FAC Explorer

Audit 50640

FY End
2022-12-31
Total Expended
$1.01M
Findings
2
Programs
2
Organization: Shalom House, Inc. (NC)
Year: 2022 Accepted: 2023-06-12
Auditor: Bernard Robinson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
41578 2022-001 - - P
618020 2022-001 - - P

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $862,789 Yes 1
10.427 Rural Rental Assistance Payments $149,904 - 0

Contacts

Name Title Type
WNEAWS2LTGK9 Joseph Moore Auditee
2529460110 Ben Timothy Smith Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: SUMMARY OF SIGNIFICANT 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. Shalom House, Inc. 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: The auditee did not use the de minimis cost rate. RURAL RENTAL HOUSING LOANS (10.415) - Balances outstanding at the end of the audit period were 813861.
Title: BASIS OF PRESENTATION- Accounting Policies: SUMMARY OF SIGNIFICANT 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. Shalom House, Inc. 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: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal awards (the "Schedule") includes the federal award activity of Shalom House, 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 Shalom House, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Shalom House, Inc.

Finding Details

Finding 2022-001
Finding 2022-1 Statement of Condition: During the year, Shalom House paid maintenance personnel wages, totaling $3,099.25, which were the expense of three other Projects. The amount is recorded as a receivable due from the other Projects at December 31, 2022. Criteria: USDA Handbook 2-3560, Chapter 4, Section 4.2 requires separate accountability and states that funds for housing projects managed by the same management company must not be co-mingled. Effect: Noncompliance with RD regulations. Cause: Payroll processing error. Context: Analyzed current year maintenance wages and investigated difference from both prior year expense and budgeted expense. Recommendation: Management should stress proper time entry and payroll processing on a regular basis to insure payroll expense is allocated properly at time of payment and in a timely manner. Questioned costs: $3,099.25 Management's Response and Corrective Action Plan: Management acknowledges that reimbursement for other Project's payroll expense should be processed and collected in a timely manner or payments allocated to the correct Project at time of payment.
Finding 2022-001
Finding 2022-1 Statement of Condition: During the year, Shalom House paid maintenance personnel wages, totaling $3,099.25, which were the expense of three other Projects. The amount is recorded as a receivable due from the other Projects at December 31, 2022. Criteria: USDA Handbook 2-3560, Chapter 4, Section 4.2 requires separate accountability and states that funds for housing projects managed by the same management company must not be co-mingled. Effect: Noncompliance with RD regulations. Cause: Payroll processing error. Context: Analyzed current year maintenance wages and investigated difference from both prior year expense and budgeted expense. Recommendation: Management should stress proper time entry and payroll processing on a regular basis to insure payroll expense is allocated properly at time of payment and in a timely manner. Questioned costs: $3,099.25 Management's Response and Corrective Action Plan: Management acknowledges that reimbursement for other Project's payroll expense should be processed and collected in a timely manner or payments allocated to the correct Project at time of payment.