FAC Explorer

Audit 320977

FY End
2023-12-31
Total Expended
$1.44M
Findings
6
Programs
3
Organization: Joshua Manor (LA)
Year: 2023 Accepted: 2024-09-25
Auditor: Wharton CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498238 2023-001 Significant Deficiency - P
498239 2023-002 Significant Deficiency - P
498240 2023-003 Significant Deficiency - L
1074680 2023-001 Significant Deficiency - P
1074681 2023-002 Significant Deficiency - P
1074682 2023-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.21M Yes 3
14.195 Section 8 Housing Assistance Payments Program $213,388 - 0
14.191 Multifamily Housing Service Coordinators $20,413 - 0

Contacts

Name Title Type
SSG6H3BBF2M6 Willie Gable Auditee
5045245471 Brendel Wharton Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Summary of Significant Accounting Policies Accounting Policies: Basis of Presentation - This schedule includes the activity of NBC Housing, Inc. Eight, Joshua Manor 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Indirect Cost Rate – Joshua Manor did not use the de minimis cost rate. Loan/Loan Guarantee Outstanding Balance - Supportive Housing for the Elderly - Mortgage Payable - The balance outstanding at the end of the audit period was $1,208,568. De Minimis Rate Used: N Rate Explanation: Joshua Manor did not use the de minimis cost rate. Basis of Presentation - This schedule includes the activity of NBC Housing, Inc. Eight, Joshua Manor 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Indirect Cost Rate – Joshua Manor did not use the de minimis cost rate. Loan/Loan Guarantee Outstanding Balance - Supportive Housing for the Elderly - Mortgage Payable - The balance outstanding at the end of the audit period was $1,208,568.

Finding Details

Finding 2023-001
2023–1 Prior Year Audit Entries Not Posted Condition: Management failed to post prior year audit entries. Criteria: Agreed upon audit adjustments must be posted to the financial statements each year. Cause: The cause is undeterminable. Effect: The financial statement records did not contain all financial transactions of the property. Recommendation: I recommend management post audit entries to agree financial records to audit report.
Finding 2023-002
2023-2 Utility Accruals Not Properly Posted Condition: Management did not record utility accruals in the accounting records. Criteria: The accrual accounting method ensures transactions are recognized in the accounting period incurred, rather than paid, which follows the matching principle. Cause: The cause is undeterminable. Effect: Not recording accruals could have a material impact on both the balance sheet and the income statements. Recommendation: I recommend management post all accruals to properly reflect the financial position of the Project.
Finding 2023-003
2023-3 Late HUD Financial Reporting Condition: The owner did not meet the HUD financial reporting requirement. Criteria: According to HUD’s Uniform Financial Reporting Standards rule, annually, an owner is required to submit a financial statement, prepared in accordance with generally accepted accounting principles (GAAP), in the electronic format specified by HUD. The unaudited financial statement is due three months after the owner’s fiscal year end and the audited financial statement is due nine months after its fiscal year-end (24 CFR section 5.801). The financial statement must include the financial activities of this program. Cause: The cause is undeterminable. Effect: The Project is not compliant with HUD program requirements. Recommendation: I recommend the owner meet HUD program requirements.
Finding 2023-001
2023–1 Prior Year Audit Entries Not Posted Condition: Management failed to post prior year audit entries. Criteria: Agreed upon audit adjustments must be posted to the financial statements each year. Cause: The cause is undeterminable. Effect: The financial statement records did not contain all financial transactions of the property. Recommendation: I recommend management post audit entries to agree financial records to audit report.
Finding 2023-002
2023-2 Utility Accruals Not Properly Posted Condition: Management did not record utility accruals in the accounting records. Criteria: The accrual accounting method ensures transactions are recognized in the accounting period incurred, rather than paid, which follows the matching principle. Cause: The cause is undeterminable. Effect: Not recording accruals could have a material impact on both the balance sheet and the income statements. Recommendation: I recommend management post all accruals to properly reflect the financial position of the Project.
Finding 2023-003
2023-3 Late HUD Financial Reporting Condition: The owner did not meet the HUD financial reporting requirement. Criteria: According to HUD’s Uniform Financial Reporting Standards rule, annually, an owner is required to submit a financial statement, prepared in accordance with generally accepted accounting principles (GAAP), in the electronic format specified by HUD. The unaudited financial statement is due three months after the owner’s fiscal year end and the audited financial statement is due nine months after its fiscal year-end (24 CFR section 5.801). The financial statement must include the financial activities of this program. Cause: The cause is undeterminable. Effect: The Project is not compliant with HUD program requirements. Recommendation: I recommend the owner meet HUD program requirements.