FAC Explorer

Audit 15464

FY End
2023-06-30
Total Expended
$1.57M
Findings
2
Programs
1
Organization: Arch V Housing Development Corporation (PA)
Year: 2023 Accepted: 2024-02-05
Auditor: McKonly & Asbury LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
11630 2023-001 Significant Deficiency - E
588072 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.57M Yes 1

Contacts

Name Title Type
DBENY4DCRRE5 Michon Dinwoodie Auditee
2155578414 James P. Shellenberger Auditor
No contacts on file

Notes to SEFA

Title: 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. De Minimis Rate Used: N Rate Explanation: Arch V HDC has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying combining schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Arch V HDC under programs of the federal government for the year ended June 30, 2023. 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 Arch V HDC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Arch V HDC.
Title: 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. De Minimis Rate Used: N Rate Explanation: Arch V HDC has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Arch V HDC has received U.S. Department of Housing and Urban Development direct loans and loans passed through the Philadelphia Redevelopment Authority. The loan balances outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Arch V HDC received no additional loans during the year. The balance of the loans outstanding at June 30, 2023: "See the Notes to the SEFA for chart/table".

Finding Details

Finding 2023-001
Criteria: Management should have an internal control system in place to ensure compliance requirements of the HUD program are completed and reviewed in a timely manner. Condition: Management did not timely update recertifications and requests to HUD for tenant assistance payments for six of the ten tenants sampled. Five tenant assistance payments were subsequently adjusted on the HAP voucher. Cause: A lack of oversight and review as a result of resource constraints over internal controls over recertifications resulted in delays to timely completion of recertification requirements. Effect or potential effect: Lack of oversight of regulatory requirements could increase the risk of loss of funding and default on the HUD loan. Recommendation: Management should provide adequate resources to ensure internal control over compliance is maintained. Staff should receive necessary compliance training, and those charged with governance review compliance periodically during the year. Questioned costs: None identified. Views of responsible officials: Management is reviewing the internal controls over compliance of all HUD programs to ensure appropriate procedures are in place. Additionally, Management will be closely monitoring the timeliness of recertification to ensure accuracy in the HAP voucher.
Finding 2023-001
Criteria: Management should have an internal control system in place to ensure compliance requirements of the HUD program are completed and reviewed in a timely manner. Condition: Management did not timely update recertifications and requests to HUD for tenant assistance payments for six of the ten tenants sampled. Five tenant assistance payments were subsequently adjusted on the HAP voucher. Cause: A lack of oversight and review as a result of resource constraints over internal controls over recertifications resulted in delays to timely completion of recertification requirements. Effect or potential effect: Lack of oversight of regulatory requirements could increase the risk of loss of funding and default on the HUD loan. Recommendation: Management should provide adequate resources to ensure internal control over compliance is maintained. Staff should receive necessary compliance training, and those charged with governance review compliance periodically during the year. Questioned costs: None identified. Views of responsible officials: Management is reviewing the internal controls over compliance of all HUD programs to ensure appropriate procedures are in place. Additionally, Management will be closely monitoring the timeliness of recertification to ensure accuracy in the HAP voucher.