Audit 362565

FY End
2024-12-31
Total Expended
$3.09M
Findings
2
Programs
2
Organization: Friendship Home Association (IA)
Year: 2024 Accepted: 2025-07-18

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
571635 2024-003 - Yes N
1148077 2024-003 - Yes N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $3.07M Yes 1
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $11,097 - 0

Contacts

Name Title Type
V2HMVCEN28Q3 Rae Ann Tucker Auditee
7125632651 Alexandrea Keller 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 in the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect costs are allocated, therefore, no indirect cost rate is needed. The accompanying schedule of expenditures of federa laward s(The"Schedule")includes the federa laward activity of Friendship Home Association and Affiliate, 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 Friendship Home Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
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 the cost principles in the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect costs are allocated, therefore, no indirect cost rate is needed. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect costs are allocated, therefore, no indirect cost rate is needed. Friendship Home Association and Affiliate has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance
Title: Passed Through to Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect costs are allocated, therefore, no indirect cost rate is needed. Friendship Home Association and Affiliate does not have grants passed through to subrecipients.
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 in the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect costs are allocated, therefore, no indirect cost rate is needed. The following loan balances were outstanding at December 31, 2024: Assistance Listing Amount Number Outstanding 10.766 $3,027,519

Finding Details

Criteria: The Organization is required to maintain a calculated debt reserve fund based on annual debt payments each year as stated in the Letter of Conditions. Condition: During the audit, we identified the Organization did not maintain sufficient funds in the debt reserve account. Cause: The required monthly transfers did not occur during the fiscal year. Effect: As a result of the absent transfers, the debt reserve fund was not funded to the required amount as of December 31, 2024. Recommendation: The Organization should create a plan to bring the balance into the required amount and have procedures in place to make the monthly transfers. Client Response: We have discussed our plan to bring the debt reserve fund back to current with the governing authority and have established a process to have the monthly transfers completed.
Criteria: The Organization is required to maintain a calculated debt reserve fund based on annual debt payments each year as stated in the Letter of Conditions. Condition: During the audit, we identified the Organization did not maintain sufficient funds in the debt reserve account. Cause: The required monthly transfers did not occur during the fiscal year. Effect: As a result of the absent transfers, the debt reserve fund was not funded to the required amount as of December 31, 2024. Recommendation: The Organization should create a plan to bring the balance into the required amount and have procedures in place to make the monthly transfers. Client Response: We have discussed our plan to bring the debt reserve fund back to current with the governing authority and have established a process to have the monthly transfers completed.