FAC Explorer

Audit 25707

FY End
2022-06-30
Total Expended
$1.44M
Findings
2
Programs
2
Organization: Community Housing Services - Johansen, Inc. (UT)
Year: 2022 Accepted: 2022-10-17
Auditor: Fj & Associates PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
31014 2022-001 - - P
607456 2022-001 - - P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.37M Yes 1
14.195 Section 8 Housing Assistance Payments Program $79,755 - 0

Contacts

Name Title Type
FHDHJLF6HRF7 Phil Carroll Auditee
8013281050 Scott Farnes Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Scope of Audit Pursuant to Uniform Guidance The Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal awardprograms of the Organization. All federal awards received directly from federal agencies as well asfederal awards passed through other governmental agencies or other entities are included in the Schedule.The Project has elected not to use the 10 percent de minimis indirect cost rate allowed under the UniformGuidance. Basis of Presentation The Organizations Schedule of Expenditures of Federal Awards has been prepared using the same basisof accounting as the June 30, 2022 financial statements of the Organization. The Organization reports toHUD using the accrual basis of accounting. A complete description of the basis of accounting is includedin note 1 to those financial statements. Contingencies In connection with various federal grant programs, the Organization is obligated to administer relatedprograms and spend the funds in accordance with regulatory restrictions, and is subject to audit bygrantor agencies and other auditors. In cases of noncompliance, the agencies involved may require theOrganization to refund program funds. Loan Balance The end of the year loan balance for the Supportive Housing for the Elderly (Section 202) loan was$1,365,200. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Reserve Account Condition: The Project failed to make one of the required monthly deposits of $459 to the reserve account, leaving the reserve account underfunded by $459. Criteria: The section 202 loan provided by HUD requires that monthly deposits be made to the reserve account. Effect: The reserve account is underfunded by $459 as of June 30, 2022. Thus, necessary repairs and improvements may not be performed until the reserve is fully funded and/or is authorized by HUD. Cause: Management failed to deposit the funds as required since the Project?s financial position made it difficult to do so. Recommendation: Efforts should be made to make all required deposits to the reserve account. Auditee?s response: The missing payment was made in the subsequent period and the reserve account was fully funded as of 8/18/2022.chedule of
Finding 2022-001
Reserve Account Condition: The Project failed to make one of the required monthly deposits of $459 to the reserve account, leaving the reserve account underfunded by $459. Criteria: The section 202 loan provided by HUD requires that monthly deposits be made to the reserve account. Effect: The reserve account is underfunded by $459 as of June 30, 2022. Thus, necessary repairs and improvements may not be performed until the reserve is fully funded and/or is authorized by HUD. Cause: Management failed to deposit the funds as required since the Project?s financial position made it difficult to do so. Recommendation: Efforts should be made to make all required deposits to the reserve account. Auditee?s response: The missing payment was made in the subsequent period and the reserve account was fully funded as of 8/18/2022.chedule of