Finding 33146 (2022-002)

Significant Deficiency
Requirement
Allowable Costs/Cost Principles
Questioned Costs
-
Year
2022
Accepted
2022-12-12
Audit: 28979
Organization: Susanne Corporation (MO)
Auditor: Kpm CPAS PC

AI Summary

  • Core Issue: Susanne Corporation lacks written procedures for cash management and allowable costs, violating Uniform Guidance requirements.
  • Impacted Requirements: Non-compliance with 2 CFR 200.302(b)(6) and 2 CFR 200.302(b)(7) could lead to improper transactions.
  • Recommended Follow-Up: Draft and adopt necessary written procedures to ensure compliance with Uniform Guidance.

Finding Text

Significant Deficiency 2022-002 Written Uniform Guidance Policies and Procedures Federal Program: U.S. Department of Housing and Urban Development Federal Assistance Listing 14.155 ? Section 207-223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multi-Family Projects Criteria: Uniform Guidance requires written procedures for cash management and determining the allowability of costs in accordance with Subpart E ? Cost Principals. Condition: Susanne Corporation did not have written procedures for cash management (2 CFR 200.302(b)(6)) and allowable costs determination (2 CFR 200.302(b)(7)) in accordance with Uniform Guidance requirements. Questioned Costs: $0 Cause: Susanne Corporation?s written policies and procedures were not updated to include required Uniform Guidance policies. Effect: Employees of Susanne Corporation could enter into a transaction that is not in compliance with Uniform Guidance requirements. Recommendation: We recommend Susanne Corporation should draft and adopt written procedures in accordance with Uniform Guidance requirements. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and is in the process of drafting and implementing written procedures for cash management and determining the allowability of costs in accordance with Subpart E ? Cost Principals.

Corrective Action Plan

U.S. Department of Housing and Urban Development Susanne Corporation respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: KPM CPAs, PC 1445 E Republic Road Springfield, Missouri 65804 Audit period: July 1, 2021 through June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings ? Financial Statement Audit Significant Deficiency 2022-001 Financial Reporting Recommendation: Management should review and update monthly and year-end closing procedures to ensure controls over financial reporting are sufficient for financial statements to be prepared in accordance with accounting principles generally accepted in the United States of America. Action Taken: Management agrees with the finding and year end closing procedures will be changed to reflect appropriate accounting principles. Findings ? Major Federal Award Program Audit Significant Deficiency 2022-002 Written Uniform Guidance Policies and Procedures Recommendation: We recommend Susanne Corporation draft and adopt written procedures in accordance with Uniform Guidance requirements. Action Taken: Management agrees with the finding and is in the process of drafting and implementing written procedures for cash management and determining the allowability of costs in accordance with Subpart E ? Cost Principals. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Joey Wilke at 417-366-3440.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 609588 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $662,293
14.195 Section 8 Housing Assistance Payments Program $142,020