Audit 34290

FY End

2022-09-30

Total Expended

$1.76M

Findings

2

Programs

2

Organization: Benedictine Manor I No. 082-Ee175 (AR)

Year: 2022 Accepted: 2022-12-22

Auditor: Forvis

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
37870	2022-001	-	-	N
614312	2022-001	-	-	N

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$1.72M	Yes	1
14.195	Section 8 Housing Assistance Payments Program	$46,769	-	0

Contacts

Name	Title	Type
Z25PAWVRL1A9	Marva Murphy	Auditee
8702074953	Corey Jennings	Auditor
No contacts on file

Notes to SEFA

Title: SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) Accounting Policies: 1. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Project under programs of the federal government for the year ended September 30, 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 the Project, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Project. 2. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB A-122 or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Project has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. 3. The Project did not have a balance outstanding due to any federal loan programs included in the Project's basic financial statements at September 30, 2022. The Project's mortgage note with HUD through the Supportive Housing for the Elderly program was recorded as a contribution from HUD due to the terms described in the notes to the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Project did not have a balance outstanding due to any federal loan programs included in the Projects basic financial statements at September 30, 2022. The Projects mortgage note with HUD through the Supportive Housing for the Elderly program was recorded as a contribution from HUD due to terms described in the notes to the financial statements. Balances outstanding at the end of the audit period were 1717400.

Finding Details

Finding 2022-001

Supportive Housing for the Elderly ALN No. 14.157 U.S. Department of Housing and Urban Development (HUD) Project No. 082-EE176 Program Year 2022 Criteria or Specific Requirement ? Special Tests and Provisions: Residual Receipts Account (24 CFR 891.400(e)) Condition ? The required annual deposit to the residual receipts account was not made within 60 days following year-end. Questioned Costs ? None Context ? The Project is required to calculate surplus cash at the end of each fiscal year, and any amount greater than zero is required to be deposited to a federally insured residual receipts account within 60 days of year-end. The Project properly calculated surplus cash; however, funds were not deposited into a residual receipts account within the required time frame. Effect ? The Project did not comply with the residual receipts compliance requirement. Cause ? The Project was in the process of changing responsible parties for depositing surplus cash. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? Management should create policies and procedures for future instances of surplus cash that will ensure compliance with this requirement. View of Responsible Officials and Planned Corrective Actions ? Surplus cash is calculated on a monthly basis. All residual receipts are required to be deposited in a separate federally insured account within 60 days of the fiscal year-end. The Project deposited cash surplus into a residual receipts account for fiscal year-end September 30, 2022; however, the funds were not deposited until after the 60-day deadline. Management will create policies and procedures for future instances of surplus cash that will ensure compliance with this requirement. Responsible party is now Katie Jenkins, Senior Accountant.

Finding 2022-001

Supportive Housing for the Elderly ALN No. 14.157 U.S. Department of Housing and Urban Development (HUD) Project No. 082-EE176 Program Year 2022 Criteria or Specific Requirement ? Special Tests and Provisions: Residual Receipts Account (24 CFR 891.400(e)) Condition ? The required annual deposit to the residual receipts account was not made within 60 days following year-end. Questioned Costs ? None Context ? The Project is required to calculate surplus cash at the end of each fiscal year, and any amount greater than zero is required to be deposited to a federally insured residual receipts account within 60 days of year-end. The Project properly calculated surplus cash; however, funds were not deposited into a residual receipts account within the required time frame. Effect ? The Project did not comply with the residual receipts compliance requirement. Cause ? The Project was in the process of changing responsible parties for depositing surplus cash. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? Management should create policies and procedures for future instances of surplus cash that will ensure compliance with this requirement. View of Responsible Officials and Planned Corrective Actions ? Surplus cash is calculated on a monthly basis. All residual receipts are required to be deposited in a separate federally insured account within 60 days of the fiscal year-end. The Project deposited cash surplus into a residual receipts account for fiscal year-end September 30, 2022; however, the funds were not deposited until after the 60-day deadline. Management will create policies and procedures for future instances of surplus cash that will ensure compliance with this requirement. Responsible party is now Katie Jenkins, Senior Accountant.