FAC Explorer

Audit 348278

FY End
2023-12-31
Total Expended
$4.45M
Findings
4
Programs
2
Organization: B'nai B'rith Covenant House of Peoria Inc. II 072-Ee038 (IL)
Year: 2023 Accepted: 2025-03-25
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
530189 2023-001 Material Weakness - P
530190 2023-003 - - N
1106631 2023-001 Material Weakness - P
1106632 2023-003 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $3.73M Yes 2
14.195 Section 8 Housing Assistance Payments Program $721,423 - 0

Contacts

Name Title Type
JPPKUKJMGXN4 Jeff Cottingham Auditee
3096732252 Rusty Gibson Auditor
No contacts on file

Notes to SEFA

Title: NONMONETARY ASSISTANCE Accounting Policies: SUMMARY OF SIGNIFICANT 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 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. ----BASIS OF PRESENTATION----The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of B’nai B’rith Covenant House of Peoria, Inc., II under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of 2 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 B’nai B’rith Covenant House of Peoria, Inc., II, it is not intended to and does not present the financial position, changes in net assets, or cash flows of B’nai B’rith Covenant House of Peoria, Inc., II. De Minimis Rate Used: N Rate Explanation: B’nai B’rith Covenant House of Peoria, Inc., II has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The capital advance program mortgage note in the amount of $3,731,900 with the U.S. Department of Housing and Urban Development does not require repayment as long as the housing remains for very low-income elderly or very low-income persons with disabilities. The Project did not receive any federal awards in the form of noncash assistance for insurance in effect during the year. In addition, the Project did not pass through any federal grants to subrecipients.

Finding Details

Finding 2023-001
2023-001 – Segregation of Duties Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Assistance Listing #: 14.157 Questioned Costs: None Type of Finding: Material Weakness in Internal Control over Compliance Condition: There is not an ideal 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. This condition is inherent in operations which, 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 or Specific Requirement: 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, prior year finding 2022-001 Recommendation: When this condition exists, management’s and the board’s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities. Views of Responsible Officials and Planned Corrective Actions: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.
Finding 2023-003
2023-003 – Security Deposit Account Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Assistance Listing #: 14.157 Questioned Costs: None Type of Finding: Other Matters Condition: At December 30, 2023, the security deposit liabilities exceeded the balance of the security deposit cash account by $453. Criteria or Specific Requirement: The Project’s regulatory agreement with HUD requires that security deposits be maintained in a separate bank account which equals or exceeds the aggregate of all security deposit liabilities. Cause: Management oversight. Effect: The Project is not in compliance with its regulatory agreement. Repeat Finding: No Recommendation: We recommend management compare the security deposit cash account to the security deposit liability account on at least a monthly basis to ensure the asset is larger than the liability. Views of Responsible Officials and Planned Corrective Actions: Management agrees and will continue to monitor the security deposit balances to ensure they maintain compliance with the regulatory agreement.
Finding 2023-001
2023-001 – Segregation of Duties Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Assistance Listing #: 14.157 Questioned Costs: None Type of Finding: Material Weakness in Internal Control over Compliance Condition: There is not an ideal 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. This condition is inherent in operations which, 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 or Specific Requirement: 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, prior year finding 2022-001 Recommendation: When this condition exists, management’s and the board’s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities. Views of Responsible Officials and Planned Corrective Actions: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.
Finding 2023-003
2023-003 – Security Deposit Account Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Assistance Listing #: 14.157 Questioned Costs: None Type of Finding: Other Matters Condition: At December 30, 2023, the security deposit liabilities exceeded the balance of the security deposit cash account by $453. Criteria or Specific Requirement: The Project’s regulatory agreement with HUD requires that security deposits be maintained in a separate bank account which equals or exceeds the aggregate of all security deposit liabilities. Cause: Management oversight. Effect: The Project is not in compliance with its regulatory agreement. Repeat Finding: No Recommendation: We recommend management compare the security deposit cash account to the security deposit liability account on at least a monthly basis to ensure the asset is larger than the liability. Views of Responsible Officials and Planned Corrective Actions: Management agrees and will continue to monitor the security deposit balances to ensure they maintain compliance with the regulatory agreement.