FAC Explorer

Finding 10402 (2023-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
$1
Year
2023
Accepted
2024-01-29
Audit: 14064
Organization: First Baptist Church Capitol Hill Homes, Inc. D/b/a Kelly Miller Smith Towers (TN)
Auditor: Tabb & Tabb LLC

AI Summary

  • Core Issue: Required Single Audits were not submitted to the Federal Audit Clearinghouse on time for fiscal years 2016-2020.
  • Impacted Requirements: Non-profit grant recipients must submit audits within 30 days of receiving reports or 9 months after the audit period ends.
  • Recommended Follow-Up: Complete and submit the overdue Single Audits promptly to ensure compliance.

Finding Text

Department of Housing and Urban Development (HUD): Section 223 (F) Loan – Federal Assistance Listing # 14.155 Section 8 Housing Assistance Payments – Federal Assistance Listing # 14.195 Reporting Statement of Condition: The required Single Audits were not remitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days after the the receipted of the auditors' reports or 9 months after the end of the audit periods for the fiscal years ended April 30, 2016 - April 30, 2020. Criteria: Non-profit grant recipients that expend $750,000 or more in federal awards in a fiscal year must have a single audit conducted in accordance with 45 CFR Part 75, Subpart F and submit the related audit reports electronically to the FAC within the specified time frame. Effect of Condition: The property is not in compliance with federal regulations relating to the reporting requirements and the submission of Single Audits to the FAC. Cause of Condition: Remitting and certifying Single Audit Reporting Packages to the Federal Audit Clearinghouse is the joint responsibility of the auditee and the independent auditor. Both parties must sign off on the submission. Neither the auditee nor the auditor initiated a submission. Recommendation: We recommend that the required delinquent submissions of Single Audits be completed as soon as possible.

Corrective Action Plan

Auditee Response: The Board of Directors and management worked with the auditors to submit and certify to the FAC the Single Audit Reporting Packages for the years ended April 30, 2022 and 2021. This was completed on July 31, 2023. The Audit Committee of the Board of Directors will insure that future Single Audit Reporting Packages for the year ending April 30, 2023 and beyond with be remitted in accordance with federal regulations. The Board of Directors and management will work with the prior auditors to insure that missing FAC submissions for the years ended April 30, 2020 and prior will be submitted and certified as applicable and in accordance with federal regulation.

Categories

Questioned Costs HUD Housing Programs Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 10403 2023-001
    Material Weakness Repeat
  • 586844 2023-001
    Material Weakness Repeat
  • 586845 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $4.27M
14.195 Section 8 Housing Assistance Payments Program $931,466
14.191 Multifamily Housing Service Coordinators $60,610