FAC Explorer

Audit 329443

FY End
2023-06-30
Total Expended
$1.51M
Findings
4
Programs
1
Organization: Genesis II Apartments, Inc. 054-Ee081-Wah (SC)
Year: 2023 Accepted: 2024-11-22
Auditor: Bernard Robinson & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
509763 2023-001 - - P
509764 2023-002 - - P
1086205 2023-001 - - P
1086206 2023-002 - - P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.51M Yes 2

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, 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 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, 2023: Program Title: Supportive Housing for the Elderly (Section 202); Assistance Listing Number: 14.157; Amount Outstanding: $1,456,900.

Finding Details

Finding 2023-001
Finding 2023-001 - 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, 2023 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 mortgage default. Cause: Change in management. Context: The engagement letter for the audit was executed after the required due date for 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, 2023 is past the required due date. The new management company will ensure the annual financial reports to HUD are submitted by the required due dates.
Finding 2023-002
Finding 2023-002 - 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 data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2023 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Effect: Noncompliance with Uniform Guidance regulations. Cause: Change in management. Context: The engagement letter for the audit was executed after the required due date for the required reporting package to the Federal Audit Clearinghouse (FAC). Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Views of Responsible Officials and Corrective Action Plan: The board of directors and management acknowledge that the data collection form for the year ended June 30, 2023 is past the required due date. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year.
Finding 2023-001
Finding 2023-001 - 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, 2023 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 mortgage default. Cause: Change in management. Context: The engagement letter for the audit was executed after the required due date for 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, 2023 is past the required due date. The new management company will ensure the annual financial reports to HUD are submitted by the required due dates.
Finding 2023-002
Finding 2023-002 - 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 data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2023 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Effect: Noncompliance with Uniform Guidance regulations. Cause: Change in management. Context: The engagement letter for the audit was executed after the required due date for the required reporting package to the Federal Audit Clearinghouse (FAC). Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Views of Responsible Officials and Corrective Action Plan: The board of directors and management acknowledge that the data collection form for the year ended June 30, 2023 is past the required due date. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year.