EIN: 261483697
UEI: UZWMBQKCVML6
Audited by: RALPH C. JOHNSON & CO PC
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on August 27, 2023. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by February 27, 2024 (914 days ago).
What is a management decision? →During our testing, we noted that the Project failed to make the required monthly deposits into the reserve for replacement for the year 2022. This is a repeat finding from the last four (4) years.Effect: The Project failed to make deposits to the reserve for replacement account as required by the Regulatory Agreement.Cause: Management indicated that the required monthly deposits to the reserve for replacement account were not made timely because of delays in receiving HUD rent payments.Recommendation: The Project should seek a waiver from HUD to suspend the required monthly reserve for replacement deposits or request a modification of the required monthly deposit amount.
Show full finding ▾Hide full finding ▴Program: Assistance Listing Number ? 14.157Section 202 Insured MortgageCFDA# and Program Expenditures 14.157 ($4,918,487)Award number NoneFederal Award Year January 1, 2021 to December 31, 2021Questioned Costs $28,068Criteria: The Regulatory Agreement, Housing for Elderly or Handicapped (Nonprofit) Section 202 of the Housing Act of 1959, in essence, stipulates that the Mortgagor will establish and maintain a reserve fund for replacement in a separate account in a bank which is insured by the Federal Deposit Insurance Corporation. The Mortgagor will deposit an amount which is stipulated by HUD monthly unless a different amount and date is approved in writing by HUD.Condition: During our testing, we noted that the Project failed to make the required monthly deposits into the reserve for replacement for the year 2022. This is a repeat finding from the last four (4) years.Effect: The Project failed to make deposits to the reserve for replacement account as required by the Regulatory Agreement.Cause: Management indicated that the required monthly deposits to the reserve for replacement account were not made timely because of delays in receiving HUD rent payments.Recommendation: The Project should seek a waiver from HUD to suspend the required monthly reserve for replacement deposits or request a modification of the required monthly deposit amount.
Finding No 2022-001Name of Responsible PartyFred GibbsFKGibbs Company, LLCPO Box 410312Kansas City, MO 64141Fred@fkgibbs.comM: 913.709.1811Views of Responsible Official and Corrective Action:The reserve deposits were only made when there was sufficient cash. As a result of delayed Housing Assistance Payments (HAP) and delayed Project Rental Assistance Contract (PRAC) renewal, which were caused by the Government shutdown. The deposit deficiency will be cured as cash flow permitExpected Date of Completion: Not determinable.
2021-001
FAC accepted this audit on July 24, 2022 — management decision was due January 24, 2023.
During our testing, we noted that the Project failed to make the required monthly deposits into the reserve for replacement for the year 2021. This is a repeat finding from 2020, 2019 and 2018. Effect: The Project failed to make deposits to the reserve for replacement account as required by the Regulatory Agreement. Cause: Management indicated that the required monthly deposits to the reserve for replacement account were not made timely because of delays in receiving HUD rent payments. Recommendation: The Project should seek a waiver from HUD to suspend the required monthly reserve for replacement deposits or request a modification of the required monthly deposit amount.
Show full finding ▾Hide full finding ▴Finding 2021-001 Federal Agency U>S> Department of Housing and Urban Development Program: Assistance Listing Number ? 14.157 Section 202 Insured Mortgage CFDA# and Program Expenditures 14.157 ($4,918,487) Award number None Federal Award Year January 1, 2021 to December 31, 2021 Questioned Costs $28,068 Criteria: The Regulatory Agreement, Housing for Elderly or Handicapped (Nonprofit) Section 202 of the Housing Act of 1959, in essence, stipulates that the Mortgagor will establish and maintain a reserve fund for replacement in a separate account in a bank which is insured by the Federal Deposit Insurance Corporation. The Mortgagor will deposit an amount which is stipulated by HUD monthly unless a different amount and date is approved in writing by HUD. Condition: During our testing, we noted that the Project failed to make the required monthly deposits into the reserve for replacement for the year 2021. This is a repeat finding from 2020, 2019 and 2018. Effect: The Project failed to make deposits to the reserve for replacement account as required by the Regulatory Agreement. Cause: Management indicated that the required monthly deposits to the reserve for replacement account were not made timely because of delays in receiving HUD rent payments. Recommendation: The Project should seek a waiver from HUD to suspend the required monthly reserve for replacement deposits or request a modification of the required monthly deposit amount.
Finding No 2021-01 Name of Responsible Party Fred Gibbs FKGibbs Company, LLC PO Box 410312 Kansas City, MO 64141 Fred@fkgibbs.com M: 913.709.1811 Views of Responsible Official and Corrective Action: The reserve deposits were only made when there was sufficient cash. As a result of delayed Housing Assistance Payments (HAP) and delayed Project Rental Assistance Contract (PRAC) renewal, which were caused by the Government shutdown. The deposit deficiency will be cured as cash flow permit Expected Date of Completion: Not determinable.
2020-001
FAC accepted this audit on April 26, 2021 — management decision was due October 26, 2021.
During our testing, we noted that the Project failed to make the required monthly deposits into the reserve for replacement for the year 2020. This is a repeat finding from 2019 and 2018.DESTINY TOWERSHUD PROJECT NUMBER 084-EE0072SCHEDULE OF FINDINGS AND QUESTIONED COSTSFOR THE YEAR ENDED DECEMBER 31, 2020(Continued)Effect: The Project failed to make deposits to the reserve for replacement account as required by the Regulatory Agreement.Cause: Management indicated that the required monthly deposits to the reserve for replacement account were not made timely because of delays in receiving HUD rent payments.Recommendation: The Project should seek a waiver from HUD to suspend the required monthly reserve for replacement deposits or request a modification of the required monthly deposit amount.Views of ResponsibleOfficial and Corrective ActionThe reserve deposits were only made when there was sufficient cash. As a result of delayed Housing Assistance Payments (HAP) and delayed Project Rental Assistance Contract (PRAC) renewal, which were caused by the Government shutdown. The deposit deficiency will be cured as cash flow permits.
Show full finding ▾Hide full finding ▴Finding 2020-01Program: CFDA ? 14.157Section 202 Insured MortgageU.S. Department of Housing and Urban DevelopmentCriteria: The Regulatory Agreement, Housing for Elderly or Handicapped (Nonprofit) Section 202 of the Housing Act of 1959, in essence, stipulates that the Mortgagor will establish and maintain a reserve fund for replacement in a separate account in a bank which is insured by the Federal Deposit Insurance Corporation. The Mortgagor will deposit an amount which is stipulated by HUD monthly unless a different amount and date is approved in writing by HUD.Condition: During our testing, we noted that the Project failed to make the required monthly deposits into the reserve for replacement for the year 2020. This is a repeat finding from 2019 and 2018.DESTINY TOWERSHUD PROJECT NUMBER 084-EE0072SCHEDULE OF FINDINGS AND QUESTIONED COSTSFOR THE YEAR ENDED DECEMBER 31, 2020(Continued)Effect: The Project failed to make deposits to the reserve for replacement account as required by the Regulatory Agreement.Cause: Management indicated that the required monthly deposits to the reserve for replacement account were not made timely because of delays in receiving HUD rent payments.Recommendation: The Project should seek a waiver from HUD to suspend the required monthly reserve for replacement deposits or request a modification of the required monthly deposit amount.Views of ResponsibleOfficial and Corrective ActionThe reserve deposits were only made when there was sufficient cash. As a result of delayed Housing Assistance Payments (HAP) and delayed Project Rental Assistance Contract (PRAC) renewal, which were caused by the Government shutdown. The deposit deficiency will be cured as cash flow permits.
Official and Corrective ActionThe reserve deposits were only made when there was sufficient cash. As a result of delayed Housing Assistance Payments (HAP) and delayed Project Rental Assistance Contract (PRAC) renewal, which were caused by the Government shutdown. The deposit deficiency will be cured as cash flow permits.
2019-001
FAC accepted this audit on April 15, 2020 — management decision was due October 15, 2020.
During our testing, we noted that the Project failed to make the required monthly deposits into the reserve for replacement for the year 2019. This is a repeat finding from 2018 and 2017. Effect: The Project failed to make deposits to the reserve for replacement account as required by the Regulatory Agreement. Cause: Management indicated that the required monthly deposits to the reserve for replacement account were not made timely because of delays in receiving HUD rent payments. Recommendation: The Project should seek a waiver from HUD to suspend the required monthly reserve for replacement deposits or request a modification of the required monthly deposit amount. Views of Responsible Official and Corrective Action The reserve deposits were only made when there was sufficient cash. As a result of delayed Housing Assistance Payments (HAP) and delayed Project Rental Assistance Contract (PRAC) renewal, which were caused by the Government shutdown. Partial deposits were made in 2019. The deposit deficiency will be cured as cash flow permits.
Show full finding ▾Hide full finding ▴FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Finding 2019-01 Program: CFDA ? 14.157 Section 202 Insured Mortgage U.S. Department of Housing and Urban Development Criteria: The Regulatory Agreement, Housing for Elderly or Handicapped (Nonprofit) Section 202 of the Housing Act of 1959, in essence, stipulates that the Mortgagor will establish and maintain a reserve fund for replacement in a separate account in a bank which is insured by the Federal Deposit Insurance Corporation. The Mortgagor will deposit an amount which is stipulated by HUD monthly unless a different amount and date is approved in writing by HUD. Condition: During our testing, we noted that the Project failed to make the required monthly deposits into the reserve for replacement for the year 2019. This is a repeat finding from 2018 and 2017. Effect: The Project failed to make deposits to the reserve for replacement account as required by the Regulatory Agreement. Cause: Management indicated that the required monthly deposits to the reserve for replacement account were not made timely because of delays in receiving HUD rent payments. Recommendation: The Project should seek a waiver from HUD to suspend the required monthly reserve for replacement deposits or request a modification of the required monthly deposit amount. Views of Responsible Official and Corrective Action The reserve deposits were only made when there was sufficient cash. As a result of delayed Housing Assistance Payments (HAP) and delayed Project Rental Assistance Contract (PRAC) renewal, which were caused by the Government shutdown. Partial deposits were made in 2019. The deposit deficiency will be cured as cash flow permits.
Views of Responsible Official and Corrective Action The reserve deposits were only made when there was sufficient cash. As a result of delayed Housing Assistance Payments (HAP) and delayed Project Rental Assistance Contract (PRAC) renewal, which were caused by the Government shutdown. Partial deposits were made in 2019. The deposit deficiency will be cured as cash flow permits.
2018-001
FAC accepted this audit on May 15, 2019 — management decision was due November 15, 2019.
GSA_MIGRATION
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GSA_MIGRATION
2017-001
FAC accepted this audit on June 19, 2018 — management decision was due December 19, 2018.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on April 19, 2017 — management decision was due October 19, 2017.
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