Audit 51388

FY End

2022-12-31

Total Expended

$4.76M

Findings

2

Programs

3

Organization: Halls Ferry Manor, INC (MO)

Year: 2022 Accepted: 2023-03-27

Auditor: Cliftonlarsonallen

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
42652	2022-001	Significant Deficiency	-	N
619094	2022-001	Significant Deficiency	-	N

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$4.24M	Yes	1
14.195	Section 8 Housing Assistance Payments Program	$497,944	-	0
10.565	Commodity Supplemental Food Program	$13,998	-	0

Contacts

Name	Title	Type
CV75JQMNBV46	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 Halls Ferry Manor, Inc. under programs of the federal governmentfor the 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 Halls Ferry Manor, Inc., itis not intended to and does not present the financial position, changes in net deficit, or cashflows of Halls Ferry Manor, Inc.At December 31, 2022, the balance of Halls Ferry Manor, Inc.s HUD Capital Advance was$4,243,200 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. Halls FerryManor, Inc. has elected to use the 10-percent de minimis indirect cost rate as allowed underthe Uniform Guidance. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 4243200.

Finding Details

Finding 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 $1,244 of the $14,690 Surplus Cash funds from December 31, 2021 until April 4, 2022. Cause: Turnover in accounting department staff lead to oversight of this being transferred from the operating bank account to the residual receipts bank account by March 31, 2022. 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

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 $1,244 of the $14,690 Surplus Cash funds from December 31, 2021 until April 4, 2022. Cause: Turnover in accounting department staff lead to oversight of this being transferred from the operating bank account to the residual receipts bank account by March 31, 2022. 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.