FAC Explorer

Audit 30830

FY End
2022-06-30
Total Expended
$978,312
Findings
2
Programs
1
Organization: Crowhaven Apartments, Inc. (MO)
Year: 2022 Accepted: 2022-10-25
Auditor: Kpm CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30180 2022-001 Significant Deficiency - N
606622 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $957,700 Yes 1

Contacts

Name Title Type
TBM4NNNUCBH3 John Everest Auditee
4178647887 Barbara Houser Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances 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 the Uniform Guidance, and/or OMB Circular A-122, Cost Principles for Non-profit Organization, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Crowhaven Apartments, Inc. has received a loan under Section 223(a)(7) of the National Housing Act and regulated by the U. S. Department of Housing and Urban Development (HUD). The loan balance outstanding at the beginning of the year is $957,700included in the federal expenditures presented in the Schedule. The Project received no additional loans during the year. The balance of the loan outstanding at June 30, 2022 is $957,700.
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 the Uniform Guidance, and/or OMB Circular A-122, Cost Principles for Non-profit Organization, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Crowhaven Apartments, Inc., HUD Project No. 084-HD026-WDD, 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 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 Crowhaven Apartments, Inc., HUD Project No. 084-HD026-WDD, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Crowhaven Apartments, Inc., HUD Project No. 084-HD026-WDD.
Title: Subrecipients 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 the Uniform Guidance, and/or OMB Circular A-122, Cost Principles for Non-profit Organization, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Crowhaven Apartments, Inc. did not provide funds to sub-recipients in the current year

Finding Details

Finding 2022-001
2022-001 Timely Deposit of Surplus Cash U.S. Department of Housing and Urban Development Federal Assistance Listing 14.181 ? Supportive Housing for Persons with Disabilities Criteria: HUD Handbook 4370.2, Financial Operations and Accounting Procedures for Insured Multifamily Projects, states that the regulatory agreement required that all surplus cash available at the end of the annual fiscal period to be deposited in the residual receipts account within 60 days after the end of the fiscal year. Condition: Prior year surplus cash was not deposited into the residual receipts account on a timely basis. Questioned Costs: $0 Cause: Crowhaven Apartments, Inc. was aware of the requirement but management oversight resulted in the failure to separately deposit these funds. Effect: Surplus cash deposits into the residual receipts account were delinquent in accordance with HUD requirements. Recommendation: We recommend Crowhaven Apartments, Inc. establish procedures to ensure that required deposits of surplus cash are made on a timely basis after the fiscal year end. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and is in the process of incorporating procedures to ensure that all required surplus cash deposits are made timely. The required deposit was made February 2022.
Finding 2022-001
2022-001 Timely Deposit of Surplus Cash U.S. Department of Housing and Urban Development Federal Assistance Listing 14.181 ? Supportive Housing for Persons with Disabilities Criteria: HUD Handbook 4370.2, Financial Operations and Accounting Procedures for Insured Multifamily Projects, states that the regulatory agreement required that all surplus cash available at the end of the annual fiscal period to be deposited in the residual receipts account within 60 days after the end of the fiscal year. Condition: Prior year surplus cash was not deposited into the residual receipts account on a timely basis. Questioned Costs: $0 Cause: Crowhaven Apartments, Inc. was aware of the requirement but management oversight resulted in the failure to separately deposit these funds. Effect: Surplus cash deposits into the residual receipts account were delinquent in accordance with HUD requirements. Recommendation: We recommend Crowhaven Apartments, Inc. establish procedures to ensure that required deposits of surplus cash are made on a timely basis after the fiscal year end. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and is in the process of incorporating procedures to ensure that all required surplus cash deposits are made timely. The required deposit was made February 2022.