FAC Explorer

Audit 331842

FY End
2024-06-30
Total Expended
$923,038
Findings
2
Programs
1
Organization: Kay Goss Apartments, Inc. (AR)
Year: 2024 Accepted: 2024-12-11
Auditor: Fleet Firm

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
513838 2024-001 - - C
1090280 2024-001 - - C

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $78,738 - 0

Contacts

Name Title Type
CUVCMNHPJVD7 Carl Schultz Auditee
5012800037 Nelson Fleet 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. De Minimis Rate Used: N Rate Explanation: Kay Goss Apartments, Inc. has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Kay Goss Apartments, Inc., HUD Project No. 082-HD070-NP-L8, 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 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 Kay Goss Apartments, Inc., it is not intended to and does not present the financial; position, changes in net assets, or cash flows of Kay Goss Apartments, Inc.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. De Minimis Rate Used: N Rate Explanation: Kay Goss Apartments, Inc. has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. 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. Kay Goss Apartments, Inc. has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE PROGRAM 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. De Minimis Rate Used: N Rate Explanation: Kay Goss Apartments, Inc. has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. Kay Goss Apartments, Inc. has received a U.S. department of Housing and Urban Development Capital Advance under Section 811 of the National Housing Act. The capital advance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Kay Goss Apartments, Inc. received no additional capital advances during the year. The balance of the capital advance outstanding at June 30, 2024, consists of:

Finding Details

Finding 2024-001
Findings and Questioned Costs – Major Federal Award Programs Audit U.S. Department of Housing & Urban Development Finding 2024-001 – Reserve for Replacements, Federal Asset Listing Number 14.181 Finding Resolution Status – Unresolved Information on Universe Population Size – N/A Sample Size Information – N/A Identification of Repeat Finding and Finding Reference Number – N/A Criteria - HUD requires monthly deposits to be made to the replacement reserve account on a timely basis. Statement of Condition - The replacement reserve account is underfunded in the amount of $777 for the year ended June 30, 2024. Cause - The Organization is experiencing cash flow shortages due to high vacancies. The management company is working to reduce vacancies to allow for a more stable cash flow to enable the Organization to make the required monthly deposits on a timely basis. Effect or Potential Effect - The Organization’s replacement reserve account is underfunded $777 at year end. Auditor Non-Compliance Code – N – Reserve for Replacements Deposits Questioned Costs – Zero Reporting views of Responsible Officials – agrees with finding. Recommendation - Deposit shortage should be funded as soon as possible. Auditor’s Summary of the Auditee’s Comments on the findings and Recommendations – The auditee’s comments appear to be accurate and consistent with the auditor finding. Response indicator – Agree Completion date - 6/30/2025 Response - Shortage will be funded prior to June 30, 2025.
Finding 2024-001
Findings and Questioned Costs – Major Federal Award Programs Audit U.S. Department of Housing & Urban Development Finding 2024-001 – Reserve for Replacements, Federal Asset Listing Number 14.181 Finding Resolution Status – Unresolved Information on Universe Population Size – N/A Sample Size Information – N/A Identification of Repeat Finding and Finding Reference Number – N/A Criteria - HUD requires monthly deposits to be made to the replacement reserve account on a timely basis. Statement of Condition - The replacement reserve account is underfunded in the amount of $777 for the year ended June 30, 2024. Cause - The Organization is experiencing cash flow shortages due to high vacancies. The management company is working to reduce vacancies to allow for a more stable cash flow to enable the Organization to make the required monthly deposits on a timely basis. Effect or Potential Effect - The Organization’s replacement reserve account is underfunded $777 at year end. Auditor Non-Compliance Code – N – Reserve for Replacements Deposits Questioned Costs – Zero Reporting views of Responsible Officials – agrees with finding. Recommendation - Deposit shortage should be funded as soon as possible. Auditor’s Summary of the Auditee’s Comments on the findings and Recommendations – The auditee’s comments appear to be accurate and consistent with the auditor finding. Response indicator – Agree Completion date - 6/30/2025 Response - Shortage will be funded prior to June 30, 2025.