FAC Explorer

Audit 329247

FY End
2024-06-30
Total Expended
$1.52M
Findings
2
Programs
1
Organization: Genesis II Apartments, Inc. 054-Ee081-Wah (SC)
Year: 2024 Accepted: 2024-11-21
Auditor: Bernard Robinson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
509646 2024-001 - Yes P
1086088 2024-001 - Yes P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.52M Yes 1

Contacts

Name Title Type
F4VDW8BX1FW3 Matthew Brandon Auditee
8038083966 Jamie Parsons 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Genesis II 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: Genesis II 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 (the "Schedule") includes the federal award activity of Genesis II Apartments, Inc., 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 Genesis II Apartments, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Genesis II Apartments, Inc.
Title: LOAN OUTSTANDING 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Genesis II 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: Genesis II Apartments, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Genesis II Apartments, Inc. had the following loan balance, related to federal awards, outstanding at June 30, 2024: Program Title: Supportive Housing for the Elderly (Section 202); Assistance Listing Number: 14.157; Amount Outstanding: $1,456,900.

Finding Details

Finding 2024-001
Finding 2024-001 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), Assistance Listing #14.157 Statement of Condition: The Corporation did not submit the annual financial report to HUD for the year ended June 30, 2024 by the required deadline. Criteria: The Regulatory Agreement requires the Corporation to submit to HUD the annual financial report within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations and the possibility that the Project could be subject to criminal and civil monetary penalities. Cause: The Corporation had a change in management, resulting in timing delays in recipt of information required to complete the audit for the year ending June 30, 2023 which also delayed the audit for the year ending June 30, 2024. Context: The engagement letter for the audit was executed after the HUD annual financial report due date. Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report to HUD for the year ended June 30, 2024 is past the required due date. The management company will ensure the annual financial reports to HUD are submitted by the required due dates once the audits are back on track with scheduled due dates.
Finding 2024-001
Finding 2024-001 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), Assistance Listing #14.157 Statement of Condition: The Corporation did not submit the annual financial report to HUD for the year ended June 30, 2024 by the required deadline. Criteria: The Regulatory Agreement requires the Corporation to submit to HUD the annual financial report within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations and the possibility that the Project could be subject to criminal and civil monetary penalities. Cause: The Corporation had a change in management, resulting in timing delays in recipt of information required to complete the audit for the year ending June 30, 2023 which also delayed the audit for the year ending June 30, 2024. Context: The engagement letter for the audit was executed after the HUD annual financial report due date. Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report to HUD for the year ended June 30, 2024 is past the required due date. The management company will ensure the annual financial reports to HUD are submitted by the required due dates once the audits are back on track with scheduled due dates.