FAC Explorer

Audit 38745

FY End
2022-06-30
Total Expended
$1.08M
Findings
4
Programs
1
Organization: Garrett Road Apartments, Inc. 064-Hd070 (LA)
Year: 2022 Accepted: 2022-11-30
Auditor: Tidwell Group LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
44355 2022-001 Significant Deficiency - N
44356 2022-001 Significant Deficiency - N
620797 2022-001 Significant Deficiency - N
620798 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $59,693 Yes 1

Contacts

Name Title Type
FYSMWCNSHL37 Tom Farris Auditee
3182278693 Xiaohui Jiang Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE 1 - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal grantactivity of Garrett Road Apartments, Inc., HUD Project No. 064-HD070, under programs ofthe federal government for the year ended June 30, 2022. The information in this schedule ispresented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the schedule presents only aselected portion of the operations of Garrett Road Apartments, Inc., it is not intended to anddoes not present the financial position, changes in net assets (deficit), or cash flows of GarrettRoad Apartments, Inc. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in OMB Circular A-122,Cost Principles for Non-profit Organizations and the cost principles contained in UniformGuidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1023961.

Finding Details

Finding 2022-001
Finding No. 2022-1 Statement of Condition During the year ended June 30, 2022, the project did not make the required monthly deposits to the replacement reserve in the amount of $3,000. Criteria The regulatory agreement requires that the project make monthly deposits to its replacement reserve in the amount of $1,000. Cause Insufficient cash flow caused the replacement reserve to be underfunded. Questioned Costs $3,000 Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the regulatory agreement. Auditor Noncompliance Code N ? Reserve for replacements deposits Recommendations Management should ensure all monthly required deposits to the replacement reserve are made in a timely manner. Views of Responsible Officials Management agrees with the finding and has requested approval from HUD to withdraw funds from the residual receipts reserve to fund current deficits. As disclosed in Note 13, the Trustees are working on replacing the current Board Members of the Corporation.
Finding 2022-001
Finding No. 2022-1 Statement of Condition During the year ended June 30, 2022, the project did not make the required monthly deposits to the replacement reserve in the amount of $3,000. Criteria The regulatory agreement requires that the project make monthly deposits to its replacement reserve in the amount of $1,000. Cause Insufficient cash flow caused the replacement reserve to be underfunded. Questioned Costs $3,000 Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the regulatory agreement. Auditor Noncompliance Code N ? Reserve for replacements deposits Recommendations Management should ensure all monthly required deposits to the replacement reserve are made in a timely manner. Views of Responsible Officials Management agrees with the finding and has requested approval from HUD to withdraw funds from the residual receipts reserve to fund current deficits. As disclosed in Note 13, the Trustees are working on replacing the current Board Members of the Corporation.
Finding 2022-001
Finding No. 2022-1 Statement of Condition During the year ended June 30, 2022, the project did not make the required monthly deposits to the replacement reserve in the amount of $3,000. Criteria The regulatory agreement requires that the project make monthly deposits to its replacement reserve in the amount of $1,000. Cause Insufficient cash flow caused the replacement reserve to be underfunded. Questioned Costs $3,000 Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the regulatory agreement. Auditor Noncompliance Code N ? Reserve for replacements deposits Recommendations Management should ensure all monthly required deposits to the replacement reserve are made in a timely manner. Views of Responsible Officials Management agrees with the finding and has requested approval from HUD to withdraw funds from the residual receipts reserve to fund current deficits. As disclosed in Note 13, the Trustees are working on replacing the current Board Members of the Corporation.
Finding 2022-001
Finding No. 2022-1 Statement of Condition During the year ended June 30, 2022, the project did not make the required monthly deposits to the replacement reserve in the amount of $3,000. Criteria The regulatory agreement requires that the project make monthly deposits to its replacement reserve in the amount of $1,000. Cause Insufficient cash flow caused the replacement reserve to be underfunded. Questioned Costs $3,000 Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the regulatory agreement. Auditor Noncompliance Code N ? Reserve for replacements deposits Recommendations Management should ensure all monthly required deposits to the replacement reserve are made in a timely manner. Views of Responsible Officials Management agrees with the finding and has requested approval from HUD to withdraw funds from the residual receipts reserve to fund current deficits. As disclosed in Note 13, the Trustees are working on replacing the current Board Members of the Corporation.