Audit 315100

FY End
2023-12-31
Total Expended
$4.00M
Findings
4
Programs
1
Organization: Johnnie B. Moore Towers, Inc. (GA)
Year: 2023 Accepted: 2024-07-15
Auditor: Aprio LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
478408 2023-002 Significant Deficiency - N
478409 2023-003 Significant Deficiency - N
1054850 2023-002 Significant Deficiency - N
1054851 2023-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $459,416 Yes 1

Contacts

Name Title Type
YLRLLTMDUP19 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 reimbursement. 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 award activity of Johnnie B. Moore Towers, Inc. under programs of the federal government for the year ended December 31, 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 Johnnie B. Moore Towers, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Johnnie B. Moore Towers, Inc.
Title: Summary of Significant 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 reimbursement. 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 Costs 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 reimbursement. 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. Johnnie B. Moore Towers, Inc. has elected not 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 reimbursement. 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. Johnnie B. Moore Towers, Inc.'s has received a direct 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 the loans outstanding as of December 31, 2023, is $3,535,800

Finding Details

Finding Reference Number: 2023-02 Title and Federal Assistance Listing Number of Federal Program: Section 202 Capital Advance and PRAC, 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: Not applicable Criteria: In accordance with HUD regulations, entities should not make unauthorized distributions of project funds. Statement of Condition: The project paid expenses for an adjacent property. Cause: The Corporation paid non-project expenses from Project funds. Effect or Potential Effect: The Project is noncompliant with the HUD regulatory agreement. Auditor Non-Compliance Code: H - Unauthorized Distribution of Project Funds Questioned Costs: $899 Reportable Views of Responsible Officials: We agree that the Corporation paid amounts from Project funds for non-project expenses. Context: Not applicable Recommendation: Expense allocations should be closely monitored to ensure Project funds are not used for nonproject expenses. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Agree with management's assessment. Response Indicator: Agree Completion Date: 12/31/2024
Finding Reference Number: 2023-03 Title and Federal Assistance Listing Number of Federal Program: Section 202 Capital Advance and PRAC, 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: Not applicable Criteria: The HUD Handbook states that management agents are required to have fidelity bond insurance of two months gross rent or $50,000, whichever is greater. Statement of Condition: The fidelity bond policy lapsed during the year. Cause: The renewal of the policy was not completed in a timely manner resulting in a lapse of coverage. Effect or Potential Effect: The Project is noncompliant with the HUD regulatory agreement. Auditor Non-Compliance Code: Z Questioned Costs: $- Reportable Views of Responsible Officials: Management is in agreement with the finding and will adhere to the requirements set forth in the HUD Handbook going forward and reinstate the fidelity bond insurance policy in accordance with HUD regulations. Context: Not applicable Recommendation: The policy should be renewed in a timely manner to ensure no lapses in coverage. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Agree with management's assessment. Response Indicator: Agree Completion Date: 12/31/2024
Finding Reference Number: 2023-02 Title and Federal Assistance Listing Number of Federal Program: Section 202 Capital Advance and PRAC, 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: Not applicable Criteria: In accordance with HUD regulations, entities should not make unauthorized distributions of project funds. Statement of Condition: The project paid expenses for an adjacent property. Cause: The Corporation paid non-project expenses from Project funds. Effect or Potential Effect: The Project is noncompliant with the HUD regulatory agreement. Auditor Non-Compliance Code: H - Unauthorized Distribution of Project Funds Questioned Costs: $899 Reportable Views of Responsible Officials: We agree that the Corporation paid amounts from Project funds for non-project expenses. Context: Not applicable Recommendation: Expense allocations should be closely monitored to ensure Project funds are not used for nonproject expenses. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Agree with management's assessment. Response Indicator: Agree Completion Date: 12/31/2024
Finding Reference Number: 2023-03 Title and Federal Assistance Listing Number of Federal Program: Section 202 Capital Advance and PRAC, 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: Not applicable Criteria: The HUD Handbook states that management agents are required to have fidelity bond insurance of two months gross rent or $50,000, whichever is greater. Statement of Condition: The fidelity bond policy lapsed during the year. Cause: The renewal of the policy was not completed in a timely manner resulting in a lapse of coverage. Effect or Potential Effect: The Project is noncompliant with the HUD regulatory agreement. Auditor Non-Compliance Code: Z Questioned Costs: $- Reportable Views of Responsible Officials: Management is in agreement with the finding and will adhere to the requirements set forth in the HUD Handbook going forward and reinstate the fidelity bond insurance policy in accordance with HUD regulations. Context: Not applicable Recommendation: The policy should be renewed in a timely manner to ensure no lapses in coverage. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Agree with management's assessment. Response Indicator: Agree Completion Date: 12/31/2024