FAC Explorer

Audit 49453

FY End
2022-09-30
Total Expended
$8.90M
Findings
2
Programs
2
Organization: The Salvation Army Residence Inc., A Florida Corporation (FL)
Year: 2022 Accepted: 2023-02-27
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
52026 2022-001 Material Weakness Yes N
628468 2022-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $6.46M Yes 1
14.182 Section 8 New Construction and Substantial Rehabilitation $2.43M Yes 0

Contacts

Name Title Type
R26VS46N7RL9 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. William Booth Towers has elected not to use the 10-percent de minimis indirect cost rateallowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Note C - U.S. Department of Housing and Urban Development loan programWilliam Booth Towers has received a U.S. Department of Housing and Urban Development insuredloan under Section 223(f) of the National Housing Act. The loan balance outstanding at thebeginning of the year is included in the federal expenditures presented in the Schedule. WilliamBooth Towers received no additional loans during the year. The balance of the loan outstanding atSeptember 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 6350806.
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. William Booth Towers has elected not to use the 10-percent de minimis indirect cost rateallowed under the 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 William Booth Towers, HUD Project No.: 067-11269, under programs of the federal governmentfor the year ended September 30, 2022. The information in this Schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations ofWilliam Booth Towers, it is not intended to and does not present the financial position, changes innet assets, or cash flows of William Booth Towers.

Finding Details

Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Section 223(f) Mortgage Insurance Program, AL 14.155 Statement of Condition For the year ended September 30, 2021, management did not make the required residual receipts reserve deposit in the amount of $109,025 within 90 days of year end, as required by HUD. The residual receipts amount was deposited on February 11, 2022. Criteria Residual receipts reserve deposits should be made within 90 days of year end. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect The Project is not in compliance with the requirements of the Regulatory Agreement. 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 deposits (REAC); N - Special tests and provisions (UG) Finding Resolution Status: Resolved. Management is working to get the audit done in a more timely manner so that the calculation for residual receipts can be completed in time to make any necessary deposits within the required deadline. The intent is to begin the FY 23 audit prior to fiscal year end to allow for customary preliminary audit work. Reporting Views of Responsible Officials On February 11, 2022, the Project remitted the funds to HUD.
Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Section 223(f) Mortgage Insurance Program, AL 14.155 Statement of Condition For the year ended September 30, 2021, management did not make the required residual receipts reserve deposit in the amount of $109,025 within 90 days of year end, as required by HUD. The residual receipts amount was deposited on February 11, 2022. Criteria Residual receipts reserve deposits should be made within 90 days of year end. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect The Project is not in compliance with the requirements of the Regulatory Agreement. 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 deposits (REAC); N - Special tests and provisions (UG) Finding Resolution Status: Resolved. Management is working to get the audit done in a more timely manner so that the calculation for residual receipts can be completed in time to make any necessary deposits within the required deadline. The intent is to begin the FY 23 audit prior to fiscal year end to allow for customary preliminary audit work. Reporting Views of Responsible Officials On February 11, 2022, the Project remitted the funds to HUD.