FAC Explorer

Audit 4061

FY End
2023-06-30
Total Expended
$10.92M
Findings
2
Programs
2
Organization: Gwinnett Christian Terrace LLC (GA)
Year: 2023 Accepted: 2023-11-25
Auditor: Carter & Company CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
2361 2023-001 Significant Deficiency - M
578803 2023-001 Significant Deficiency - M

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $9.55M Yes 1
14.195 Section 8 Housing Assistance Payments Program $1.37M Yes 0

Contacts

Name Title Type
LX5MF9KT3K31 Sharon Kemp Auditee
4043775507 David Bell Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - 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 reimbursement. Gwinnett Christian Terrace, LLC has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Gwinnett Christian Terrace, LLC 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 Gwinnett Christian Terrace, LLC 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 Gwinnett Christian Terrace, LLC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Gwinnett Christian Terrace, LLC.
Title: NOTE C – U.S. Department of Housing and Urban Development Loan Program 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 reimbursement. Gwinnett Christian Terrace, LLC has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Gwinnett Christian Terrace, LLC has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Gwinnett Christian Terrace, LLC has received a U.S. Department of Housing and Urban Development insured loan under Section 223(f). The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Gwinnett Christian Terrace, LLC received no additional loans during the year. The balance of the loan outstanding at June 30, 2023 consists of: CFDA Number - 14.155; Program Name - Mortgage Insurance for the Purchase of or Refinancing of Existing Multifamily Housing Projects; Outstanding Balance at June 30, 2023 - $9,411,046

Finding Details

Finding 2023-001
Statement of Condition: Transfer was made out of the security deposit account. At June 30, 2023 the resident security deposit account did not equal or exceed the deposits collected from residents by $17,725.; Criteria: Chapter 2 of the HUD Handbook 4370.2 indicates that, when the Regulatory Agreement allows the receipt of security deposits, a separate bank account should be established to maintain these funds. The balance of the account must not at any time be less than the aggregate of all outstanding obligations under the account for security deposits.; Effect or Potential Effect: The Company is not in compliance with the terms of the Regulatory Agreement; Cause: The Company did not transfer sufficient funds to the security deposit account in order to equal or exceed the liability listing; Recommendation: The Company should transfer $17725 to the security deposit account and closely monitor the liability listing to ensure that the asset account is adequately funded.; Actions Taken or Planned on the Finding: Funds were deposited, and the Company will monitor and make sure the account is always funded.
Finding 2023-001
Statement of Condition: Transfer was made out of the security deposit account. At June 30, 2023 the resident security deposit account did not equal or exceed the deposits collected from residents by $17,725.; Criteria: Chapter 2 of the HUD Handbook 4370.2 indicates that, when the Regulatory Agreement allows the receipt of security deposits, a separate bank account should be established to maintain these funds. The balance of the account must not at any time be less than the aggregate of all outstanding obligations under the account for security deposits.; Effect or Potential Effect: The Company is not in compliance with the terms of the Regulatory Agreement; Cause: The Company did not transfer sufficient funds to the security deposit account in order to equal or exceed the liability listing; Recommendation: The Company should transfer $17725 to the security deposit account and closely monitor the liability listing to ensure that the asset account is adequately funded.; Actions Taken or Planned on the Finding: Funds were deposited, and the Company will monitor and make sure the account is always funded.