FAC Explorer

Audit 323454

FY End
2023-12-31
Total Expended
$2.23M
Findings
4
Programs
1
Organization: Restart Housing Services, Inc. (MO)
Year: 2023 Accepted: 2024-10-01
Auditor: Cbiz CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
501191 2023-002 - - B
501192 2023-003 - - B
1077633 2023-002 - - B
1077634 2023-003 - - B

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $79,185 Yes 0

Contacts

Name Title Type
YZ5QMDM1UK16 Russ Petry Auditee
8168849163 Brent Wilson 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 the 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. ReStart Housing Services, Inc. has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Included in the schedule is a capital advance of $2,147,500 at December 31, 2023. De Minimis Rate Used: N Rate Explanation: ReStart Housing Services, Inc. has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of reStart Housing Services, Inc. (the “Organization”) 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 (the “Uniform Guidance”). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, change in net assets (deficit), or cash flows of the Organization.

Finding Details

Finding 2023-002
• Identification of the federal program AL #14.181, Department of Housing and Urban Development, Section 811 Capital Advance 2015 • Criteria The compliance supplement states that "Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interestbearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 (a)). All disbursements from the reserve must be approved by HUD (24 CFR section 891.405)." • Condition As of December 31, 2023 the account maintained at a federally insured depository is not interest bearing. • Cause The Project did not verify that the account was interest bearing at the time it was opened and has not corrected this error. • Effect or potential effect The Project is not in compliance with the requirements set forth by HUD related to its reserve for replacement account. • Questioned costs None • Identification as a repeat finding This is not a repeat finding. • Recommendation The Project should transfer its reserve for replacement balance to a new account within a federally insured financial institution which is interest bearing. • Views of responsible officials The Organization’s agrees with this finding and has implemented additional accounting policies and procedures, as well as staffing changes, in order to correct these issues. See the response included in the Corrective Action Plan.
Finding 2023-003
• Identification of the federal program AL #14.181, Department of Housing and Urban Development, Section 811 Capital Advance 2015 • Criteria The compliance supplement states that "Surplus cash available at the end of the annual reporting period is to be deposited into a Residual Receipts account within sixty (60) days. Surplus cash is determined by completion of a Computation of Surplus Cash. (Chapter 2 of HUD Handbook 4370.2, Financial Operations and Accounting Procedures for Insured Multifamily Projects.) Withdrawals from this account require HUD approval." • Condition As of the audit issuance date, the December 31, 2023 the computed surplus cash amount has not been deposited into a residual receipts reserve. • Cause The Project did not calculate the surplus cash timely in order to determine the amount which should have been deposited into a residual receipts account. • Effect or potential effect The Project is not in compliance with the requirements set forth by HUD related to its cash surplus. • Questioned costs None • Identification as a repeat finding This is not a repeat finding. • Recommendation The Project should deposit the cash surplus amount into the residual receipts account. • Views of responsible officials The Organization’s agrees with this finding and has implemented additional accounting policies and procedures, as well as staffing changes, in order to correct these issues. See the response included in the Corrective Action Plan.
Finding 2023-002
• Identification of the federal program AL #14.181, Department of Housing and Urban Development, Section 811 Capital Advance 2015 • Criteria The compliance supplement states that "Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interestbearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 (a)). All disbursements from the reserve must be approved by HUD (24 CFR section 891.405)." • Condition As of December 31, 2023 the account maintained at a federally insured depository is not interest bearing. • Cause The Project did not verify that the account was interest bearing at the time it was opened and has not corrected this error. • Effect or potential effect The Project is not in compliance with the requirements set forth by HUD related to its reserve for replacement account. • Questioned costs None • Identification as a repeat finding This is not a repeat finding. • Recommendation The Project should transfer its reserve for replacement balance to a new account within a federally insured financial institution which is interest bearing. • Views of responsible officials The Organization’s agrees with this finding and has implemented additional accounting policies and procedures, as well as staffing changes, in order to correct these issues. See the response included in the Corrective Action Plan.
Finding 2023-003
• Identification of the federal program AL #14.181, Department of Housing and Urban Development, Section 811 Capital Advance 2015 • Criteria The compliance supplement states that "Surplus cash available at the end of the annual reporting period is to be deposited into a Residual Receipts account within sixty (60) days. Surplus cash is determined by completion of a Computation of Surplus Cash. (Chapter 2 of HUD Handbook 4370.2, Financial Operations and Accounting Procedures for Insured Multifamily Projects.) Withdrawals from this account require HUD approval." • Condition As of the audit issuance date, the December 31, 2023 the computed surplus cash amount has not been deposited into a residual receipts reserve. • Cause The Project did not calculate the surplus cash timely in order to determine the amount which should have been deposited into a residual receipts account. • Effect or potential effect The Project is not in compliance with the requirements set forth by HUD related to its cash surplus. • Questioned costs None • Identification as a repeat finding This is not a repeat finding. • Recommendation The Project should deposit the cash surplus amount into the residual receipts account. • Views of responsible officials The Organization’s agrees with this finding and has implemented additional accounting policies and procedures, as well as staffing changes, in order to correct these issues. See the response included in the Corrective Action Plan.