Audit 305768

FY End
2023-09-30
Total Expended
$1.17M
Findings
4
Programs
1
Organization: The Cottages at Beaufort, Inc. (GA)
Year: 2023 Accepted: 2024-05-08
Auditor: Aprio LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
396155 2023-001 - - C
396156 2023-001 - - C
972597 2023-001 - - C
972598 2023-001 - - C

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $94,724 Yes 1

Contacts

Name Title Type
Q8NKN3HL8CN7 Jill Cromartie Auditee
7702562259 Melissa Dunn Auditor
No contacts on file

Notes to SEFA

Title: 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 Circular A-122, "Cost Principles for Non-Profit Organizations" or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reiumbursement. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of The Cottages at Beaufort, Inc. under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of The Cottages at Beaufort, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of The Cottages at Beaufort, Inc.
Title: Summary Of Signficant Accounting Policies 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 Circular A-122, "Cost Principles for Non-Profit Organizations" or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reiumbursement. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations" or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost 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 Circular A-122, "Cost Principles for Non-Profit Organizations" or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reiumbursement. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. The Cottages at Beaufort, Inc. has not elected to use the 10% de minimus indirect cost rate allowed under Uniform Guidance.
Title: Section 202 Capital Advance 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 Circular A-122, "Cost Principles for Non-Profit Organizations" or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reiumbursement. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. The Cottages at Beaufort, Inc. has received a loan under the Section 202 Capital Advance program. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of loan outstanding as of September 30, 2023 is $1,071,400.

Finding Details

Finding Reference Number: 2023-01 Title and CFDA Number of Federal Program: Section 202 Capital Advance and Project Rental Assistance 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: n/a Criteria: The Corporation is required to fund $1,176 to the replacement reserve account monthly. Statement of Condition: For the year ended September 30, 2023, the Corporation only funded the replacement reserve for eleven months. Cause: Unintentional error. The funding was missed in September. Effect or Potential Effect: Required funding's were not made resulting in noncompliance with HUD regulations. Auditor Non-Compliance Code: N - Reserve for replacement deposits Questioned Costs: $1,176 Reportable Views of Responsible Officials: Management is in agreement with the finding and will make the required deposit. Context: n/a Recommendation: Management should review the policies and procedures surrounding replacement reserve deposits to ensure the required deposit is made monthly. There should be additional review, with an emphasis on comparing required funding's to funding's made. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Management will bolster policies around replacement reserve funding's to ensure required funding's are made. Response Indicator: Agree Completion Date: 9/30/2024 Response: Management has reviewed the policies and procedures surrounding replacement reserve deposits and will ensure personnel are trained to follow the policies and procedures. Management will review required funding's to funding's made and ensure there are no deficiencies. -
Finding Reference Number: 2023-01 Title and CFDA Number of Federal Program: Section 202 Capital Advance and Project Rental Assistance 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: n/a Criteria: The Corporation is required to fund $1,176 to the replacement reserve account monthly. Statement of Condition: For the year ended September 30, 2023, the Corporation only funded the replacement reserve for eleven months. Cause: Unintentional error. The funding was missed in September. Effect or Potential Effect: Required funding's were not made resulting in noncompliance with HUD regulations. Auditor Non-Compliance Code: N - Reserve for replacement deposits Questioned Costs: $1,176 Reportable Views of Responsible Officials: Management is in agreement with the finding and will make the required deposit. Context: n/a Recommendation: Management should review the policies and procedures surrounding replacement reserve deposits to ensure the required deposit is made monthly. There should be additional review, with an emphasis on comparing required funding's to funding's made. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Management will bolster policies around replacement reserve funding's to ensure required funding's are made. Response Indicator: Agree Completion Date: 9/30/2024 Response: Management has reviewed the policies and procedures surrounding replacement reserve deposits and will ensure personnel are trained to follow the policies and procedures. Management will review required funding's to funding's made and ensure there are no deficiencies. -
Finding Reference Number: 2023-01 Title and CFDA Number of Federal Program: Section 202 Capital Advance and Project Rental Assistance 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: n/a Criteria: The Corporation is required to fund $1,176 to the replacement reserve account monthly. Statement of Condition: For the year ended September 30, 2023, the Corporation only funded the replacement reserve for eleven months. Cause: Unintentional error. The funding was missed in September. Effect or Potential Effect: Required funding's were not made resulting in noncompliance with HUD regulations. Auditor Non-Compliance Code: N - Reserve for replacement deposits Questioned Costs: $1,176 Reportable Views of Responsible Officials: Management is in agreement with the finding and will make the required deposit. Context: n/a Recommendation: Management should review the policies and procedures surrounding replacement reserve deposits to ensure the required deposit is made monthly. There should be additional review, with an emphasis on comparing required funding's to funding's made. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Management will bolster policies around replacement reserve funding's to ensure required funding's are made. Response Indicator: Agree Completion Date: 9/30/2024 Response: Management has reviewed the policies and procedures surrounding replacement reserve deposits and will ensure personnel are trained to follow the policies and procedures. Management will review required funding's to funding's made and ensure there are no deficiencies. -
Finding Reference Number: 2023-01 Title and CFDA Number of Federal Program: Section 202 Capital Advance and Project Rental Assistance 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: n/a Criteria: The Corporation is required to fund $1,176 to the replacement reserve account monthly. Statement of Condition: For the year ended September 30, 2023, the Corporation only funded the replacement reserve for eleven months. Cause: Unintentional error. The funding was missed in September. Effect or Potential Effect: Required funding's were not made resulting in noncompliance with HUD regulations. Auditor Non-Compliance Code: N - Reserve for replacement deposits Questioned Costs: $1,176 Reportable Views of Responsible Officials: Management is in agreement with the finding and will make the required deposit. Context: n/a Recommendation: Management should review the policies and procedures surrounding replacement reserve deposits to ensure the required deposit is made monthly. There should be additional review, with an emphasis on comparing required funding's to funding's made. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Management will bolster policies around replacement reserve funding's to ensure required funding's are made. Response Indicator: Agree Completion Date: 9/30/2024 Response: Management has reviewed the policies and procedures surrounding replacement reserve deposits and will ensure personnel are trained to follow the policies and procedures. Management will review required funding's to funding's made and ensure there are no deficiencies. -