Audit 342147

FY End
2024-09-30
Total Expended
$1.15M
Findings
2
Programs
1
Organization: The Cottages at Beaufort, Inc. (GA)
Year: 2024 Accepted: 2025-02-12
Auditor: Aprio LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
522760 2024-001 Material Weakness - N
1099202 2024-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $78,524 Yes 0

Contacts

Name Title Type
Q8NKN3HL8CN7 Jill Cromartie Auditee
7702562259 Melissa Dunn Auditor
No contacts on file

Notes to SEFA

Title: Note 1: 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 OMB Circular A-122, "Cost Principles for Non-Profit Organizations" or 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: The Organization has not elected to use the 10% de minimus indirect cost rate allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of The Cottages at Beaufort, Inc. under programs of the federal government for the year ended September 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 The Cottages at Beaufort, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of The Cottages at Beaufort, Inc.
Title: Note 2: 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 OMB Circular A-122, "Cost Principles for Non-Profit Organizations" or 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: The Organization has not elected to use the 10% de minimus indirect cost rate allowed under 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 OMB Circular A-122, "Cost Principles for Non-Profit Organizations" or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3: Indirect Cost Rate 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 Circular A-122, "Cost Principles for Non-Profit Organizations" or 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: The Organization has not elected to use the 10% de minimus indirect cost rate allowed under Uniform Guidance. The Cottages at Beaufort, Inc. has not elected to use the 10% de minimus indirect cost rate allowed under Uniform Guidance.
Title: Note 4: Section 202 Capital Advance 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 Circular A-122, "Cost Principles for Non-Profit Organizations" or 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: The Organization has not elected to use the 10% de minimus indirect cost rate allowed under Uniform Guidance. The Cottages at Beaufort, Inc. has received a loan under the Section 202 Capital Advance program. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of loan outstanding as of September 30, 2024 is $1,071,400.

Finding Details

Finding Reference Number: 2024-01 Title and AL Number of Federal Program: Section 202 Capital Advance and Project Rental Assistance 14.157 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 Number: n/a Criteria: The Corporation is required to have property insurance sufficient to cover replacement of the building per the HUD Handbook. Statement of Condition: For the year ended September 30, 2024, the Corporation did not have the required amount of property insurance coverage for certain portions of the year. Cause: The bill was not paid which resulted in cancellation of the policy. Effect or Potential Effect: Noncompliance with HUD regulations, Chapter 21 Section 2. Auditor Non-Compliance Code: Z - Other Questioned Costs: $- Reportable Views of Responsible Officials: Management is in agreement with the finding and has reinstated the insurance policy with required coverage amounts. Context: n/a Recommendation: Management should ensure insurance policy is in place and that coverage amounts meet HUD requirements. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Management has reinstated the insurance policy as of December 10, 2024. Response Indicator: Agree Completion Date: 9/30/2024 Response: Management has obtained an insurance policy with sufficient coverage and has increased controls around payments of premiums to ensure there are no future lapses.
Finding Reference Number: 2024-01 Title and AL Number of Federal Program: Section 202 Capital Advance and Project Rental Assistance 14.157 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 Number: n/a Criteria: The Corporation is required to have property insurance sufficient to cover replacement of the building per the HUD Handbook. Statement of Condition: For the year ended September 30, 2024, the Corporation did not have the required amount of property insurance coverage for certain portions of the year. Cause: The bill was not paid which resulted in cancellation of the policy. Effect or Potential Effect: Noncompliance with HUD regulations, Chapter 21 Section 2. Auditor Non-Compliance Code: Z - Other Questioned Costs: $- Reportable Views of Responsible Officials: Management is in agreement with the finding and has reinstated the insurance policy with required coverage amounts. Context: n/a Recommendation: Management should ensure insurance policy is in place and that coverage amounts meet HUD requirements. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Management has reinstated the insurance policy as of December 10, 2024. Response Indicator: Agree Completion Date: 9/30/2024 Response: Management has obtained an insurance policy with sufficient coverage and has increased controls around payments of premiums to ensure there are no future lapses.