Audit 49451

FY End

2022-09-30

Total Expended

$4.77M

Findings

2

Programs

2

Organization: Booth Residence Inc., A Georgia Corporation (GA)

Year: 2022 Accepted: 2023-02-27

Auditor: Cohnreznick LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
46555	2022-001	Material Weakness	-	N
622997	2022-001	Material Weakness	-	N

ALN	Program	Spent	Major	Findings
14.155	Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects	$3.90M	Yes	1
14.195	Section 8 Housing Assistance Payments Program	$867,486	-	0

Contacts

Name	Title	Type
TZNVJV2R7J19	Major Philip Swyers	Auditee
4047286700	Amy Blocker	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note B - Summary of significant accounting policiesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following, as applicable, the cost principles contained in the UniformGuidance. The Salvation Army William Booth Towers has elected not to use the 10-percent deminimis indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Salvation Army William Booth Towers has received a U.S. Department of Housing and UrbanDevelopment direct loan under Section 223 (a) (7) of the National Housing Act. The loan balanceoutstanding at the beginning of the year is included in the federal expenditures presented in theSchedule. The Salvation Army William Booth Towers received no additional loans during the year.The balance of the loan outstanding at September 30, 2022 consists of: MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 3735551.

Title: Note A - Basis of presentation Accounting Policies: Note B - Summary of significant accounting policiesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following, as applicable, the cost principles contained in the UniformGuidance. The Salvation Army William Booth Towers has elected not to use the 10-percent deminimis indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal award activityof The Salvation Army William Booth Towers, HUD Project No.: 061-11293, under programs of thefederal government for the year ended September 30, 2022. The information in this Schedule ispresented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards ("Uniform Guidance"). Because the Schedule presents only a selected portion of theoperations of The Salvation Army William Booth Towers, it is not intended to and does not presentthe financial position, changes in net assets, or cash flows of The Salvation Army William BoothTowers.

Finding Details

Finding 2022-001

Department of Housing and Urban Development Finding 2022-001 Section 223(a)(7) Mortgage Insurance Program, AL 14.155 Statement of Condition During the year ended September 30, 2022, management did not make the full required residual receipts reserve deposit in the amount of $9,123 within 90 days of year end, as required by HUD. Criteria Residual receipts reserve deposits should be made within 90 days of year end. Effect The Organization is not in compliance with the requirements of the regulatory agreement. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. The deposit amount was revised upwards based on the final audited financial statements and management did not realize the deposit amount had been increased from original estimates. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B. Failure to make required residual receipts deposit (REAC); N- Special Tests and Provisions (UG) Finding Resolution Status: Resolved Reporting Views of Responsible Officials Management did not make the required deposit timely as the fiscal year 2021 audit was so delayed that the calculation wasn't finalized in time to make the correct deposit amount prior to the December 2021 deadline. The initially calculated amount was deposited timely. The updated amount wasn't provided until June 2022. The amount was deposited on September 27, 2022. Management is working to get the fiscal year 2022 audit done in a more-timely manner.

Finding 2022-001

Department of Housing and Urban Development Finding 2022-001 Section 223(a)(7) Mortgage Insurance Program, AL 14.155 Statement of Condition During the year ended September 30, 2022, management did not make the full required residual receipts reserve deposit in the amount of $9,123 within 90 days of year end, as required by HUD. Criteria Residual receipts reserve deposits should be made within 90 days of year end. Effect The Organization is not in compliance with the requirements of the regulatory agreement. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. The deposit amount was revised upwards based on the final audited financial statements and management did not realize the deposit amount had been increased from original estimates. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B. Failure to make required residual receipts deposit (REAC); N- Special Tests and Provisions (UG) Finding Resolution Status: Resolved Reporting Views of Responsible Officials Management did not make the required deposit timely as the fiscal year 2021 audit was so delayed that the calculation wasn't finalized in time to make the correct deposit amount prior to the December 2021 deadline. The initially calculated amount was deposited timely. The updated amount wasn't provided until June 2022. The amount was deposited on September 27, 2022. Management is working to get the fiscal year 2022 audit done in a more-timely manner.