FAC Explorer

Audit 25681

FY End
2022-06-30
Total Expended
$3.19M
Findings
4
Programs
2
Organization: Jacksonville Gardens, Inc. (FL)
Year: 2022 Accepted: 2023-03-01
Auditor: Bellows Associates P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30729 2022-001 - - P
30730 2022-002 - - E
607171 2022-001 - - P
607172 2022-002 - - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Capital Advance $2.98M Yes 1
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contracts $213,521 Yes 1

Contacts

Name Title Type
J6L8EUE6CA78 Irene Phillips Auditee
9548359200 Jennifer R. Koffman Auditor
No contacts on file

Notes to SEFA

Title: NOTE C - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal grant activity ofJacksonville Gardens, Inc., operating as Worleys Place, HUD Project No. 082-EE156, and is presentedon the accrual basis of accounting. The information in this schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Because the Schedule presents only a selected portion of the operations of Jacksonville Gardens, Inc.,it is not intended to and does not present the financial position, changes in net assets, or cash flows ofJacksonville Gardens, Inc. NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: JacksonvilleGardens, Inc., has elected not to use the 10-percent de minimis indirect cost rate allowed under theUniform Guidance. Jacksonville Gardens, Inc., has received a HUD capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Jacksonville Gardens, Inc., received no additional loans during the year. The balance of the capital advance outstanding as of June 30, 2022 was $2,976,500.

Finding Details

Finding 2022-001
FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Notes payable. Sample Size Information: Notes payable. Identification of Repeat Finding and Finding Reference Number: No. Criteria: The financial records of the Project should reflect all financial activity occurring during the audit period. Statement of Condition: The note payable was forgiven during the audit period and was not reflected in the accounting records of the Project. Cause: Management was unaware of the note payable being forgiven during the audit period. Effect or Potential Effect: An overstatement of liabilities and an understatement of revenue. Auditor Non-Compliance Code: Z ? Other. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: Management should monitor the notes payable on the financial records of the Project and verify with the note issuer the status of the note payable on a regular basis. Response Indicator: Agree. Completion Date: 7/1/2022 Response: Accounting has established a policy where all long term liabilities will be monitored and confirmed on an annual basis.
Finding 2022-002
FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: 59 tenants. Sample Size Information: 10 tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires that upon receipt of an application for tenancy or assistance, the owner must indicate on the application the date and time received. Statement of Condition: Four applications for tenancy did not have any indication of the date and time received. Cause: The manager inadvertently excluded the date and time received on the application. Effect or Potential Effect: Unable to determine date and time for the receipt of the applications for proper wait listing placement and subsequent selection to occupy a unit. Auditor Non-Compliance Code: R ? Section 8 Program Admin. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure all applicant and tenant documentation is properly maintained. Response Indicator: Agree. Completion Date: 6/30/2023 Response: Management has provided additional training on HUD guidelines and established a compliance department that will conduct periodic file reviews.
Finding 2022-001
FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Notes payable. Sample Size Information: Notes payable. Identification of Repeat Finding and Finding Reference Number: No. Criteria: The financial records of the Project should reflect all financial activity occurring during the audit period. Statement of Condition: The note payable was forgiven during the audit period and was not reflected in the accounting records of the Project. Cause: Management was unaware of the note payable being forgiven during the audit period. Effect or Potential Effect: An overstatement of liabilities and an understatement of revenue. Auditor Non-Compliance Code: Z ? Other. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: Management should monitor the notes payable on the financial records of the Project and verify with the note issuer the status of the note payable on a regular basis. Response Indicator: Agree. Completion Date: 7/1/2022 Response: Accounting has established a policy where all long term liabilities will be monitored and confirmed on an annual basis.
Finding 2022-002
FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: 59 tenants. Sample Size Information: 10 tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires that upon receipt of an application for tenancy or assistance, the owner must indicate on the application the date and time received. Statement of Condition: Four applications for tenancy did not have any indication of the date and time received. Cause: The manager inadvertently excluded the date and time received on the application. Effect or Potential Effect: Unable to determine date and time for the receipt of the applications for proper wait listing placement and subsequent selection to occupy a unit. Auditor Non-Compliance Code: R ? Section 8 Program Admin. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure all applicant and tenant documentation is properly maintained. Response Indicator: Agree. Completion Date: 6/30/2023 Response: Management has provided additional training on HUD guidelines and established a compliance department that will conduct periodic file reviews.