FAC Explorer

Audit 357551

FY End
2024-12-31
Total Expended
$2.31M
Findings
4
Programs
1
Organization: Crossway Tower, Inc. (MA)
Year: 2024 Accepted: 2025-05-29
Auditor: Cbiz CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
561901 2024-002 Significant Deficiency - AB
561902 2024-003 Significant Deficiency - N
1138343 2024-002 Significant Deficiency - AB
1138344 2024-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.31M Yes 2

Contacts

Name Title Type
PKL8ZHMT8R33 Allison Maxfield Auditee
4134991630 Erica Olobri Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Crossway Tower, Inc., under programs of the federal government for the year ended December 31, 2024. The information in the schedule is presented in accordance with the requirements of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Crossway Tower, Inc., it is not intended to and does not present the financial position, changes in net assets (deficit) or cash flows of Crossway Tower, Inc.. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. NOTE 3 - INDIRECT COST RATE The Crossway Tower, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 4 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE PROGRAM Crossway Tower, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the Federal expenditures presented in the Schedule. Crossway Tower, Inc. received no additional loans or loan guarantees during the year. The balance of the capital advance outstanding at December 31, 2024 amounts to $2,169,900 De Minimis Rate Used: N Rate Explanation: The auditee elected to not use the de minimis cost rate The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Crossway Tower, Inc., under programs of the federal government for the year ended December 31, 2024. The information in the schedule is presented in accordance with the requirements of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Crossway Tower, Inc., it is not intended to and does not present the financial position, changes in net assets (deficit) or cash flows of Crossway Tower, Inc..
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Crossway Tower, Inc., under programs of the federal government for the year ended December 31, 2024. The information in the schedule is presented in accordance with the requirements of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Crossway Tower, Inc., it is not intended to and does not present the financial position, changes in net assets (deficit) or cash flows of Crossway Tower, Inc.. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. NOTE 3 - INDIRECT COST RATE The Crossway Tower, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 4 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE PROGRAM Crossway Tower, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the Federal expenditures presented in the Schedule. Crossway Tower, Inc. received no additional loans or loan guarantees during the year. The balance of the capital advance outstanding at December 31, 2024 amounts to $2,169,900 De Minimis Rate Used: N Rate Explanation: The auditee elected to not use the de minimis cost rate Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned.
Title: Note 3 - Indirect Cost Rate Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Crossway Tower, Inc., under programs of the federal government for the year ended December 31, 2024. The information in the schedule is presented in accordance with the requirements of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Crossway Tower, Inc., it is not intended to and does not present the financial position, changes in net assets (deficit) or cash flows of Crossway Tower, Inc.. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. NOTE 3 - INDIRECT COST RATE The Crossway Tower, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 4 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE PROGRAM Crossway Tower, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the Federal expenditures presented in the Schedule. Crossway Tower, Inc. received no additional loans or loan guarantees during the year. The balance of the capital advance outstanding at December 31, 2024 amounts to $2,169,900 De Minimis Rate Used: N Rate Explanation: The auditee elected to not use the de minimis cost rate The Crossway Tower, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4 - U.S. Department of Housing and Urban Development Capital Advance Program Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Crossway Tower, Inc., under programs of the federal government for the year ended December 31, 2024. The information in the schedule is presented in accordance with the requirements of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Crossway Tower, Inc., it is not intended to and does not present the financial position, changes in net assets (deficit) or cash flows of Crossway Tower, Inc.. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. NOTE 3 - INDIRECT COST RATE The Crossway Tower, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 4 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAPITAL ADVANCE PROGRAM Crossway Tower, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the Federal expenditures presented in the Schedule. Crossway Tower, Inc. received no additional loans or loan guarantees during the year. The balance of the capital advance outstanding at December 31, 2024 amounts to $2,169,900 De Minimis Rate Used: N Rate Explanation: The auditee elected to not use the de minimis cost rate Crossway Tower, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the Federal expenditures presented in the Schedule. Crossway Tower, Inc. received no additional loans or loan guarantees during the year. The balance of the capital advance outstanding at December 31, 2024 amounts to $2,169,900

Finding Details

Finding 2024-002
Criteria The Project funds may be used only for expenses that are reasonable and necessary to the operation of the project as provided for in the Regulatory Agreement between HUD and the project owner. Furthermore, internal controls over compliance should be in place and operating effectively in order to deter federal funds being expended on activities that are not allowed. Condition During our audit of the Supporting Housing for the Elderly (Section 202) program we noted that the management fees charged exceeded the HUD approved allowable management fee of 6.38% of residential income collected. Cause of Condition The Project didn’t have adequate controls in place over management fee, which resulted in noncompliance with allowable cost requirements. Effect Due to the weakness in internal controls and compliance finding noted above, there is a risk federal funds being expended on activities that are not allowed. Questioned Costs: None Identification as a Repeat Finding, if applicable – No Recommendation We recommend that the management review their current policies and procedures and establish adequate internal controls related to allowable expenses. Management’s Response Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
Finding 2024-003
Criteria Under the Uniform Guidance Special Test requirements, the Project is required to maintain sufficient internal controls to ensure compliance with special tests. Condition During our audit procedures we noted that there are weaknesses in internal controls over replacement reserve and residual receipts accounts. There is no documentation of this accounts being reviewed by management. Cause of Condition The Project didn’t have adequate controls in place to ensure that replacement reserve and residual receipts required deposits are made in accordance with the Uniform Guidance requirements Effect If the control process is not documented, it is not possible to determine if the controls are designed and applied consistently. The inadequate documentation of the components of internal controls could result in an inability to appropriately monitor the effectiveness of the internal controls. Questioned Costs: None Identification as a Repeat Finding, if applicable – No Recommendation We recommend that management implement a process to document formal review and approvals of replacement reserve and residual receipts accounts. Management’s Response Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
Finding 2024-002
Criteria The Project funds may be used only for expenses that are reasonable and necessary to the operation of the project as provided for in the Regulatory Agreement between HUD and the project owner. Furthermore, internal controls over compliance should be in place and operating effectively in order to deter federal funds being expended on activities that are not allowed. Condition During our audit of the Supporting Housing for the Elderly (Section 202) program we noted that the management fees charged exceeded the HUD approved allowable management fee of 6.38% of residential income collected. Cause of Condition The Project didn’t have adequate controls in place over management fee, which resulted in noncompliance with allowable cost requirements. Effect Due to the weakness in internal controls and compliance finding noted above, there is a risk federal funds being expended on activities that are not allowed. Questioned Costs: None Identification as a Repeat Finding, if applicable – No Recommendation We recommend that the management review their current policies and procedures and establish adequate internal controls related to allowable expenses. Management’s Response Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
Finding 2024-003
Criteria Under the Uniform Guidance Special Test requirements, the Project is required to maintain sufficient internal controls to ensure compliance with special tests. Condition During our audit procedures we noted that there are weaknesses in internal controls over replacement reserve and residual receipts accounts. There is no documentation of this accounts being reviewed by management. Cause of Condition The Project didn’t have adequate controls in place to ensure that replacement reserve and residual receipts required deposits are made in accordance with the Uniform Guidance requirements Effect If the control process is not documented, it is not possible to determine if the controls are designed and applied consistently. The inadequate documentation of the components of internal controls could result in an inability to appropriately monitor the effectiveness of the internal controls. Questioned Costs: None Identification as a Repeat Finding, if applicable – No Recommendation We recommend that management implement a process to document formal review and approvals of replacement reserve and residual receipts accounts. Management’s Response Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.