FAC Explorer

Audit 55780

FY End
2022-09-30
Total Expended
$2.08M
Findings
2
Programs
2
Organization: Friendship House Apartments, Inc. (MO)
Year: 2022 Accepted: 2023-06-26
Auditor: Wipfli LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59699 2022-001 - - N
636141 2022-001 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $2.00M Yes 1
14.326 Project Rental Assistance Demonstration (pra Demo) Program of Section 811 Supportive Housing for Persons with Disabilities $77,700 - 0

Contacts

Name Title Type
C4Z3MBQL9GT1 Gregory L. Shinn Auditee
5737609400 Karl Eck Auditor
No contacts on file

Notes to SEFA

Title: Capital Advance Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Friendship House Apartments, Inc. under programs of the federal government for the year ended September 30, 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 Friendship House Apartments, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Friendship House Apartments, Inc. 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. De Minimis Rate Used: N Rate Explanation: Friendship House Apartments, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. 'This is a capital advance from the Department of Housing and Urban Development (see financial statement Note 6). The capital advance balance at September 30, 2022 was $2,004,400.
Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Friendship House Apartments, Inc. under programs of the federal government for the year ended September 30, 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 Friendship House Apartments, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Friendship House Apartments, Inc. 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. De Minimis Rate Used: N Rate Explanation: Friendship House Apartments, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. Friendship House Apartments, Inc. does not have any subrecipients or subrecipient expenditures as of September 30, 2022.

Finding Details

Finding 2022-001
Finding 2022-001: Deposit of Surplus Cash into a Residual Receipts Account Department of Housing and Urban Development (HUD) ? AL #14.181 Supportive Housing for Persons with Disabilities ? Capital Advance Questioned Costs: None Condition: Friendship House Apartments, Inc. had surplus cash of $30,525 on hand at September 30, 2021. Approval was obtained from HUD to utilize $25,200 of the surplus cash for heating and air conditioning units, leaving remaining surplus cash of $5,325. HUD approval was not received and the remaining surplus cash was not remitted within 90 days of year end. Criteria: The Consolidated Audit Guide for Audits of HUD Programs and the compliance requirements for AL #14.181 state that any surplus cash as calculated under HUD guidelines in the project funds account at the end of the fiscal year be deposited in a federally insured residual receipts account within 90 days following the end of the fiscal year. Cause: Friendship House Apartments, Inc. delayed remitting the surplus cash while it was waiting for approval from HUD to use the surplus cash for capital purchases. The approval was received after the 90 day remittance period. Effect: Due to the above noted condition, Friendship House Apartments, Inc. was not in compliance with this particular HUD compliance requirement. Recommendation: Friendship House Apartments, Inc. should ensure that a timely deposit is made, as required by HUD. Views of Responsible Officials: Friendship House Apartments, Inc. agrees with the audit finding and has written a correction action plan.
Finding 2022-001
Finding 2022-001: Deposit of Surplus Cash into a Residual Receipts Account Department of Housing and Urban Development (HUD) ? AL #14.181 Supportive Housing for Persons with Disabilities ? Capital Advance Questioned Costs: None Condition: Friendship House Apartments, Inc. had surplus cash of $30,525 on hand at September 30, 2021. Approval was obtained from HUD to utilize $25,200 of the surplus cash for heating and air conditioning units, leaving remaining surplus cash of $5,325. HUD approval was not received and the remaining surplus cash was not remitted within 90 days of year end. Criteria: The Consolidated Audit Guide for Audits of HUD Programs and the compliance requirements for AL #14.181 state that any surplus cash as calculated under HUD guidelines in the project funds account at the end of the fiscal year be deposited in a federally insured residual receipts account within 90 days following the end of the fiscal year. Cause: Friendship House Apartments, Inc. delayed remitting the surplus cash while it was waiting for approval from HUD to use the surplus cash for capital purchases. The approval was received after the 90 day remittance period. Effect: Due to the above noted condition, Friendship House Apartments, Inc. was not in compliance with this particular HUD compliance requirement. Recommendation: Friendship House Apartments, Inc. should ensure that a timely deposit is made, as required by HUD. Views of Responsible Officials: Friendship House Apartments, Inc. agrees with the audit finding and has written a correction action plan.