FAC Explorer

Audit 342579

FY End
2023-12-31
Total Expended
$15.52M
Findings
4
Programs
9
Organization: Quest Community Development Organization, Inc. (GA)
Year: 2023 Accepted: 2025-02-14
Auditor: Mauldin & Jenkins LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
523310 2023-002 Significant Deficiency Yes L
523311 2023-003 Significant Deficiency - N
1099752 2023-002 Significant Deficiency Yes L
1099753 2023-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $2.00M - 0
14.275 Housing Trust Fund $703,076 - 0
14.239 Home Investment Partnerships Program $513,066 Yes 0
14.267 Continuum of Care Program $253,088 - 0
14.881 Moving to Work Demonstration Program $87,090 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $43,039 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $30,000 - 0
97.024 Emergency Food and Shelter National Board Program $12,500 - 0
14.238 Shelter Plus Care $7,000 - 0

Contacts

Name Title Type
KH9FELLNT5G3 Marilyn Benton Auditee
6787055318 Lew Henry 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass‐through identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10‐percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards summarizes the expenditures of the Organization under programs of the federal government for the year ended December 31, 2023. The information in this schedule is presented in accordance with the provisions 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the presentation of, the basic financial statements. The schedule of expenditures of federal awards is prepared on a consolidated basis and includes the federal awards of Quest Village III of Georgia, Inc., Quest Commons at Historic Vine City, LP, and 339 Holly Street QHA, LLC.
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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass‐through identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10‐percent de minimis indirect cost rate as 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass‐through identifying numbers are presented where available.
Title: INDIRECT COST 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass‐through identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10‐percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization has elected not to use the 10‐percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: LOANS 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass‐through identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10‐percent de minimis indirect cost rate as allowed under the Uniform Guidance. Loan balances totaling $13,460,246 for loans described in 2 CFR section 200.502(b) were outstanding at December 31, 2023.

Finding Details

Finding 2023-002
2023-002 – Past-Due Single Audit Report Submission Criteria: Regulations require that the Organization must submit the single audit data collection form and reporting package within the earlier of 30 calendar days after receipt of the auditor’s report or 9 months after the end of the audit period, to comply with 2 CFR § 200.512(a)(1). Condition: The Organization submitted their 2022 Single Audit Data Collection form on September 5, 2024, which was 20 months after the end of the audit period. Effect: The Organization did not comply with 2 CFR § 200.512(a)(1). Per 2 CFR § 200.516(a)(2), this results in material noncompliance with the provisions of Federal statues, regulations, and terms and conditions of Federal awards related to major programs. Questioned Costs: No questioned costs were identified as a result of our procedures. Cause: The Organization failed to submit their 2022 Single Audit Data Collection form before the end of September 2023 – the 9 month post-audit period ending deadline. Recommendations: We recommend management finalize and submit their single audit data collection forms within the 9 month window moving forward. Views of Responsible Officials: The Organization agrees with the finding and will work to implement the recommendations.
Finding 2023-003
2023-003 - Annual Income Verification For Tenant Eligibility Criteria: Regulations require that HOME-assisted units in a rental housing project must be occupied only be households that are eligible as low-income families and must meet certain limits on rents that can be charged. Condition: The Organization was unable to provide evidence of income verification, to be completed upon signing an annual rental agreement, for seven of the tenants selected for testing. Effect: The Organization did not comply with 24 CFR § 92.252 (h). Per 24 CFR § 92.252 (h), this results in material noncompliance with the provisions of Federal statues, regulations, and terms and conditions of Federal awards related to major programs. Questioned Costs: The Organization’s lack of compliance resulted in $77,295 of questioned costs. Questioned costs were calculated by comparing the subsidies received for the exceptions noted and applying the prorated percentages to the remaining affected population. Cause: The Organization did not maintain evidence of annual income verification for seven of the tenants selected for testing. Recommendations: We recommend management review the tenant roles annually to ensure required income verifications are documented in compliance with program requirements. Views of Responsible Officials: The Organization agrees with the finding and will work to implement the recommendations.
Finding 2023-002
2023-002 – Past-Due Single Audit Report Submission Criteria: Regulations require that the Organization must submit the single audit data collection form and reporting package within the earlier of 30 calendar days after receipt of the auditor’s report or 9 months after the end of the audit period, to comply with 2 CFR § 200.512(a)(1). Condition: The Organization submitted their 2022 Single Audit Data Collection form on September 5, 2024, which was 20 months after the end of the audit period. Effect: The Organization did not comply with 2 CFR § 200.512(a)(1). Per 2 CFR § 200.516(a)(2), this results in material noncompliance with the provisions of Federal statues, regulations, and terms and conditions of Federal awards related to major programs. Questioned Costs: No questioned costs were identified as a result of our procedures. Cause: The Organization failed to submit their 2022 Single Audit Data Collection form before the end of September 2023 – the 9 month post-audit period ending deadline. Recommendations: We recommend management finalize and submit their single audit data collection forms within the 9 month window moving forward. Views of Responsible Officials: The Organization agrees with the finding and will work to implement the recommendations.
Finding 2023-003
2023-003 - Annual Income Verification For Tenant Eligibility Criteria: Regulations require that HOME-assisted units in a rental housing project must be occupied only be households that are eligible as low-income families and must meet certain limits on rents that can be charged. Condition: The Organization was unable to provide evidence of income verification, to be completed upon signing an annual rental agreement, for seven of the tenants selected for testing. Effect: The Organization did not comply with 24 CFR § 92.252 (h). Per 24 CFR § 92.252 (h), this results in material noncompliance with the provisions of Federal statues, regulations, and terms and conditions of Federal awards related to major programs. Questioned Costs: The Organization’s lack of compliance resulted in $77,295 of questioned costs. Questioned costs were calculated by comparing the subsidies received for the exceptions noted and applying the prorated percentages to the remaining affected population. Cause: The Organization did not maintain evidence of annual income verification for seven of the tenants selected for testing. Recommendations: We recommend management review the tenant roles annually to ensure required income verifications are documented in compliance with program requirements. Views of Responsible Officials: The Organization agrees with the finding and will work to implement the recommendations.