Audit 347919

FY End
2024-06-30
Total Expended
$1.42M
Findings
2
Programs
3
Year: 2024 Accepted: 2025-03-25

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
529895 2024-001 Material Weakness Yes P
1106337 2024-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $801,512 Yes 1
14.239 Home Investment Partnerships Program $584,455 - 0
14.218 Community Development Block Grants/entitlement Grants $29,332 - 0

Contacts

Name Title Type
FGNSCUVGTCW5 Karen Mason Auditee
5403440747 David Booth 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 cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. However, the City of Roanoke does not use identifying numbers. Habitat for Humanity in the Roanoke Valley, Inc. has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Only direct costs are used. The schedule of expenditures of federal awards (the “Schedule”) includes the federal grant expenditures of Habitat for Humanity in the Roanoke Valley, Inc. 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 (“CFR”) 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 Habitat for Humanity in the Roanoke Valley, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Habitat for Humanity in the Roanoke Valley, Inc.
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 cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. However, the City of Roanoke does not use identifying numbers. Habitat for Humanity in the Roanoke Valley, Inc. has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Only direct costs are used. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. However, the City of Roanoke does not use identifying numbers. Habitat for Humanity in the Roanoke Valley, Inc. has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Assistance Listing Numbers Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. However, the City of Roanoke does not use identifying numbers. Habitat for Humanity in the Roanoke Valley, Inc. has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Only direct costs are used. The assistance listing numbers included in this report were determined based on the program name, review of grant contract information, and the Office of Management and Budget’s Assistance Listing numbers.
Title: Unexpended Federal Awards Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. However, the City of Roanoke does not use identifying numbers. Habitat for Humanity in the Roanoke Valley, Inc. has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Only direct costs are used. Habitat for Humanity in the Roanoke Valley, Inc. had unexpended federal awards of $2,798,502 at June 30, 2023 which were approved for carry over into the current fiscal year. Grant awards on houses in progress during the current fiscal year totaled $576,676. Unpent grant awards on completed houses during the fiscal year totaled $24,000. Habitat for Humanity in the Roanoke Valley, Inc. had unexpended awards of $1,935,879 at June 30, 2024 which are approved for carryover into the next fiscal year.

Finding Details

Internal control related matters related to store inventory tracking. The Habitat ReStore maintains considerable amounts of purchased and donated materials and supplies for sale to the public, for which inventory is not tracked or counted. The lack of tracking of store inventory increases the possibility of theft occurring and going unnoticed. While store inventory is not recorded on the financial statements, theft could affect store revenue in amounts material to the financial statements. This is a repeat finding as management believes, given the nature of the store inventory items, costs exceed the benefits derived from implementing the recommendation. Recommendation: We recommend store inventory item counts be taken periodically. The tracking of store inventory items could provide indications of potential theft occurring. In addition, the tracking of store inventory could provide management with information on what items are sold more frequently and should be sought out for donations as well as identify slow moving or obsolete items that should be sold at deeper discounts or discarded. Management Response: Habitat for Humanity in the Roanoke Valley, Inc. concurs with this finding as stated. As in previous years, management believes given the nature of the store inventory items, costs exceed the benefits derived from implementing the recommendation. Habitat for Humanity International, Inc.’s policy is to not track and record store inventory.
Internal control related matters related to store inventory tracking. The Habitat ReStore maintains considerable amounts of purchased and donated materials and supplies for sale to the public, for which inventory is not tracked or counted. The lack of tracking of store inventory increases the possibility of theft occurring and going unnoticed. While store inventory is not recorded on the financial statements, theft could affect store revenue in amounts material to the financial statements. This is a repeat finding as management believes, given the nature of the store inventory items, costs exceed the benefits derived from implementing the recommendation. Recommendation: We recommend store inventory item counts be taken periodically. The tracking of store inventory items could provide indications of potential theft occurring. In addition, the tracking of store inventory could provide management with information on what items are sold more frequently and should be sought out for donations as well as identify slow moving or obsolete items that should be sold at deeper discounts or discarded. Management Response: Habitat for Humanity in the Roanoke Valley, Inc. concurs with this finding as stated. As in previous years, management believes given the nature of the store inventory items, costs exceed the benefits derived from implementing the recommendation. Habitat for Humanity International, Inc.’s policy is to not track and record store inventory.