FAC Explorer

Audit 358549

FY End
2024-12-31
Total Expended
$850,603
Findings
2
Programs
2
Organization: Johnson County Housing Development Corporation (NC)
Year: 2024 Accepted: 2025-06-11
Auditor: Bernard Robinson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
564422 2024-001 - - P
1140864 2024-001 - - P

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $604,012 Yes 1
10.427 Rural Rental Assistance Payments $246,591 - 0

Contacts

Name Title Type
MGB8HLJMLST5 Sandy Lucas Auditee
3365442300 Elizabeth Danner 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. Johnson County Housing 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: Johnson County Housing 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 Johnson County Housing 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 Johnson County Housing Development Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Johnson County Housing Development Corporation.
Title: LOANS 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. Johnson County Housing 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: Johnson County Housing Development Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Johnson County Housing Development Corporation had the following loan balances outstanding at December 31, 2024: Program Title: Rural Rental Housing Loans; Assistance Listing Number: 10.415; Amount Outstanding: $565,777.43.

Finding Details

Finding 2024-001
Finding 2024-001: U.S. Department of Agriculture, Rural Development, Rural Rental Housing Loans, Assistance Listing Number #10.415 Statement of Condition: At December 31, 2024, the Corporation had $10,731.13 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 limited 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. Cause of Condition: Management did not transfer funds to separate financial institutions in a timely manner to provide for continuous FDIC insurance coverage. Effect of Condition: Noncompliance with USDA RD requirements and risk of loss of the Organization's funds. Recommendation: The Organization should continuously monitor cash balances to ensure that funds are always covered by FDIC insurance limits, collateral agreements are obtained, or funds are invested in government securities. Questioned Costs: $0 Information based on Universe and Population Size: The finding noted above was not a result of sampling. Sample Size Information: The finding noted above was not a result of sampling. Noncompliance Information: The finding noted above was not a result of sampling. Reporting Views of Responsible Officials: Management agrees with the above finding and is in the process of transferring funds to provide adequate FDIC insurance coverage for the reserve for replacements account. Management will re-evaluate its policies and procedures to determine any necessary changes.
Finding 2024-001
Finding 2024-001: U.S. Department of Agriculture, Rural Development, Rural Rental Housing Loans, Assistance Listing Number #10.415 Statement of Condition: At December 31, 2024, the Corporation had $10,731.13 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 limited 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. Cause of Condition: Management did not transfer funds to separate financial institutions in a timely manner to provide for continuous FDIC insurance coverage. Effect of Condition: Noncompliance with USDA RD requirements and risk of loss of the Organization's funds. Recommendation: The Organization should continuously monitor cash balances to ensure that funds are always covered by FDIC insurance limits, collateral agreements are obtained, or funds are invested in government securities. Questioned Costs: $0 Information based on Universe and Population Size: The finding noted above was not a result of sampling. Sample Size Information: The finding noted above was not a result of sampling. Noncompliance Information: The finding noted above was not a result of sampling. Reporting Views of Responsible Officials: Management agrees with the above finding and is in the process of transferring funds to provide adequate FDIC insurance coverage for the reserve for replacements account. Management will re-evaluate its policies and procedures to determine any necessary changes.