FAC Explorer

Audit 326357

FY End
2024-06-30
Total Expended
$1.26M
Findings
8
Programs
1
Organization: Duck River Apartments, Inc. (TN)
Year: 2024 Accepted: 2024-10-29
Auditor: Tarwater & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
503986 2024-001 - - C
503987 2024-001 - - C
503988 2024-002 - - C
503989 2024-002 - - C
1080428 2024-001 - - C
1080429 2024-001 - - C
1080430 2024-002 - - C
1080431 2024-002 - - C

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $84,212 Yes 2

Contacts

Name Title Type
H5HRT5S8LH21 Debbie Neely Auditee
9317965427 Joe Tarwater Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: SUMMARY OF SIGNIFICANT 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’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Duck River Apartments, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: SUMMARY OF SIGNIFICANT 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’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Duck River Apartments, 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 includes the federal award activity of Duck River Apartments, Inc., HUD Project No. 086-HD025, under programs of the federal government for the year ended June 30, 2024. 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 Clyde Rooker Senior Village, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Duck River Apartments, Inc.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: SUMMARY OF SIGNIFICANT 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’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Duck River Apartments, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: SUMMARY OF SIGNIFICANT 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’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Duck River Apartments, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. SUMMARY OF SIGNIFICANT 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’s Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Duck River Apartments, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
FINDINGS – FINANCIAL STATEMENTS AUDIT S2700-005 Finding Reference Number 2024-01 S2700-006 Finding Status Ongoing S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project was required to fund the Replacement Reserve account with deposits totaling $510 per month. S2700-010 Statement of Condition The Project failed to make monthly deposits into the Replacement Reserve account. Total delinquency from prior and current years is $5,100. S2700-020 Criteria Project is required to comply with Replacement Reserve deposit requirements from HUD. S2700-030 Effect Replacement Reserve was underfunded. S2700-040 Cause Controls were not in place to maintain compliance with Replacement Reserve funding requirements. S2700-050 Recommendation Implement procedures to prevent the Replacement Reserve from being underfunded. Make a deposit for underfunded Replacement Reserve deposits and to correct the amount deposited monthly for future deposits. S2700-055 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S2700-065 Amount of Questioned Costs $5,100 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation. S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date October 3, 2024 S2700-090 Actions Taken or Planned on the Finding Management agrees with the finding and will implement controls to prevent the Replacement Reserve from being underfunded in the future.
Finding 2024-001
FINDINGS – FINANCIAL STATEMENTS AUDIT S2700-005 Finding Reference Number 2024-01 S2700-006 Finding Status Ongoing S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project was required to fund the Replacement Reserve account with deposits totaling $510 per month. S2700-010 Statement of Condition The Project failed to make monthly deposits into the Replacement Reserve account. Total delinquency from prior and current years is $5,100. S2700-020 Criteria Project is required to comply with Replacement Reserve deposit requirements from HUD. S2700-030 Effect Replacement Reserve was underfunded. S2700-040 Cause Controls were not in place to maintain compliance with Replacement Reserve funding requirements. S2700-050 Recommendation Implement procedures to prevent the Replacement Reserve from being underfunded. Make a deposit for underfunded Replacement Reserve deposits and to correct the amount deposited monthly for future deposits. S2700-055 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S2700-065 Amount of Questioned Costs $5,100 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation. S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date October 3, 2024 S2700-090 Actions Taken or Planned on the Finding Management agrees with the finding and will implement controls to prevent the Replacement Reserve from being underfunded in the future.
Finding 2024-002
S2700-005 Finding Reference Number 2024-02 S2700-006 Finding Status Resolved S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information The tenant security deposit cash account was underfunded as of year-end. S2700-010 Statement of Condition The tenant security deposit cash account was underfunded as of year-end. S2700-020 Criteria The tenant security deposit cash account must equal or exceed the tenant security deposit liability. S2700-030 Effect Project is required to fund the tenant security deposit cash account. S2700-040 Cause The Project did not have sufficient cash on hand to fund the tenant security deposit cash account. S2700-050 Recommendation The Project should implement procedures to ensure funds collected for tenant security deposits are promptly transferred to the restricted cash account. S2700-055 Auditor Non-Compliance Code M - Security Deposits S2700-065 Amount of Questioned Costs $1,943 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation. S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date October 3, 2024 S2700-090 Actions Taken or Planned on the Finding Management agrees with the finding and has made a deposit into the Project's tenant security deposit account in the amount of $1,943.
Finding 2024-002
S2700-005 Finding Reference Number 2024-02 S2700-006 Finding Status Resolved S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information The tenant security deposit cash account was underfunded as of year-end. S2700-010 Statement of Condition The tenant security deposit cash account was underfunded as of year-end. S2700-020 Criteria The tenant security deposit cash account must equal or exceed the tenant security deposit liability. S2700-030 Effect Project is required to fund the tenant security deposit cash account. S2700-040 Cause The Project did not have sufficient cash on hand to fund the tenant security deposit cash account. S2700-050 Recommendation The Project should implement procedures to ensure funds collected for tenant security deposits are promptly transferred to the restricted cash account. S2700-055 Auditor Non-Compliance Code M - Security Deposits S2700-065 Amount of Questioned Costs $1,943 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation. S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date October 3, 2024 S2700-090 Actions Taken or Planned on the Finding Management agrees with the finding and has made a deposit into the Project's tenant security deposit account in the amount of $1,943.
Finding 2024-001
FINDINGS – FINANCIAL STATEMENTS AUDIT S2700-005 Finding Reference Number 2024-01 S2700-006 Finding Status Ongoing S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project was required to fund the Replacement Reserve account with deposits totaling $510 per month. S2700-010 Statement of Condition The Project failed to make monthly deposits into the Replacement Reserve account. Total delinquency from prior and current years is $5,100. S2700-020 Criteria Project is required to comply with Replacement Reserve deposit requirements from HUD. S2700-030 Effect Replacement Reserve was underfunded. S2700-040 Cause Controls were not in place to maintain compliance with Replacement Reserve funding requirements. S2700-050 Recommendation Implement procedures to prevent the Replacement Reserve from being underfunded. Make a deposit for underfunded Replacement Reserve deposits and to correct the amount deposited monthly for future deposits. S2700-055 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S2700-065 Amount of Questioned Costs $5,100 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation. S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date October 3, 2024 S2700-090 Actions Taken or Planned on the Finding Management agrees with the finding and will implement controls to prevent the Replacement Reserve from being underfunded in the future.
Finding 2024-001
FINDINGS – FINANCIAL STATEMENTS AUDIT S2700-005 Finding Reference Number 2024-01 S2700-006 Finding Status Ongoing S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project was required to fund the Replacement Reserve account with deposits totaling $510 per month. S2700-010 Statement of Condition The Project failed to make monthly deposits into the Replacement Reserve account. Total delinquency from prior and current years is $5,100. S2700-020 Criteria Project is required to comply with Replacement Reserve deposit requirements from HUD. S2700-030 Effect Replacement Reserve was underfunded. S2700-040 Cause Controls were not in place to maintain compliance with Replacement Reserve funding requirements. S2700-050 Recommendation Implement procedures to prevent the Replacement Reserve from being underfunded. Make a deposit for underfunded Replacement Reserve deposits and to correct the amount deposited monthly for future deposits. S2700-055 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S2700-065 Amount of Questioned Costs $5,100 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation. S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date October 3, 2024 S2700-090 Actions Taken or Planned on the Finding Management agrees with the finding and will implement controls to prevent the Replacement Reserve from being underfunded in the future.
Finding 2024-002
S2700-005 Finding Reference Number 2024-02 S2700-006 Finding Status Resolved S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information The tenant security deposit cash account was underfunded as of year-end. S2700-010 Statement of Condition The tenant security deposit cash account was underfunded as of year-end. S2700-020 Criteria The tenant security deposit cash account must equal or exceed the tenant security deposit liability. S2700-030 Effect Project is required to fund the tenant security deposit cash account. S2700-040 Cause The Project did not have sufficient cash on hand to fund the tenant security deposit cash account. S2700-050 Recommendation The Project should implement procedures to ensure funds collected for tenant security deposits are promptly transferred to the restricted cash account. S2700-055 Auditor Non-Compliance Code M - Security Deposits S2700-065 Amount of Questioned Costs $1,943 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation. S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date October 3, 2024 S2700-090 Actions Taken or Planned on the Finding Management agrees with the finding and has made a deposit into the Project's tenant security deposit account in the amount of $1,943.
Finding 2024-002
S2700-005 Finding Reference Number 2024-02 S2700-006 Finding Status Resolved S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information The tenant security deposit cash account was underfunded as of year-end. S2700-010 Statement of Condition The tenant security deposit cash account was underfunded as of year-end. S2700-020 Criteria The tenant security deposit cash account must equal or exceed the tenant security deposit liability. S2700-030 Effect Project is required to fund the tenant security deposit cash account. S2700-040 Cause The Project did not have sufficient cash on hand to fund the tenant security deposit cash account. S2700-050 Recommendation The Project should implement procedures to ensure funds collected for tenant security deposits are promptly transferred to the restricted cash account. S2700-055 Auditor Non-Compliance Code M - Security Deposits S2700-065 Amount of Questioned Costs $1,943 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation. S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date October 3, 2024 S2700-090 Actions Taken or Planned on the Finding Management agrees with the finding and has made a deposit into the Project's tenant security deposit account in the amount of $1,943.