FAC Explorer

Audit 47501

FY End
2022-12-31
Total Expended
$4.61M
Findings
2
Programs
3
Organization: Rose Hill House, Inc. (MO)
Year: 2022 Accepted: 2023-03-27
Auditor: Cliftonlarsonallen

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43636 2022-001 Significant Deficiency - N
620078 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $4.37M Yes 1
14.195 Section 8 Housing Assistance Payments Program $243,298 - 0
10.565 Commodity Supplemental Food Program $706 - 0

Contacts

Name Title Type
J69LSFBECC73 Laura Mullins Auditee
3144462569 Jeff Heitgerd Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of Rose Hill House, Inc. under programs of the federal government forthe year ended December 31, 2022. The information in this Schedule is presented inaccordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Becausethe Schedule presents only a selected portion of the operations of Rose Hill House, Inc., it isnot intended to and does not present the financial position, changes in net deficit, or cashflows of Rose Hill House, Inc.At December 31, 2022, the balance of Rose Hill House, Inc.s HUD Capital Advance was$4,366,600 as represented by the Supportive Housing for the Elderly federal programabove. De Minimis Rate Used: Both Rate Explanation: Expenditures reported on the Schedule are reported on the accrual basis of accounting.Such expenditures are recognized following, as applicable, either the cost principles in OMBCircular A-122, Cost Principles for Non-Profit Organizations, or the cost principles containedin Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. Rose Hill House,Inc. has elected to use the 10-percent de minimis indirect cost rate as allowed under theUniform Guidance. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 4366600.

Finding Details

Finding 2022-001
2022 ? 001 Type of Finding: ? Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires Surplus Cash to be deposited into the Residual Receipts account 90 days after year end. Condition: During our testing, we noted the Project did not have adequate internal controls designed to ensure surplus cash was deposited timely into the Residual Receipts account. Questioned costs: None Context: During our testing, it was noted that the Project did not deposit the $7,655 of Surplus Cash funds from December 31, 2021 until April 4, 2022. Cause: Turnover in accounting department staff lead to oversight of $7,655 being transferred by March 31, 2022 from the operating bank account to the Residual Receipt bank account. Effect: The required surplus cash deposit was not deposited timely in accordance with the Regulatory Agreement. Repeat Finding: Not a repeat finding Recommendation: We recommend the Project review controls to include timely review of year-end financials and surplus cash calculation so surplus cash is deposited timely. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-001
2022 ? 001 Type of Finding: ? Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires Surplus Cash to be deposited into the Residual Receipts account 90 days after year end. Condition: During our testing, we noted the Project did not have adequate internal controls designed to ensure surplus cash was deposited timely into the Residual Receipts account. Questioned costs: None Context: During our testing, it was noted that the Project did not deposit the $7,655 of Surplus Cash funds from December 31, 2021 until April 4, 2022. Cause: Turnover in accounting department staff lead to oversight of $7,655 being transferred by March 31, 2022 from the operating bank account to the Residual Receipt bank account. Effect: The required surplus cash deposit was not deposited timely in accordance with the Regulatory Agreement. Repeat Finding: Not a repeat finding Recommendation: We recommend the Project review controls to include timely review of year-end financials and surplus cash calculation so surplus cash is deposited timely. Views of responsible officials: There is no disagreement with the audit finding.