Audit 317905

FY End
2023-12-31
Total Expended
$5.17M
Findings
4
Programs
1
Year: 2023 Accepted: 2024-08-26
Auditor: Aprio LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
485121 2023-001 Significant Deficiency - N
485122 2023-001 Significant Deficiency - N
1061563 2023-001 Significant Deficiency - N
1061564 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $385,449 Yes 1

Contacts

Name Title Type
JFYTB5JGFNE5 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 reimbursment. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimuss indirect cost rate allowed under 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 II., it is not intended to and does not present the financial position, changes in net assets or cash flows of Johnnie B. Moore Towers II, Inc.
Title: Summary of Significany 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 reimbursment. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimuss indirect cost rate allowed under 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 reimbursment.
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 reimbursment. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimuss indirect cost rate allowed under Uniform Guidance. Johnnie B. Moore Towers II, 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 reimbursment. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimuss indirect cost rate allowed under Uniform Guidance. Johnnie B. Moore Towers II, Inc.'s has received a direct loan under the Section202 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 $4,780,100.

Finding Details

Finding Reference Number: 2023-1 Title and Federal Assistance Listing Number of Federal Program: Section 202 Capital Advance and Project Assistance Rental #14.157 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Information on Universe Population Size: Not Applicable Sample Size Information: Not Applicable Identification of Repeat Finding and Finding Reference Number: Not Applicable Criteria: Monthly deposits to the replacement reserve are required in the amount of $3,844. Statement of Condition: During the year ended December 31, 2023, the required replacement reserve deposits were not made. Cause: HUD increased the replacement reserve requirement in December 2022, the Project did not make the change until September 2023. Effect or Potential Effect: Noncompliance with Regulatory Agreement. Auditor Non-Compliance Code: N - Reserve for replacement deposits Questioned Costs: $19,078 Reportable Views of Responsible Officials: Management is in agreement with the finding, and will make required deposits to the replacement reserve. Context: Not Applicable Recommendation: Management should review procedures surrounding monthly replacement reserve deposits and ensure amounts deposited match the amounts required by HUD. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Management will be more diligent about ensuring the accuracy of replacement reserve deposits in the future. Response Indicator: Agree Status Indicator: Not Cleared. Response: Management has updated the deposit amounts as of September 2023 and will make an additional deposit for the underfunding that occured December 2022 through August 2023.
Finding Reference Number: 2023-1 Title and Federal Assistance Listing Number of Federal Program: Section 202 Capital Advance and Project Assistance Rental #14.157 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Information on Universe Population Size: Not Applicable Sample Size Information: Not Applicable Identification of Repeat Finding and Finding Reference Number: Not Applicable Criteria: Monthly deposits to the replacement reserve are required in the amount of $3,844. Statement of Condition: During the year ended December 31, 2023, the required replacement reserve deposits were not made. Cause: HUD increased the replacement reserve requirement in December 2022, the Project did not make the change until September 2023. Effect or Potential Effect: Noncompliance with Regulatory Agreement. Auditor Non-Compliance Code: N - Reserve for replacement deposits Questioned Costs: $19,078 Reportable Views of Responsible Officials: Management is in agreement with the finding, and will make required deposits to the replacement reserve. Context: Not Applicable Recommendation: Management should review procedures surrounding monthly replacement reserve deposits and ensure amounts deposited match the amounts required by HUD. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Management will be more diligent about ensuring the accuracy of replacement reserve deposits in the future. Response Indicator: Agree Status Indicator: Not Cleared. Response: Management has updated the deposit amounts as of September 2023 and will make an additional deposit for the underfunding that occured December 2022 through August 2023.
Finding Reference Number: 2023-1 Title and Federal Assistance Listing Number of Federal Program: Section 202 Capital Advance and Project Assistance Rental #14.157 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Information on Universe Population Size: Not Applicable Sample Size Information: Not Applicable Identification of Repeat Finding and Finding Reference Number: Not Applicable Criteria: Monthly deposits to the replacement reserve are required in the amount of $3,844. Statement of Condition: During the year ended December 31, 2023, the required replacement reserve deposits were not made. Cause: HUD increased the replacement reserve requirement in December 2022, the Project did not make the change until September 2023. Effect or Potential Effect: Noncompliance with Regulatory Agreement. Auditor Non-Compliance Code: N - Reserve for replacement deposits Questioned Costs: $19,078 Reportable Views of Responsible Officials: Management is in agreement with the finding, and will make required deposits to the replacement reserve. Context: Not Applicable Recommendation: Management should review procedures surrounding monthly replacement reserve deposits and ensure amounts deposited match the amounts required by HUD. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Management will be more diligent about ensuring the accuracy of replacement reserve deposits in the future. Response Indicator: Agree Status Indicator: Not Cleared. Response: Management has updated the deposit amounts as of September 2023 and will make an additional deposit for the underfunding that occured December 2022 through August 2023.
Finding Reference Number: 2023-1 Title and Federal Assistance Listing Number of Federal Program: Section 202 Capital Advance and Project Assistance Rental #14.157 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Information on Universe Population Size: Not Applicable Sample Size Information: Not Applicable Identification of Repeat Finding and Finding Reference Number: Not Applicable Criteria: Monthly deposits to the replacement reserve are required in the amount of $3,844. Statement of Condition: During the year ended December 31, 2023, the required replacement reserve deposits were not made. Cause: HUD increased the replacement reserve requirement in December 2022, the Project did not make the change until September 2023. Effect or Potential Effect: Noncompliance with Regulatory Agreement. Auditor Non-Compliance Code: N - Reserve for replacement deposits Questioned Costs: $19,078 Reportable Views of Responsible Officials: Management is in agreement with the finding, and will make required deposits to the replacement reserve. Context: Not Applicable Recommendation: Management should review procedures surrounding monthly replacement reserve deposits and ensure amounts deposited match the amounts required by HUD. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Management will be more diligent about ensuring the accuracy of replacement reserve deposits in the future. Response Indicator: Agree Status Indicator: Not Cleared. Response: Management has updated the deposit amounts as of September 2023 and will make an additional deposit for the underfunding that occured December 2022 through August 2023.