FAC Explorer

Audit 362570

FY End
2022-12-31
Total Expended
$7.46M
Findings
2
Programs
2
Organization: Cornerstone Homes River Gardens, Inc. (LA)
Year: 2022 Accepted: 2025-07-18
Auditor: Johnson Perry Roussel & Cuthbert LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
571636 2022-001 Significant Deficiency Yes N
1148078 2022-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $7.32M Yes 1
14.195 Section 8 Housing Assistance Payments Program $143,628 - 0

Contacts

Name Title Type
HHJ1FXBNACY8 Lolita Thompson Auditee
3183231411 Jay Cuthbert 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 Year Ended December 31, 2022 reimbursement. Cornerstone Homes River Garden, Inc. does not use an indirect cost rate. De Minimis Rate Used: N Rate Explanation: Cornerstone Homes River Garden, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Cornerstone Homes River Garden, Inc., HUD Project No. 064EE167, 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 Cornerstone Homes River Garden, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Cornerstone Homes River Garden, Inc.
Title: 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to Year Ended December 31, 2022 reimbursement. Cornerstone Homes River Garden, Inc. does not use an indirect cost rate. De Minimis Rate Used: N Rate Explanation: Cornerstone Homes River Garden, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The outstanding balance of the capital advance at December 31, 2022 was $7,320,155.

Finding Details

Finding 2022-001
Criteria: The Regulatory Agreement between the Entity and HUD requires the Entity to establish and maintain a residual receipts account. The agreement requires the owners to deposit surplus cash (residual receipts) into this account within 90 days after the end of the annual fiscal period within which is was generated. Condition: At December 31, 2015 the Entity was short on the required residual receipts deposit in the amount of $26,538. The Entity’s surplus cash at December 31, 2016 totaled $38,063. The total required deposits required to be made in the residual receipts was $64,601. The Entity deposited $31,999 on May 21, 2017. This left a shortage of required deposits totaling $32,602 at December 31, 2017. The Entity deposited $38,063 on January 26, 2018. Surplus cash at December 31, 2017 totaled $45,969. This left a shortage of required deposits totaling $40,508 on December 31, 2018. Surplus cash at December 31, 2018 totaled $32,699 and the Entity deposited $32,602. This left a shortage of required deposits totaling $40,605 on December 31, 2019. Surplus cash at December 31, 2019 totaled $19,660 and the Entity deposited $7,906. This left a shortage of required deposits totaling $52,359. Cause: This was an oversight by the management agent. Effect: The Entity is in direct violation of the HUD Regulatory Agreement. Recommendation: The management agent should compute an estimate of surplus cash (residual receipts) for the fiscal year upon completion of that period. In the event that surplus cash exists at the completion of the fiscal period, the management agent must further ensure that all required deposits are made to the residual receipts account within the required time frame and that the balance in that account meets the minimum required balance in accordance with the regulatory agreement between the Entity and HUD. Response: The management agent agrees with the finding and the auditors’ recommendations have been adopted. Surplus cash will be calculated upon the completion of an annual fiscal period. If it is concluded that surplus cash exists at the end of the annual fiscal period, and further determined that the surplus cash was received within that fiscal period, that amount of surplus cash will be deposited into the Residual Receipts Account within ninety days of the close of that fiscal period. Other Information: This has been a repeat finding since the December 31, 2012 audit. Prior year finding number was #2021-001.
Finding 2022-001
Criteria: The Regulatory Agreement between the Entity and HUD requires the Entity to establish and maintain a residual receipts account. The agreement requires the owners to deposit surplus cash (residual receipts) into this account within 90 days after the end of the annual fiscal period within which is was generated. Condition: At December 31, 2015 the Entity was short on the required residual receipts deposit in the amount of $26,538. The Entity’s surplus cash at December 31, 2016 totaled $38,063. The total required deposits required to be made in the residual receipts was $64,601. The Entity deposited $31,999 on May 21, 2017. This left a shortage of required deposits totaling $32,602 at December 31, 2017. The Entity deposited $38,063 on January 26, 2018. Surplus cash at December 31, 2017 totaled $45,969. This left a shortage of required deposits totaling $40,508 on December 31, 2018. Surplus cash at December 31, 2018 totaled $32,699 and the Entity deposited $32,602. This left a shortage of required deposits totaling $40,605 on December 31, 2019. Surplus cash at December 31, 2019 totaled $19,660 and the Entity deposited $7,906. This left a shortage of required deposits totaling $52,359. Cause: This was an oversight by the management agent. Effect: The Entity is in direct violation of the HUD Regulatory Agreement. Recommendation: The management agent should compute an estimate of surplus cash (residual receipts) for the fiscal year upon completion of that period. In the event that surplus cash exists at the completion of the fiscal period, the management agent must further ensure that all required deposits are made to the residual receipts account within the required time frame and that the balance in that account meets the minimum required balance in accordance with the regulatory agreement between the Entity and HUD. Response: The management agent agrees with the finding and the auditors’ recommendations have been adopted. Surplus cash will be calculated upon the completion of an annual fiscal period. If it is concluded that surplus cash exists at the end of the annual fiscal period, and further determined that the surplus cash was received within that fiscal period, that amount of surplus cash will be deposited into the Residual Receipts Account within ninety days of the close of that fiscal period. Other Information: This has been a repeat finding since the December 31, 2012 audit. Prior year finding number was #2021-001.