FAC Explorer

Audit 54324

FY End
2022-12-31
Total Expended
$3.60M
Findings
4
Programs
6
Organization: Tenants to Homeowners, Inc. (KS)
Year: 2022 Accepted: 2023-09-28
Auditor: Ssc CPA P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59520 2022-002 Material Weakness - P
59521 2022-002 Material Weakness - P
635962 2022-002 Material Weakness - P
635963 2022-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.12M Yes 1
14.239 Home Investment Partnerships Program $500,000 - 0
21.029 Coronavirus Capital Projects Fund Program $175,000 Yes 1
14.218 Community Development Block Grants/entitlement Grants $100,000 - 0
21.023 Emergency Rental Assistance Program $93,682 - 0
14.231 Emergency Solutions Grant Program $195 - 0

Contacts

Name Title Type
V888YCNKX1R7 Rebecca Buford Auditee
7857602058 Timothy D. Bannwarth Auditor
No contacts on file

Notes to SEFA

Title: LOANS OUTSTANDING AT YEAR END Accounting Policies: Expenditures reported in 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organizations outstanding forgivable loans balances with the U.S Department of Housing and Urban Development (passed through the Kansas Housing Resource Corporation) as of December 31, 2022 totaled $1,000,000.
Title: CLASSIFICATIONS OF EXPENDITURES Accounting Policies: Expenditures reported in 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The schedule includes $2,060,000 of expenditures of federal awards under Coronavirus State and Local Fiscal Recovery Funds program, Assistance Listing Number 21.027, that were used to purchase properties inventory and property and equipment in the amount of $840,000 and $1,220,000, respectively, that is recorded in the Consolidated Statements of Financial Position of the Organization as of December 31, 2022
Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in 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. 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 (the schedule) includes the federal grant activity of Tenants to Homeowners, Inc. (the Organization) and is presented on the 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). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization

Finding Details

Finding 2022-002
2022-002 Internal Controls over Schedule of Expenditures of Federal Awards Preparation (Material Weakness) Federal Agency: Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award period: Year ended December 31, 2022 Criteria: According to 2 CFR 200, Subpart F, the Organization is required to prepare a schedule of federal expenditures, which must include the total federal awards expended as determined in accordance with ?200.502. An effective internal control system exists if controls are effective in preventing or detecting material misstatements in the preparation of the schedule of federal expenditures of federal awards (the schedule). It provides reasonable assurance for the reliability of financial information and compliance with laws and regulations. Condition: We have determined that there was an inadequate design of internal control over the preparation of the schedule during the fiscal year ended December 31, 2022. The current financial reporting process does not ensure accuracy and completeness in the preparation of the schedule as required by Uniform Guidance. Cause: The Organization?s policies and procedures were not designed to prepare the schedule in conformity with Uniform Guidance. Effect: The Organization did not prepare the schedule in conformity with Uniform Guidance as material adjustments were made to the expenditures of federal awards. This includes identifying the correct assistance listing number of its federal programs. This increases the likelihood of a material misstatement and noncompliance with laws and regulations. Recommendation: We recommend the Board of Directors and management review the financial reporting process. Once this review is complete, the Organization should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure conformity with Uniform Guidance. Questioned costs: None Repeat Finding: N/a. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper written policies and procedures for the internal control over compliance to ensure accuracy and completeness in the preparation of the schedule as required by Uniform Guidance.
Finding 2022-002
2022-002 Internal Controls over Schedule of Expenditures of Federal Awards Preparation (Material Weakness) Federal Agency: Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award period: Year ended December 31, 2022 Criteria: According to 2 CFR 200, Subpart F, the Organization is required to prepare a schedule of federal expenditures, which must include the total federal awards expended as determined in accordance with ?200.502. An effective internal control system exists if controls are effective in preventing or detecting material misstatements in the preparation of the schedule of federal expenditures of federal awards (the schedule). It provides reasonable assurance for the reliability of financial information and compliance with laws and regulations. Condition: We have determined that there was an inadequate design of internal control over the preparation of the schedule during the fiscal year ended December 31, 2022. The current financial reporting process does not ensure accuracy and completeness in the preparation of the schedule as required by Uniform Guidance. Cause: The Organization?s policies and procedures were not designed to prepare the schedule in conformity with Uniform Guidance. Effect: The Organization did not prepare the schedule in conformity with Uniform Guidance as material adjustments were made to the expenditures of federal awards. This includes identifying the correct assistance listing number of its federal programs. This increases the likelihood of a material misstatement and noncompliance with laws and regulations. Recommendation: We recommend the Board of Directors and management review the financial reporting process. Once this review is complete, the Organization should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure conformity with Uniform Guidance. Questioned costs: None Repeat Finding: N/a. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper written policies and procedures for the internal control over compliance to ensure accuracy and completeness in the preparation of the schedule as required by Uniform Guidance.
Finding 2022-002
2022-002 Internal Controls over Schedule of Expenditures of Federal Awards Preparation (Material Weakness) Federal Agency: Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award period: Year ended December 31, 2022 Criteria: According to 2 CFR 200, Subpart F, the Organization is required to prepare a schedule of federal expenditures, which must include the total federal awards expended as determined in accordance with ?200.502. An effective internal control system exists if controls are effective in preventing or detecting material misstatements in the preparation of the schedule of federal expenditures of federal awards (the schedule). It provides reasonable assurance for the reliability of financial information and compliance with laws and regulations. Condition: We have determined that there was an inadequate design of internal control over the preparation of the schedule during the fiscal year ended December 31, 2022. The current financial reporting process does not ensure accuracy and completeness in the preparation of the schedule as required by Uniform Guidance. Cause: The Organization?s policies and procedures were not designed to prepare the schedule in conformity with Uniform Guidance. Effect: The Organization did not prepare the schedule in conformity with Uniform Guidance as material adjustments were made to the expenditures of federal awards. This includes identifying the correct assistance listing number of its federal programs. This increases the likelihood of a material misstatement and noncompliance with laws and regulations. Recommendation: We recommend the Board of Directors and management review the financial reporting process. Once this review is complete, the Organization should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure conformity with Uniform Guidance. Questioned costs: None Repeat Finding: N/a. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper written policies and procedures for the internal control over compliance to ensure accuracy and completeness in the preparation of the schedule as required by Uniform Guidance.
Finding 2022-002
2022-002 Internal Controls over Schedule of Expenditures of Federal Awards Preparation (Material Weakness) Federal Agency: Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award period: Year ended December 31, 2022 Criteria: According to 2 CFR 200, Subpart F, the Organization is required to prepare a schedule of federal expenditures, which must include the total federal awards expended as determined in accordance with ?200.502. An effective internal control system exists if controls are effective in preventing or detecting material misstatements in the preparation of the schedule of federal expenditures of federal awards (the schedule). It provides reasonable assurance for the reliability of financial information and compliance with laws and regulations. Condition: We have determined that there was an inadequate design of internal control over the preparation of the schedule during the fiscal year ended December 31, 2022. The current financial reporting process does not ensure accuracy and completeness in the preparation of the schedule as required by Uniform Guidance. Cause: The Organization?s policies and procedures were not designed to prepare the schedule in conformity with Uniform Guidance. Effect: The Organization did not prepare the schedule in conformity with Uniform Guidance as material adjustments were made to the expenditures of federal awards. This includes identifying the correct assistance listing number of its federal programs. This increases the likelihood of a material misstatement and noncompliance with laws and regulations. Recommendation: We recommend the Board of Directors and management review the financial reporting process. Once this review is complete, the Organization should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure conformity with Uniform Guidance. Questioned costs: None Repeat Finding: N/a. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper written policies and procedures for the internal control over compliance to ensure accuracy and completeness in the preparation of the schedule as required by Uniform Guidance.