FAC Explorer

Audit 338783

FY End
2024-04-30
Total Expended
$2.30M
Findings
2
Programs
2
Organization: Johnny John Commons, Inc. (OH)
Year: 2024 Accepted: 2025-01-17
Auditor: Tidwell Group LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
519701 2024-001 Significant Deficiency - N
1096143 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.97M Yes 1
14.182 Section 8 New Construction and Substantial Rehabilitation $324,045 - 0

Contacts

Name Title Type
V3XPKR81ER56 David Phillips Auditee
6144524184 Chris Bailey, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: (a) 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. (b) Corporation has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. (c) The outstanding balance of loan and loan guarantee programs at April 30, 2024 with continuing compliance requirements which are reported as federal expenditures in the accompanying schedule of expenditures of federal awards was $1,938,826. De Minimis Rate Used: N Rate Explanation: (b) Corporation has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Johnny John Commons, Inc. (the Corporation) under programs of the federal government for the year ended April 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a portion of the Corporation, it is not intended to and does not present the Corporation’s financial position, changes in net assets or cash flows.

Finding Details

Finding 2024-001
Finding Reference Number: 2024-001 Title and CFDA Number of Federal Program: 14.155 Project Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Type of Finding Federal Award Finding Finding Resolution Status: Resolved Information on Universe Population Size: N/A Sample Size Information: N/A Identification of Repeat Finding and Finding Reference: N/A Criteria: Compliance with the Regulatory Agreement requires disbursements from the Critical Repairs Reserve be made for the purpose of offsetting specific costs of critical repairs at the project upon consent of HUD. Statement of Condition: The Corporation requested and received distributions from the Critical Repairs Reserve account for duplicate invoices. The total of the duplicate invoices was $55,517, which was reduced by retainage withheld, resulting in distributions for duplicate invoices totaling $49,965. Cause: Management oversight. Effect or Potential Effect: Distributions of Critical Repairs Reserve funds for unallowable costs results in the Corporation beingnoncompliant with the Regulatory Agreement. Auditor Non-Compliance Code: H - Unauthorized distributions of project assets Questioned Costs: $49,965 Context: During the year ended April 30, 2024, the property had withdrawals from the Critical Repairs Reserve. Recommendation: The amount owed to the contractor for the critical repairs work completed at the project should be reduced by the amount of the overpayment to the contractor due to payment of duplicate invoices. Going forward, Management should review invoices included in the Critical Repairs Reserve withdrawal requests to ensure they are accurate and not duplicates.
Finding 2024-001
Finding Reference Number: 2024-001 Title and CFDA Number of Federal Program: 14.155 Project Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Type of Finding Federal Award Finding Finding Resolution Status: Resolved Information on Universe Population Size: N/A Sample Size Information: N/A Identification of Repeat Finding and Finding Reference: N/A Criteria: Compliance with the Regulatory Agreement requires disbursements from the Critical Repairs Reserve be made for the purpose of offsetting specific costs of critical repairs at the project upon consent of HUD. Statement of Condition: The Corporation requested and received distributions from the Critical Repairs Reserve account for duplicate invoices. The total of the duplicate invoices was $55,517, which was reduced by retainage withheld, resulting in distributions for duplicate invoices totaling $49,965. Cause: Management oversight. Effect or Potential Effect: Distributions of Critical Repairs Reserve funds for unallowable costs results in the Corporation beingnoncompliant with the Regulatory Agreement. Auditor Non-Compliance Code: H - Unauthorized distributions of project assets Questioned Costs: $49,965 Context: During the year ended April 30, 2024, the property had withdrawals from the Critical Repairs Reserve. Recommendation: The amount owed to the contractor for the critical repairs work completed at the project should be reduced by the amount of the overpayment to the contractor due to payment of duplicate invoices. Going forward, Management should review invoices included in the Critical Repairs Reserve withdrawal requests to ensure they are accurate and not duplicates.