FAC Explorer

Audit 311944

FY End
2022-12-31
Total Expended
$5.19M
Findings
4
Programs
2
Organization: Destiny Towers, INC (MO)
Year: 2022 Accepted: 2023-08-27
Auditor: Ralph C Johnson & CO PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
409821 2022-001 - - C
409822 2022-001 - Yes C
986263 2022-001 - - C
986264 2022-001 - Yes C

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $4.92M Yes 2
14.195 Section 8 Housing Assistance Payments Program $273,527 - 0

Contacts

Name Title Type
UZWMBQKCVML6 Fred Gibbs Auditee
8168414898 Ralph C. Johnson Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A - BASIS PRESENTATIONThe above schedule of expenditures of federal awards includes the federal activity of Destiny Towers, HUD Project No. 084-EH072, 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 for Federal Awards (Uniform Guidance). Therefore, some of the amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of the basic financial statements.NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported in the Schedule of Expenditures of Federal Awards are reported based upon generally accepted accounting principles of the United States of America.NOTE C - SUB-RECIPIENTSThere were no sub-recipients of Destiny Towers.NOTE D - INDIRECT COST RATEDestiny Towers has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 4918487.

Finding Details

Finding 2022-001
Program: Assistance Listing Number ? 14.157Section 202 Insured MortgageCFDA# and Program Expenditures 14.157 ($4,918,487)Award number NoneFederal Award Year January 1, 2021 to December 31, 2021Questioned Costs $28,068Criteria: The Regulatory Agreement, Housing for Elderly or Handicapped (Nonprofit) Section 202 of the Housing Act of 1959, in essence, stipulates that the Mortgagor will establish and maintain a reserve fund for replacement in a separate account in a bank which is insured by the Federal Deposit Insurance Corporation. The Mortgagor will deposit an amount which is stipulated by HUD monthly unless a different amount and date is approved in writing by HUD.Condition: During our testing, we noted that the Project failed to make the required monthly deposits into the reserve for replacement for the year 2022. This is a repeat finding from the last four (4) years.Effect: The Project failed to make deposits to the reserve for replacement account as required by the Regulatory Agreement.Cause: Management indicated that the required monthly deposits to the reserve for replacement account were not made timely because of delays in receiving HUD rent payments.Recommendation: The Project should seek a waiver from HUD to suspend the required monthly reserve for replacement deposits or request a modification of the required monthly deposit amount.
Finding 2022-001
Program: Assistance Listing Number ? 14.157Section 202 Insured MortgageCFDA# and Program Expenditures 14.157 ($4,918,487)Award number NoneFederal Award Year January 1, 2021 to December 31, 2021Questioned Costs $28,068Criteria: The Regulatory Agreement, Housing for Elderly or Handicapped (Nonprofit) Section 202 of the Housing Act of 1959, in essence, stipulates that the Mortgagor will establish and maintain a reserve fund for replacement in a separate account in a bank which is insured by the Federal Deposit Insurance Corporation. The Mortgagor will deposit an amount which is stipulated by HUD monthly unless a different amount and date is approved in writing by HUD.Condition: During our testing, we noted that the Project failed to make the required monthly deposits into the reserve for replacement for the year 2022. This is a repeat finding from the last four (4) years.Effect: The Project failed to make deposits to the reserve for replacement account as required by the Regulatory Agreement.Cause: Management indicated that the required monthly deposits to the reserve for replacement account were not made timely because of delays in receiving HUD rent payments.Recommendation: The Project should seek a waiver from HUD to suspend the required monthly reserve for replacement deposits or request a modification of the required monthly deposit amount.
Finding 2022-001
Program: Assistance Listing Number ? 14.157Section 202 Insured MortgageCFDA# and Program Expenditures 14.157 ($4,918,487)Award number NoneFederal Award Year January 1, 2021 to December 31, 2021Questioned Costs $28,068Criteria: The Regulatory Agreement, Housing for Elderly or Handicapped (Nonprofit) Section 202 of the Housing Act of 1959, in essence, stipulates that the Mortgagor will establish and maintain a reserve fund for replacement in a separate account in a bank which is insured by the Federal Deposit Insurance Corporation. The Mortgagor will deposit an amount which is stipulated by HUD monthly unless a different amount and date is approved in writing by HUD.Condition: During our testing, we noted that the Project failed to make the required monthly deposits into the reserve for replacement for the year 2022. This is a repeat finding from the last four (4) years.Effect: The Project failed to make deposits to the reserve for replacement account as required by the Regulatory Agreement.Cause: Management indicated that the required monthly deposits to the reserve for replacement account were not made timely because of delays in receiving HUD rent payments.Recommendation: The Project should seek a waiver from HUD to suspend the required monthly reserve for replacement deposits or request a modification of the required monthly deposit amount.
Finding 2022-001
Program: Assistance Listing Number ? 14.157Section 202 Insured MortgageCFDA# and Program Expenditures 14.157 ($4,918,487)Award number NoneFederal Award Year January 1, 2021 to December 31, 2021Questioned Costs $28,068Criteria: The Regulatory Agreement, Housing for Elderly or Handicapped (Nonprofit) Section 202 of the Housing Act of 1959, in essence, stipulates that the Mortgagor will establish and maintain a reserve fund for replacement in a separate account in a bank which is insured by the Federal Deposit Insurance Corporation. The Mortgagor will deposit an amount which is stipulated by HUD monthly unless a different amount and date is approved in writing by HUD.Condition: During our testing, we noted that the Project failed to make the required monthly deposits into the reserve for replacement for the year 2022. This is a repeat finding from the last four (4) years.Effect: The Project failed to make deposits to the reserve for replacement account as required by the Regulatory Agreement.Cause: Management indicated that the required monthly deposits to the reserve for replacement account were not made timely because of delays in receiving HUD rent payments.Recommendation: The Project should seek a waiver from HUD to suspend the required monthly reserve for replacement deposits or request a modification of the required monthly deposit amount.