Finding Status Ongoing S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project is required to fund a residual receipts account, and any withdrawals must be approved by HUD. S2700-010 Statement of Condition The Project withdrew $579 from the residual receipts account and deposited the funds into the reserve for replacement account without HUD approval. S2700-020 Criteria Project is required to have HUD approval for any withdrawals from the residual receipts account. S2700-030 Effect The residual receipts account was not funded as required by HUD. S2700-040 Cause The Project withdrew funds from the residual receipts account without HUD approval. S2700-050 Recommendation The Project should deposit $579 into the residual receipts account. Management should ensure controls are in place to make required yearly residual receipts deposits based on surplus cash calculations. Management should also ensure controls are in place to avoid making unauthorized withdrawals from this account. S2700-055 Auditor Non-Compliance Code C - Unauthorized withdrawals from residual receipts account S2700-065 Amount of Questioned Costs $579 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date October 3, 2024 S2700-090 Actions Taken or Planned on the Finding Management has implemented controls to prevent withdrawals from the account without HUD approval.
Finding 2024-001
FINDINGS – FINANCIAL STATEMENTS AUDIT S2700-005 Finding Reference Number 2024-01 S2700-006 Finding Status Ongoing S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project is required to fund a residual receipts account, and any withdrawals must be approved by HUD. S2700-010 Statement of Condition The Project withdrew $579 from the residual receipts account and deposited the funds into the reserve for replacement account without HUD approval. S2700-020 Criteria Project is required to have HUD approval for any withdrawals from the residual receipts account. S2700-030 Effect The residual receipts account was not funded as required by HUD. S2700-040 Cause The Project withdrew funds from the residual receipts account without HUD approval. S2700-050 Recommendation The Project should deposit $579 into the residual receipts account. Management should ensure controls are in place to make required yearly residual receipts deposits based on surplus cash calculations. Management should also ensure controls are in place to avoid making unauthorized withdrawals from this account. S2700-055 Auditor Non-Compliance Code C - Unauthorized withdrawals from residual receipts account S2700-065 Amount of Questioned Costs $579 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date October 3, 2024 S2700-090 Actions Taken or Planned on the Finding Management has implemented controls to prevent withdrawals from the account without HUD approval.
Finding 2024-002
S2700-005 Finding Reference Number 2024-02 S2700-006 Finding Status Ongoing S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project was required to fund the Replacement Reserve with deposits totaling $350 per month. S2700-010 Statement of Condition The project failed to make monthly deposits into the Replacement Reserve account. S2700-020 Criteria Project is required to comply with the Replacement Reserve deposit dequirements from HUD. S2700-030 Effect Replacement Reserve was underfunded. S2700-040 Cause Controls were not in place to maintain compliance with Replacement Reserve funding requirements. S2700-050 Recommendation Implement procedures to prevent the Replacement Reserve from being underfunded. Make a deposit for underfunded Replacement Reserve deposits and to correct the amount deposited monthly for future deposits. S2700-055 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S2700-065 Amount of Questioned Costs $2,450 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date Ongoing S2700-090 Actions Taken or Planned on the Finding Management agrees with the finding and will implement controls to prevent the Replacement Reserve from being underfunded in the future.
Finding 2024-002
S2700-005 Finding Reference Number 2024-02 S2700-006 Finding Status Ongoing S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project was required to fund the Replacement Reserve with deposits totaling $350 per month. S2700-010 Statement of Condition The project failed to make monthly deposits into the Replacement Reserve account. S2700-020 Criteria Project is required to comply with the Replacement Reserve deposit dequirements from HUD. S2700-030 Effect Replacement Reserve was underfunded. S2700-040 Cause Controls were not in place to maintain compliance with Replacement Reserve funding requirements. S2700-050 Recommendation Implement procedures to prevent the Replacement Reserve from being underfunded. Make a deposit for underfunded Replacement Reserve deposits and to correct the amount deposited monthly for future deposits. S2700-055 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S2700-065 Amount of Questioned Costs $2,450 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date Ongoing S2700-090 Actions Taken or Planned on the Finding Management agrees with the finding and will implement controls to prevent the Replacement Reserve from being underfunded in the future.
Finding 2024-001
FINDINGS – FINANCIAL STATEMENTS AUDIT S2700-005 Finding Reference Number 2024-01 S2700-006 Finding Status Ongoing S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project is required to fund a residual receipts account, and any withdrawals must be approved by HUD. S2700-010 Statement of Condition The Project withdrew $579 from the residual receipts account and deposited the funds into the reserve for replacement account without HUD approval. S2700-020 Criteria Project is required to have HUD approval for any withdrawals from the residual receipts account. S2700-030 Effect The residual receipts account was not funded as required by HUD. S2700-040 Cause The Project withdrew funds from the residual receipts account without HUD approval. S2700-050 Recommendation The Project should deposit $579 into the residual receipts account. Management should ensure controls are in place to make required yearly residual receipts deposits based on surplus cash calculations. Management should also ensure controls are in place to avoid making unauthorized withdrawals from this account. S2700-055 Auditor Non-Compliance Code C - Unauthorized withdrawals from residual receipts account S2700-065 Amount of Questioned Costs $579 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date October 3, 2024 S2700-090 Actions Taken or Planned on the Finding Management has implemented controls to prevent withdrawals from the account without HUD approval.
Finding 2024-001
FINDINGS – FINANCIAL STATEMENTS AUDIT S2700-005 Finding Reference Number 2024-01 S2700-006 Finding Status Ongoing S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project is required to fund a residual receipts account, and any withdrawals must be approved by HUD. S2700-010 Statement of Condition The Project withdrew $579 from the residual receipts account and deposited the funds into the reserve for replacement account without HUD approval. S2700-020 Criteria Project is required to have HUD approval for any withdrawals from the residual receipts account. S2700-030 Effect The residual receipts account was not funded as required by HUD. S2700-040 Cause The Project withdrew funds from the residual receipts account without HUD approval. S2700-050 Recommendation The Project should deposit $579 into the residual receipts account. Management should ensure controls are in place to make required yearly residual receipts deposits based on surplus cash calculations. Management should also ensure controls are in place to avoid making unauthorized withdrawals from this account. S2700-055 Auditor Non-Compliance Code C - Unauthorized withdrawals from residual receipts account S2700-065 Amount of Questioned Costs $579 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date October 3, 2024 S2700-090 Actions Taken or Planned on the Finding Management has implemented controls to prevent withdrawals from the account without HUD approval.
Finding 2024-002
S2700-005 Finding Reference Number 2024-02 S2700-006 Finding Status Ongoing S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project was required to fund the Replacement Reserve with deposits totaling $350 per month. S2700-010 Statement of Condition The project failed to make monthly deposits into the Replacement Reserve account. S2700-020 Criteria Project is required to comply with the Replacement Reserve deposit dequirements from HUD. S2700-030 Effect Replacement Reserve was underfunded. S2700-040 Cause Controls were not in place to maintain compliance with Replacement Reserve funding requirements. S2700-050 Recommendation Implement procedures to prevent the Replacement Reserve from being underfunded. Make a deposit for underfunded Replacement Reserve deposits and to correct the amount deposited monthly for future deposits. S2700-055 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S2700-065 Amount of Questioned Costs $2,450 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date Ongoing S2700-090 Actions Taken or Planned on the Finding Management agrees with the finding and will implement controls to prevent the Replacement Reserve from being underfunded in the future.
Finding 2024-002
S2700-005 Finding Reference Number 2024-02 S2700-006 Finding Status Ongoing S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project was required to fund the Replacement Reserve with deposits totaling $350 per month. S2700-010 Statement of Condition The project failed to make monthly deposits into the Replacement Reserve account. S2700-020 Criteria Project is required to comply with the Replacement Reserve deposit dequirements from HUD. S2700-030 Effect Replacement Reserve was underfunded. S2700-040 Cause Controls were not in place to maintain compliance with Replacement Reserve funding requirements. S2700-050 Recommendation Implement procedures to prevent the Replacement Reserve from being underfunded. Make a deposit for underfunded Replacement Reserve deposits and to correct the amount deposited monthly for future deposits. S2700-055 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S2700-065 Amount of Questioned Costs $2,450 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date Ongoing S2700-090 Actions Taken or Planned on the Finding Management agrees with the finding and will implement controls to prevent the Replacement Reserve from being underfunded in the future.