Audit 292452

FY End

2022-09-30

Total Expended

$4.37M

Findings

4

Programs

2

Organization: Levi Towers, Inc. (AR)

Year: 2022 Accepted: 2024-02-27

Auditor: Ata PLLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
370787	2022-001	-	-	L
370788	2022-002	-	-	N
947229	2022-001	-	-	L
947230	2022-002	-	-	N

ALN	Program	Spent	Major	Findings
14.155	Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects	$3.55M	Yes	2
14.195	Section 8 Housing Assistance Payments Program	$821,034	-	0

Contacts

Name	Title	Type
DTLFLQXFSNK1	David Wilson	Auditee
5016223199	Courtney Moore	Auditor
No contacts on file

Notes to SEFA

Title: Note 2 - Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Title 2 U.S. Code of Federal Regulations, (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards, Circular A-122, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Auditee uses actual indirect costs. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Project, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operation of the Project, it is not intended to and does not present the financial position, changes in net assets, cash flows of the Project.

Title: Note 3 - Loan Guarantee Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Title 2 U.S. Code of Federal Regulations, (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards, Circular A-122, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Auditee uses actual indirect costs. The balance on the mortgage guaranteed by HUD at September 30, 2022 was $3,372,684.

Title: Note 4 - Federal Indirect Rate Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Title 2 U.S. Code of Federal Regulations, (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards, Circular A-122, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Auditee uses actual indirect costs. The Project has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-001

Reference Number: 2022-01 Finding: Single Audit Data Collection Form Not Filed by Due Date Category of Finding: Reporting Condition: The data collection form for the Single Audit ended September 30, 2022, was not submitted to the Federal Clearing House by June 30, 2023. The data collection form for the Single Audit ended September 30, 2021 was not submitted to the Federal Audit Clearinghouse by June 30, 2022. Criteria: 2 CFR section 200.512 (b) provides for a form, referred to as the data collection form, to be prepared at the completion of each audit and submitted by the auditee to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period. Cause: The audit report for the year ended September 30, 2022 was not issued prior to the June 30, 2023 submission deadline. The Single Audit for the year ended September 30, 2021 was not submitted by the deadline. Therefore, the data collection forms required at audit completion was not filed by the due dates. Effect: Levi Towers, Inc. (the “Project”) has not met the reporting requirement related to timely submission of the data collection form required for a Single Audit. Therefore, per 2 CFR section 200.520, the Project will not meet the low-risk auditee criteria for further Single Audits that requires submission of the data collection form and reporting package by the due date for each of the two preceding audit years. Questioned Costs: NoneRecommendation: We recommend the Project develop specific procedures to ensure that the audit report is received prior to the June 30 the reporting deadline. Management Response: The Data Collection Form will be filed when the audit is complete.

Finding 2022-002

Reference Number: 2022-02 Finding: Surplus Cash Not Deposited By Due Date Category of Finding: Special Tests and Provisions Condition: The surplus cash for the year ended September 30, 2022 was not deposited into the residual receipts account by the deadline of December 31, 2022, which is 90 days after year end. Criteria: The regulatory agreement requires that surplus cash at the end of the year must be deposited into the residual receipts account on or before 90 days after the year end. Cause: The audit report for the year ended September 30, 2022 was not completed by the deadline and surplus cash at year end had not been calculated. Therefore, the surplus cash deposit was not made by the due date. Effect: Levi Towers, Inc. (the “Project”) has not met the requirement related to timely deposit of surplus cash and is not in compliance with the regulatory agreement. Questioned Costs: None Recommendation: We recommend the Project develop specific procedures to ensure that surplus cash is calculated and deposited into the residual receipts account within 90 days of the year end. Management Response: Management will develop procedures to ensure that surplus cash is deposited by the deadline

Finding 2022-001

Reference Number: 2022-01 Finding: Single Audit Data Collection Form Not Filed by Due Date Category of Finding: Reporting Condition: The data collection form for the Single Audit ended September 30, 2022, was not submitted to the Federal Clearing House by June 30, 2023. The data collection form for the Single Audit ended September 30, 2021 was not submitted to the Federal Audit Clearinghouse by June 30, 2022. Criteria: 2 CFR section 200.512 (b) provides for a form, referred to as the data collection form, to be prepared at the completion of each audit and submitted by the auditee to the Federal Audit Clearinghouse the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period. Cause: The audit report for the year ended September 30, 2022 was not issued prior to the June 30, 2023 submission deadline. The Single Audit for the year ended September 30, 2021 was not submitted by the deadline. Therefore, the data collection forms required at audit completion was not filed by the due dates. Effect: Levi Towers, Inc. (the “Project”) has not met the reporting requirement related to timely submission of the data collection form required for a Single Audit. Therefore, per 2 CFR section 200.520, the Project will not meet the low-risk auditee criteria for further Single Audits that requires submission of the data collection form and reporting package by the due date for each of the two preceding audit years. Questioned Costs: NoneRecommendation: We recommend the Project develop specific procedures to ensure that the audit report is received prior to the June 30 the reporting deadline. Management Response: The Data Collection Form will be filed when the audit is complete.

Finding 2022-002

Reference Number: 2022-02 Finding: Surplus Cash Not Deposited By Due Date Category of Finding: Special Tests and Provisions Condition: The surplus cash for the year ended September 30, 2022 was not deposited into the residual receipts account by the deadline of December 31, 2022, which is 90 days after year end. Criteria: The regulatory agreement requires that surplus cash at the end of the year must be deposited into the residual receipts account on or before 90 days after the year end. Cause: The audit report for the year ended September 30, 2022 was not completed by the deadline and surplus cash at year end had not been calculated. Therefore, the surplus cash deposit was not made by the due date. Effect: Levi Towers, Inc. (the “Project”) has not met the requirement related to timely deposit of surplus cash and is not in compliance with the regulatory agreement. Questioned Costs: None Recommendation: We recommend the Project develop specific procedures to ensure that surplus cash is calculated and deposited into the residual receipts account within 90 days of the year end. Management Response: Management will develop procedures to ensure that surplus cash is deposited by the deadline