FAC Explorer

Audit 48393

FY End
2022-12-31
Total Expended
$2.55M
Findings
6
Programs
2
Organization: Wesley Village INC (OH)
Year: 2022 Accepted: 2023-04-03
Auditor: Hw&co

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
45211 2022-003 Significant Deficiency Yes P
45212 2022-003 Significant Deficiency Yes P
45213 2022-003 Significant Deficiency Yes P
621653 2022-003 Significant Deficiency Yes P
621654 2022-003 Significant Deficiency Yes P
621655 2022-003 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
10.427 Rural Rental Assistance Payments $175,297 Yes 1
10.415 Rural Rental Housing Loans $86,200 Yes 1

Contacts

Name Title Type
EL95JA4LJG39 Carol Jenot Auditee
4194351124 Russell E Majkrzak Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances 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.Basis of presentation:The accompanying schedule of expenditures of Federal awards (Schedule) includes the federal award activity of Wesley Village, Inc. under programs of the Federal government for the year ended December 31, 2022. 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 Wesley Village, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Wesley Village, Inc. De Minimis Rate Used: N Rate Explanation: Wesley Village, Inc. has elected not to use the 10 percent de minimus cost rate as allowed under Uniform Guidance. RURAL RENTAL HOUSING LOANS (10.415) - Balances outstanding at the end of the audit period were 2278286.

Finding Details

Finding 2022-003
Condition: Project funds including restricted funds (taxes and insurance) were invested in investments other than in accordance with the USDA Handbook. Criteria: In accordance with the USDA Handbook project funds should be in the form of a cash deposit or invested in obligations backed by the U.S. Government or an Agency of the U.S. Government, Triple A-rated Government National Mortgage Association or Triple A-rate pre-refunded bond. Cause: Management invested a portion of project funds and restricted deposits (taxes and insurance) in mutual funds in an effort to generate higher investment income for the Project. Effect of Potential Effect: The effect of this finding, which cannot be quantified, is that funds invested in mutual funds are exposed to various risks such as market and credit risks. Recommendation: We recommend that management invest Project funds and restricted funds in investments that are in accordance with the USDA Handbook. View of Responsible Officials and Planned Corrective Action: Management is aware of such market and credit risks and, therefore the Project Sponsor (Good Shepherd Home) is committed to reimburse the Project for any net cumulative realized investment losses that the Project incurs. There is a cumulative net gain through December 31, 2022.
Finding 2022-003
Condition: Project funds including restricted funds (taxes and insurance) were invested in investments other than in accordance with the USDA Handbook. Criteria: In accordance with the USDA Handbook project funds should be in the form of a cash deposit or invested in obligations backed by the U.S. Government or an Agency of the U.S. Government, Triple A-rated Government National Mortgage Association or Triple A-rate pre-refunded bond. Cause: Management invested a portion of project funds and restricted deposits (taxes and insurance) in mutual funds in an effort to generate higher investment income for the Project. Effect of Potential Effect: The effect of this finding, which cannot be quantified, is that funds invested in mutual funds are exposed to various risks such as market and credit risks. Recommendation: We recommend that management invest Project funds and restricted funds in investments that are in accordance with the USDA Handbook. View of Responsible Officials and Planned Corrective Action: Management is aware of such market and credit risks and, therefore the Project Sponsor (Good Shepherd Home) is committed to reimburse the Project for any net cumulative realized investment losses that the Project incurs. There is a cumulative net gain through December 31, 2022.
Finding 2022-003
Condition: Project funds including restricted funds (taxes and insurance) were invested in investments other than in accordance with the USDA Handbook. Criteria: In accordance with the USDA Handbook project funds should be in the form of a cash deposit or invested in obligations backed by the U.S. Government or an Agency of the U.S. Government, Triple A-rated Government National Mortgage Association or Triple A-rate pre-refunded bond. Cause: Management invested a portion of project funds and restricted deposits (taxes and insurance) in mutual funds in an effort to generate higher investment income for the Project. Effect of Potential Effect: The effect of this finding, which cannot be quantified, is that funds invested in mutual funds are exposed to various risks such as market and credit risks. Recommendation: We recommend that management invest Project funds and restricted funds in investments that are in accordance with the USDA Handbook. View of Responsible Officials and Planned Corrective Action: Management is aware of such market and credit risks and, therefore the Project Sponsor (Good Shepherd Home) is committed to reimburse the Project for any net cumulative realized investment losses that the Project incurs. There is a cumulative net gain through December 31, 2022.
Finding 2022-003
Condition: Project funds including restricted funds (taxes and insurance) were invested in investments other than in accordance with the USDA Handbook. Criteria: In accordance with the USDA Handbook project funds should be in the form of a cash deposit or invested in obligations backed by the U.S. Government or an Agency of the U.S. Government, Triple A-rated Government National Mortgage Association or Triple A-rate pre-refunded bond. Cause: Management invested a portion of project funds and restricted deposits (taxes and insurance) in mutual funds in an effort to generate higher investment income for the Project. Effect of Potential Effect: The effect of this finding, which cannot be quantified, is that funds invested in mutual funds are exposed to various risks such as market and credit risks. Recommendation: We recommend that management invest Project funds and restricted funds in investments that are in accordance with the USDA Handbook. View of Responsible Officials and Planned Corrective Action: Management is aware of such market and credit risks and, therefore the Project Sponsor (Good Shepherd Home) is committed to reimburse the Project for any net cumulative realized investment losses that the Project incurs. There is a cumulative net gain through December 31, 2022.
Finding 2022-003
Condition: Project funds including restricted funds (taxes and insurance) were invested in investments other than in accordance with the USDA Handbook. Criteria: In accordance with the USDA Handbook project funds should be in the form of a cash deposit or invested in obligations backed by the U.S. Government or an Agency of the U.S. Government, Triple A-rated Government National Mortgage Association or Triple A-rate pre-refunded bond. Cause: Management invested a portion of project funds and restricted deposits (taxes and insurance) in mutual funds in an effort to generate higher investment income for the Project. Effect of Potential Effect: The effect of this finding, which cannot be quantified, is that funds invested in mutual funds are exposed to various risks such as market and credit risks. Recommendation: We recommend that management invest Project funds and restricted funds in investments that are in accordance with the USDA Handbook. View of Responsible Officials and Planned Corrective Action: Management is aware of such market and credit risks and, therefore the Project Sponsor (Good Shepherd Home) is committed to reimburse the Project for any net cumulative realized investment losses that the Project incurs. There is a cumulative net gain through December 31, 2022.
Finding 2022-003
Condition: Project funds including restricted funds (taxes and insurance) were invested in investments other than in accordance with the USDA Handbook. Criteria: In accordance with the USDA Handbook project funds should be in the form of a cash deposit or invested in obligations backed by the U.S. Government or an Agency of the U.S. Government, Triple A-rated Government National Mortgage Association or Triple A-rate pre-refunded bond. Cause: Management invested a portion of project funds and restricted deposits (taxes and insurance) in mutual funds in an effort to generate higher investment income for the Project. Effect of Potential Effect: The effect of this finding, which cannot be quantified, is that funds invested in mutual funds are exposed to various risks such as market and credit risks. Recommendation: We recommend that management invest Project funds and restricted funds in investments that are in accordance with the USDA Handbook. View of Responsible Officials and Planned Corrective Action: Management is aware of such market and credit risks and, therefore the Project Sponsor (Good Shepherd Home) is committed to reimburse the Project for any net cumulative realized investment losses that the Project incurs. There is a cumulative net gain through December 31, 2022.