FAC Explorer

Audit 33850

FY End
2022-12-31
Total Expended
$2.41M
Findings
2
Programs
1
Organization: Little Pee Dee Manor, Inc. 054-Ee002-Wah-Ca/sc16s911002 (NC)
Year: 2022 Accepted: 2023-04-19
Auditor: Bernard Robinson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38060 2022-001 - Yes N
614502 2022-001 - Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.41M Yes 1

Contacts

Name Title Type
USLJAML5HE38 Sandy Lucas Auditee
3365442300 Anthony Wade Pack Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Little Pee Dee Manor, 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: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 2216700.
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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Little Pee Dee Manor, 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: 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 Little Pee Dee Manor, Inc., under programs of the federal government for the year ended December 31, 2022. 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 Little Pee Dee Manor, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Little Pee Dee Manor, Inc.

Finding Details

Finding 2022-001
Statement of Condition: At December 31, 2022, the Project had $51,466 of funds maintained in an institution that were in excess of FDIC insured limits. Criteria: The HUD Handbook 4370.2, Chapter 2, requires that the cash accounts of the Project be deposited in a bank or banks whose deposits are federally insured. Cause of Condition: Management did not transfer funds to separate financial institutions in a timely manner to provide for continuous FDIC insurance coverage. Effect of Condition: Noncompliance with HUD requirements and risk of loss of the Organizations' funds. Context: A test to compare the total funds held at each institution to the $250,000 federally insured limit. At December 31, 2022, the total funds held at one bank was $301,466 which was $51,466 in excess of the $250,000 federally insured limit. Recommendation: The Organization should continuously monitor cash balances to ensure that funds are always covered by FDIC insurance limits, collateral agreements are obtained, or funds are invested in government securities. Questioned Costs: N/A Information based on Universe and Population Size: The finding noted above was not a result of sampling. Sample Size Information: The finding noted above was not a result of sampling. Noncompliance Information: The finding noted above was not a result of sampling. View's of Responsible Officials and Corrective Action Plan: Management agrees with the above finding and is in the process of transferring funds to provide adequate FDIC insurance coverage for all funds. Management will re-evaluate its policies and procedures to determine any necessary changes.
Finding 2022-001
Statement of Condition: At December 31, 2022, the Project had $51,466 of funds maintained in an institution that were in excess of FDIC insured limits. Criteria: The HUD Handbook 4370.2, Chapter 2, requires that the cash accounts of the Project be deposited in a bank or banks whose deposits are federally insured. Cause of Condition: Management did not transfer funds to separate financial institutions in a timely manner to provide for continuous FDIC insurance coverage. Effect of Condition: Noncompliance with HUD requirements and risk of loss of the Organizations' funds. Context: A test to compare the total funds held at each institution to the $250,000 federally insured limit. At December 31, 2022, the total funds held at one bank was $301,466 which was $51,466 in excess of the $250,000 federally insured limit. Recommendation: The Organization should continuously monitor cash balances to ensure that funds are always covered by FDIC insurance limits, collateral agreements are obtained, or funds are invested in government securities. Questioned Costs: N/A Information based on Universe and Population Size: The finding noted above was not a result of sampling. Sample Size Information: The finding noted above was not a result of sampling. Noncompliance Information: The finding noted above was not a result of sampling. View's of Responsible Officials and Corrective Action Plan: Management agrees with the above finding and is in the process of transferring funds to provide adequate FDIC insurance coverage for all funds. Management will re-evaluate its policies and procedures to determine any necessary changes.