FAC Explorer

Audit 348276

FY End
2024-12-31
Total Expended
$3.58M
Findings
4
Programs
1
Organization: Hanna City Home Association D/b/a Heritage Senior Homes (IL)
Year: 2024 Accepted: 2025-03-25
Auditor: Gordon Stockman & Waugh PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
530187 2024-001 Material Weakness Yes P
530188 2024-001 Material Weakness Yes P
1106629 2024-001 Material Weakness Yes P
1106630 2024-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $242,345 Yes 1

Contacts

Name Title Type
JMHGJVTDPVX5 Jeff Cottingham Auditee
3096732252 Andrew Ryon Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized folling the cost principles containted in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: PROGRAMS ARE NOT BASED ON COST REIMBURSEMENTS. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Hanna City Home Association Project No. 072-EE164 (the Project) and is presented on the accrual basis of accounting. 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.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized folling the cost principles containted in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: PROGRAMS ARE NOT BASED ON COST REIMBURSEMENTS. 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. The Project has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 3. Nonmonetary Assistance Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized folling the cost principles containted in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: PROGRAMS ARE NOT BASED ON COST REIMBURSEMENTS. The capital advance program mortgage note in the amount of $3,336,100 with the U.S. Department of Housing and Urban Development does not require repayment as long as the housing remains for low income elderly persons.

Finding Details

Finding 2024-001
Condition: There is minimal segregation of duties among personnel involved in the accounting function. A lack of proper segregation of duties could allow errors or irregularities to occur and go undetected. Due to budgetary constraints imposed by HUD, small projects, for sound economic conditions, must function with a small number of office personnel and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical.Criteria: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, if possible.Cause: For sound economic reasons, the Project and the management company must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Effect: A lack of segregation of duties increases the risk that errors or fraud may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes. 2023-001. Recommendation: When this condition exists, management’s close supervision and review of accounting information is the best means of preventing or detecting errors and irregularities. Management Response: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.
Finding 2024-001
Condition: There is minimal segregation of duties among personnel involved in the accounting function. A lack of proper segregation of duties could allow errors or irregularities to occur and go undetected. Due to budgetary constraints imposed by HUD, small projects, for sound economic conditions, must function with a small number of office personnel and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical.Criteria: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, if possible.Cause: For sound economic reasons, the Project and the management company must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Effect: A lack of segregation of duties increases the risk that errors or fraud may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes. 2023-001. Recommendation: When this condition exists, management’s close supervision and review of accounting information is the best means of preventing or detecting errors and irregularities. Management Response: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.
Finding 2024-001
Condition: There is minimal segregation of duties among personnel involved in the accounting function. A lack of proper segregation of duties could allow errors or irregularities to occur and go undetected. Due to budgetary constraints imposed by HUD, small projects, for sound economic conditions, must function with a small number of office personnel and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical.Criteria: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, if possible.Cause: For sound economic reasons, the Project and the management company must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Effect: A lack of segregation of duties increases the risk that errors or fraud may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes. 2023-001. Recommendation: When this condition exists, management’s close supervision and review of accounting information is the best means of preventing or detecting errors and irregularities. Management Response: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.
Finding 2024-001
Condition: There is minimal segregation of duties among personnel involved in the accounting function. A lack of proper segregation of duties could allow errors or irregularities to occur and go undetected. Due to budgetary constraints imposed by HUD, small projects, for sound economic conditions, must function with a small number of office personnel and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical.Criteria: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented, if possible.Cause: For sound economic reasons, the Project and the management company must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Effect: A lack of segregation of duties increases the risk that errors or fraud may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes. 2023-001. Recommendation: When this condition exists, management’s close supervision and review of accounting information is the best means of preventing or detecting errors and irregularities. Management Response: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.