FAC Explorer

Audit 353872

FY End
2024-06-30
Total Expended
$2.26M
Findings
6
Programs
10
Organization: Habitat for Humanity of Michigan, Inc. (MI)
Year: 2024 Accepted: 2025-04-16
Auditor: Yeo & Yeo PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555238 2024-002 Significant Deficiency - P
555239 2024-002 Significant Deficiency - P
555240 2024-002 Significant Deficiency - P
1131680 2024-002 Significant Deficiency - P
1131681 2024-002 Significant Deficiency - P
1131682 2024-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.913 Healthy Homes Production Program $738,499 Yes 1
14.278 Veterans Housing Rehabilitation and Modification Program $387,399 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $320,151 Yes 1
21.000 Round I Network Expendable and Capital Grant Request $296,000 - 0
21.000 Housing Stability Consueling Program Application $53,040 - 0
14.169 Housing Counseling Assistance Program $38,000 - 0
10.466 Minority-Serving Institutions Partnership $12,716 - 0
21.000 Network Supplemental Request Internal 2024 $5,500 - 0
21.000 Network Supplemental Request Internal 2023 $1,000 - 0
21.000 Neighborworks Week Request 2024 $1,000 - 0

Contacts

Name Title Type
YEVHPUL56R36 Don Wilkinson Auditee
6163508768 Bradley M. Devries Auditor
No contacts on file

Notes to SEFA

Title: General 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 where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Habitat for Humanity of Michigan, Inc., has elected to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Habitat for Humanity of Michigan, Inc., and its wholly owned subsidiary (Fair Lending Services) 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 Habitat for Humanity of Michigan, Inc., and Subsidiary it is not intended to and does not present the financial position, changes in net assets, or cash flows of Habitat for Humanity of Michigan, Inc., and Subsidiary.
Title: Subrecipients 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 where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Habitat for Humanity of Michigan, Inc., has elected to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Habitat for Humanity of Michigan, Inc., did not provide federal funds to subrecipients for any programs listed in the Schedule of Federal Awards.
Title: Relationship to the Basic Financial Statements 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 where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Habitat for Humanity of Michigan, Inc., has elected to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal revenues reported on the statement of activities agrees to the total reported on the schedule of expenditures of federal awards.

Finding Details

Finding 2024-002
Criteria: Proper internal controls and compliance with federal regulations require the maintenance of accurate and complete records to support federal award transactions. Additionally, effective succession planning is necessary to ensure continuity of operations and knowledge transfer. Condition: During our audit, we noted that the Organization had to recreate records and supporting documentation for federal transactions due to the departure of key staff members responsible for managing federal awards. Cause: The Organization lacked adequate procedures for record retention and succession planning for staff managing federal awards. When key personnel left, critical information and documentation were not readily available or properly transferred to new staff. Effect: this deficiency resulted in: 1. Significant time and resources spent recreating necessary documentation; 2. Increased risk of non-compliance with federal award requirements; 3. Potential for errors or misstatements in financial reporting related to federal awards; 4. Delays in the audit process. Recommendation: We recommend that the Organization: 1. Implement a comprehensive record retention policy specific to federal award management; 2. Develop and maintain detailed procedure manuals for federal award processes; 3. Establish a formal succession planning process for key positions, including cross-training of staff; 4. Consider implementing a document management system to centralize and secure critical records. Auditee Response: Management concurs with the finding and is committed to improving its record retention practices and succession planning for federal award management and has taken steps under its new leadership team to address these issues.
Finding 2024-002
Criteria: Proper internal controls and compliance with federal regulations require the maintenance of accurate and complete records to support federal award transactions. Additionally, effective succession planning is necessary to ensure continuity of operations and knowledge transfer. Condition: During our audit, we noted that the Organization had to recreate records and supporting documentation for federal transactions due to the departure of key staff members responsible for managing federal awards. Cause: The Organization lacked adequate procedures for record retention and succession planning for staff managing federal awards. When key personnel left, critical information and documentation were not readily available or properly transferred to new staff. Effect: this deficiency resulted in: 1. Significant time and resources spent recreating necessary documentation; 2. Increased risk of non-compliance with federal award requirements; 3. Potential for errors or misstatements in financial reporting related to federal awards; 4. Delays in the audit process. Recommendation: We recommend that the Organization: 1. Implement a comprehensive record retention policy specific to federal award management; 2. Develop and maintain detailed procedure manuals for federal award processes; 3. Establish a formal succession planning process for key positions, including cross-training of staff; 4. Consider implementing a document management system to centralize and secure critical records. Auditee Response: Management concurs with the finding and is committed to improving its record retention practices and succession planning for federal award management and has taken steps under its new leadership team to address these issues.
Finding 2024-002
Criteria: Proper internal controls and compliance with federal regulations require the maintenance of accurate and complete records to support federal award transactions. Additionally, effective succession planning is necessary to ensure continuity of operations and knowledge transfer. Condition: During our audit, we noted that the Organization had to recreate records and supporting documentation for federal transactions due to the departure of key staff members responsible for managing federal awards. Cause: The Organization lacked adequate procedures for record retention and succession planning for staff managing federal awards. When key personnel left, critical information and documentation were not readily available or properly transferred to new staff. Effect: this deficiency resulted in: 1. Significant time and resources spent recreating necessary documentation; 2. Increased risk of non-compliance with federal award requirements; 3. Potential for errors or misstatements in financial reporting related to federal awards; 4. Delays in the audit process. Recommendation: We recommend that the Organization: 1. Implement a comprehensive record retention policy specific to federal award management; 2. Develop and maintain detailed procedure manuals for federal award processes; 3. Establish a formal succession planning process for key positions, including cross-training of staff; 4. Consider implementing a document management system to centralize and secure critical records. Auditee Response: Management concurs with the finding and is committed to improving its record retention practices and succession planning for federal award management and has taken steps under its new leadership team to address these issues.
Finding 2024-002
Criteria: Proper internal controls and compliance with federal regulations require the maintenance of accurate and complete records to support federal award transactions. Additionally, effective succession planning is necessary to ensure continuity of operations and knowledge transfer. Condition: During our audit, we noted that the Organization had to recreate records and supporting documentation for federal transactions due to the departure of key staff members responsible for managing federal awards. Cause: The Organization lacked adequate procedures for record retention and succession planning for staff managing federal awards. When key personnel left, critical information and documentation were not readily available or properly transferred to new staff. Effect: this deficiency resulted in: 1. Significant time and resources spent recreating necessary documentation; 2. Increased risk of non-compliance with federal award requirements; 3. Potential for errors or misstatements in financial reporting related to federal awards; 4. Delays in the audit process. Recommendation: We recommend that the Organization: 1. Implement a comprehensive record retention policy specific to federal award management; 2. Develop and maintain detailed procedure manuals for federal award processes; 3. Establish a formal succession planning process for key positions, including cross-training of staff; 4. Consider implementing a document management system to centralize and secure critical records. Auditee Response: Management concurs with the finding and is committed to improving its record retention practices and succession planning for federal award management and has taken steps under its new leadership team to address these issues.
Finding 2024-002
Criteria: Proper internal controls and compliance with federal regulations require the maintenance of accurate and complete records to support federal award transactions. Additionally, effective succession planning is necessary to ensure continuity of operations and knowledge transfer. Condition: During our audit, we noted that the Organization had to recreate records and supporting documentation for federal transactions due to the departure of key staff members responsible for managing federal awards. Cause: The Organization lacked adequate procedures for record retention and succession planning for staff managing federal awards. When key personnel left, critical information and documentation were not readily available or properly transferred to new staff. Effect: this deficiency resulted in: 1. Significant time and resources spent recreating necessary documentation; 2. Increased risk of non-compliance with federal award requirements; 3. Potential for errors or misstatements in financial reporting related to federal awards; 4. Delays in the audit process. Recommendation: We recommend that the Organization: 1. Implement a comprehensive record retention policy specific to federal award management; 2. Develop and maintain detailed procedure manuals for federal award processes; 3. Establish a formal succession planning process for key positions, including cross-training of staff; 4. Consider implementing a document management system to centralize and secure critical records. Auditee Response: Management concurs with the finding and is committed to improving its record retention practices and succession planning for federal award management and has taken steps under its new leadership team to address these issues.
Finding 2024-002
Criteria: Proper internal controls and compliance with federal regulations require the maintenance of accurate and complete records to support federal award transactions. Additionally, effective succession planning is necessary to ensure continuity of operations and knowledge transfer. Condition: During our audit, we noted that the Organization had to recreate records and supporting documentation for federal transactions due to the departure of key staff members responsible for managing federal awards. Cause: The Organization lacked adequate procedures for record retention and succession planning for staff managing federal awards. When key personnel left, critical information and documentation were not readily available or properly transferred to new staff. Effect: this deficiency resulted in: 1. Significant time and resources spent recreating necessary documentation; 2. Increased risk of non-compliance with federal award requirements; 3. Potential for errors or misstatements in financial reporting related to federal awards; 4. Delays in the audit process. Recommendation: We recommend that the Organization: 1. Implement a comprehensive record retention policy specific to federal award management; 2. Develop and maintain detailed procedure manuals for federal award processes; 3. Establish a formal succession planning process for key positions, including cross-training of staff; 4. Consider implementing a document management system to centralize and secure critical records. Auditee Response: Management concurs with the finding and is committed to improving its record retention practices and succession planning for federal award management and has taken steps under its new leadership team to address these issues.