FAC Explorer

Audit 50043

FY End
2022-12-31
Total Expended
$4.22M
Findings
2
Programs
2
Organization: Westward Heights (WY)
Year: 2022 Accepted: 2023-10-01
Auditor: Decoria & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50941 2022-002 Significant Deficiency - L
627383 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $4.19M Yes 1
93.498 Provider Relief Fund $38,052 - 0

Contacts

Name Title Type
K2LJADMGW6L3 Caitlin Delbridge Auditee
3073325560 Mike Burton Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Westward Heights and is presented on the modified 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). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - Balances outstanding at the end of the audit period were 4118664.
Title: USDA Community Facilities Loan Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Westward Heights and is presented on the modified 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). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Prior to 2022s compliance supplement, Community Facilities (CF) loans did not have continuing compliance requirements and thus were not required to be audited under 2 CFP Part 200, Subpart F in years after project completion. However, USDA has now changed this position and determined that CF loans have continuing compliance requirements. Therefore, the total outstanding balance of the loan at the beginning of audit period should be considered federal awards expended, included in determining Type A programs, and reported as loans on the Schedule of Expenditures of Federal Awards.

Finding Details

Finding 2022-002
Finding 2022-002 Assistance Listing 10.766 Title Community Facility Loans and Grants Federal Grantor U.S. Department of Agriculture Compliance Area Reporting Type of Finding Internal Control ? Significant Deficiency Questioned Costs None Reported Repeat Finding No Criteria 2 CFR 200.327 establishes that reports be complete, accurate, and supported by accounting records (if applicable) and be submitted in compliance with the appropriate deadlines. Condition Westward Heights submitted the proposed 2023 annual budget to the USDA February 21, 2023. The 3rd Quarter Report was submitted November 18, 2022. The annual budget was due November 30, 2022. Quarterly reports are due by the end of the following month. Cause Westward Heights did not have an internal control policy in place to ensure timely closing of month-end or year-end financials. Effect The lack of policy resulted in multiple reports being submitted to the USDA after the due date. Recommendation We recommend that Westward Heights establish deadlines for accounting personnel to complete month-end and year-end financials. Views of Responsible Officials Management and Westward Heights? Board of Directors agree with the finding. See Westward Heights? Corrective Action Plan.
Finding 2022-002
Finding 2022-002 Assistance Listing 10.766 Title Community Facility Loans and Grants Federal Grantor U.S. Department of Agriculture Compliance Area Reporting Type of Finding Internal Control ? Significant Deficiency Questioned Costs None Reported Repeat Finding No Criteria 2 CFR 200.327 establishes that reports be complete, accurate, and supported by accounting records (if applicable) and be submitted in compliance with the appropriate deadlines. Condition Westward Heights submitted the proposed 2023 annual budget to the USDA February 21, 2023. The 3rd Quarter Report was submitted November 18, 2022. The annual budget was due November 30, 2022. Quarterly reports are due by the end of the following month. Cause Westward Heights did not have an internal control policy in place to ensure timely closing of month-end or year-end financials. Effect The lack of policy resulted in multiple reports being submitted to the USDA after the due date. Recommendation We recommend that Westward Heights establish deadlines for accounting personnel to complete month-end and year-end financials. Views of Responsible Officials Management and Westward Heights? Board of Directors agree with the finding. See Westward Heights? Corrective Action Plan.