Audit 346189

FY End
2024-06-30
Total Expended
$21.14M
Findings
2
Programs
5
Organization: Abilities, Inc. of Florida (FL)
Year: 2024 Accepted: 2025-03-14
Auditor: Rsm US LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
528132 2024-001 - - N
1104574 2024-001 - - N

Contacts

Name Title Type
N8CWB1KMNS37 Trudi Cooper Auditee
7035994451 Bo Brault 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. Pass-through entity identifying numbers are presented where available. No amounts have been provided to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: The Abilities Group has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because they report minimal indirect costs. Abilities, Inc. of Florida and Affiliates (the Abilities Group) consist of the following entities: Abilities, Inc. of Florida; Homes for Independence; HFI Space Coast; Abilities at Bartonʼs Landing, Inc.; Abilities at Briar Cliff, Inc.; Abilities at Casablanca, Inc.; Abilities at College Pines, Inc.; Abilities at Crestview I & II, Inc.; Abilities at Cumberland Towers, Inc.; Abilities at Eagleʼs Nest, Inc.; Abilities at English Park, Inc.; Abilities at Fountain Square, Inc.; Abilities at Morningside I & II, Inc.; Abilities at Parklane, Inc.; Abilities at San Juan I & II, Inc.; Abilities at Sierra Apartments, Inc.; Abilities at St. Andrewʼs Cove, Inc.; Abilities at Windjammer I & II, Inc.; Abilities at Windover, Inc. and Abilities at Woodside, Inc. The accompanying consolidated schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Abilities Group 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 the Abilities Group, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Abilities Group.
Title: Summary of Significant Accounting Policies 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. Pass-through entity identifying numbers are presented where available. No amounts have been provided to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: The Abilities Group has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because they report minimal indirect costs. 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. Pass-through entity identifying numbers are presented where available. No amounts have been provided to subrecipients during the year ended June 30, 2024.
Title: Indirect Cost Rate 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. Pass-through entity identifying numbers are presented where available. No amounts have been provided to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: The Abilities Group has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because they report minimal indirect costs. The Abilities Group has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Loans Outstanding 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. Pass-through entity identifying numbers are presented where available. No amounts have been provided to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: The Abilities Group has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because they report minimal indirect costs. The Abilities Group had the following capital advances and loans outstanding at June 30, 2024, which the federal government imposes continuing compliance requirements. The balances outstanding are also included in the federal expenditures presented in the Schedule, with the following titles and amounts for the year ended June 30, 2024. See the Notes to the SEFA for chart/table.
Title: Supportive Housing for Persons with Disabilities 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. Pass-through entity identifying numbers are presented where available. No amounts have been provided to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: The Abilities Group has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance because they report minimal indirect costs. Included in Supportive Housing for Persons With Disabilities is the cumulative amount of capital advances received from the U.S. Department of Housing and Urban Development (HUD). HUD requires the Abilities Group to comply with requirements identified in the regulatory agreements with the Abilities Group for 40 years under the Capital Advance program.

Finding Details

Other Matter Compliance Federal Award ID Not Available, 2024, Federal program: U.S. Department of Housing and Urban Development, ALN 14.181 Supportive Housing for Persons with Disabilities Criteria: Any surplus funds in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in a federally insured account within 60 days following the end of the fiscal year. Withdrawals from this account may be made only for project purposes and with the approval of HUD (24 CFR section 891.400(e). Condition: During our test work, we noted that each HUD location has a segregated residual receipts account for which the surplus cash at fiscal year-end is to be deposited. Three HUD locations had surplus cash amounts at June 30, 2024. However, management did not transfer the surplus cash into the applicable residual receipt accounts until greater than 60 days after year-end. Questioned Costs: None Context: At June 30, 2024, there were three HUD location identified as having surplus cash. The total amount of surplus cash for those locations was $16,243. The surplus cash was transferred to the segregated residual receipts accounts, however not within 60 days after year-end. Effect: Surplus cash as of June 30, 2024 remained in the project funds accounts for greater than 60 days after fiscal year-end. Cause: The project fund accounts for each HUD location are interest-bearing, therefore the requirement to transfer surplus cash into a segregated account within 60 days after year-end was overlooked. Recommendation: We recommend that management perform its surplus cash calculations in a timely manner and make any required transfers within 60 days after fiscal year-end. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See Corrective Action Plan.
Other Matter Compliance Federal Award ID Not Available, 2024, Federal program: U.S. Department of Housing and Urban Development, ALN 14.181 Supportive Housing for Persons with Disabilities Criteria: Any surplus funds in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in a federally insured account within 60 days following the end of the fiscal year. Withdrawals from this account may be made only for project purposes and with the approval of HUD (24 CFR section 891.400(e). Condition: During our test work, we noted that each HUD location has a segregated residual receipts account for which the surplus cash at fiscal year-end is to be deposited. Three HUD locations had surplus cash amounts at June 30, 2024. However, management did not transfer the surplus cash into the applicable residual receipt accounts until greater than 60 days after year-end. Questioned Costs: None Context: At June 30, 2024, there were three HUD location identified as having surplus cash. The total amount of surplus cash for those locations was $16,243. The surplus cash was transferred to the segregated residual receipts accounts, however not within 60 days after year-end. Effect: Surplus cash as of June 30, 2024 remained in the project funds accounts for greater than 60 days after fiscal year-end. Cause: The project fund accounts for each HUD location are interest-bearing, therefore the requirement to transfer surplus cash into a segregated account within 60 days after year-end was overlooked. Recommendation: We recommend that management perform its surplus cash calculations in a timely manner and make any required transfers within 60 days after fiscal year-end. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See Corrective Action Plan.