FAC Explorer

Audit 347580

FY End
2024-12-31
Total Expended
$1.62M
Findings
2
Programs
2
Organization: Princeville Development Corporation (NC)
Year: 2024 Accepted: 2025-03-24
Auditor: Bernard Robinson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
529680 2024-001 - Yes N
1106122 2024-001 - Yes N

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $1.37M Yes 1
10.427 Rural Rental Assistance Payments $250,015 - 0

Contacts

Name Title Type
M9AYS5VBP817 Neil McLamb Auditee
9107666283 Jamie Parsons 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. Princeville Development Corporation 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: Princeville Development Corporation 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 (the "Schedule") includes the federal award activity of Princeville Development Corporation, under programs of the federal government for the year ended December 31, 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 Princeville Development Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Princeville Development Corporation.
Title: LOAN 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. Princeville Development Corporation 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: Princeville Development Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Princeville Development Corporation had the following loan balances outstanding as of December 31, 2024: Program Title: Rural Rental Housing Loans; Assistance Listing Number: 10.415; Amount Outstanding: $1,334,327.70.

Finding Details

Finding 2024-001
Finding 2024-001: U.S. Department of Agriculture, Rural Development, Rural Rental Housing Loans, Assistance Listing #10.415 Statement of Condition: During the year ended December 31, 2024, the Corporation had $116,704.83 of funds maintained in an institution that were in excess of FDIC insured limits. Criteria: USDA Handbook 2-3560, Chapter 4, states that bank account funds maintained in an institution may not exceed the limit established for federal deposit insurance. If funds exceed the amount covered by federal deposit insurance, the Corporation must obtain a collateral pledge from the institution to cover all funds or move funds to an institution that will insure the funds. Effect: Noncompliance with USDA RD requirements and risk of loss of the Corporation's funds. Cause: Management and the Board of Directors do not believe the funds are at risk of loss at this time. Context: A test to verify that bank account funds maintained in an intuition were covered by federal deposit insurance was performed. At December 31, 2024, bank account funds in excess of the federally insured limits were $116,704.83. Recommendation: The Board of Directors and management should obtain a collateral agreement or transfer funds to another federally insured banking institution in an amount sufficient to ensure all funds are federally insured. Questioned Costs: $0 Views of Responsible Officials and Corrective Action Plan: Management and the Board of Directors agree with the above finding and review the financial stability of the banking institutions that hold the Corporation's funds on an ongoing basis and will continue to do so. Management and the Board of Directors do not feel at this time that the funds are truly at risk based on current market conditions and the reviews they continually do on the financial stability of the banking institutions holding these funds. Management and the Board of Directors will transfer the funds at any point they believe the funds are truly at risk.
Finding 2024-001
Finding 2024-001: U.S. Department of Agriculture, Rural Development, Rural Rental Housing Loans, Assistance Listing #10.415 Statement of Condition: During the year ended December 31, 2024, the Corporation had $116,704.83 of funds maintained in an institution that were in excess of FDIC insured limits. Criteria: USDA Handbook 2-3560, Chapter 4, states that bank account funds maintained in an institution may not exceed the limit established for federal deposit insurance. If funds exceed the amount covered by federal deposit insurance, the Corporation must obtain a collateral pledge from the institution to cover all funds or move funds to an institution that will insure the funds. Effect: Noncompliance with USDA RD requirements and risk of loss of the Corporation's funds. Cause: Management and the Board of Directors do not believe the funds are at risk of loss at this time. Context: A test to verify that bank account funds maintained in an intuition were covered by federal deposit insurance was performed. At December 31, 2024, bank account funds in excess of the federally insured limits were $116,704.83. Recommendation: The Board of Directors and management should obtain a collateral agreement or transfer funds to another federally insured banking institution in an amount sufficient to ensure all funds are federally insured. Questioned Costs: $0 Views of Responsible Officials and Corrective Action Plan: Management and the Board of Directors agree with the above finding and review the financial stability of the banking institutions that hold the Corporation's funds on an ongoing basis and will continue to do so. Management and the Board of Directors do not feel at this time that the funds are truly at risk based on current market conditions and the reviews they continually do on the financial stability of the banking institutions holding these funds. Management and the Board of Directors will transfer the funds at any point they believe the funds are truly at risk.