Audit 293469

FY End
2023-06-30
Total Expended
$6.55M
Findings
2
Programs
3
Organization: Alpha Arms, Inc. 053-36033 (NC)
Year: 2023 Accepted: 2024-03-05

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
372172 2023-001 - - N
948614 2023-001 - - N

Contacts

Name Title Type
XVKQBH9N8UK1 Michael Jameyson Auditee
7047711696 Jay Sharpe Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation: Accounting Policies: Summary of significant 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. The Organization has elected to not use the 10% de minimums indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected to not use the 10% de minimums indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of federal awards ("schedule") includes the federal award and loan activity of the Organization 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"). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: Summary of significant accounting policies: Accounting Policies: Summary of significant 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. The Organization has elected to not use the 10% de minimums indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected to not use the 10% de minimums indirect cost rate allowed under the Uniform Guidance. 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. The Organization has elected to not use the 10% de minimums indirect cost rate allowed under the Uniform Guidance.
Title: Subrecipients: Accounting Policies: Summary of significant 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. The Organization has elected to not use the 10% de minimums indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected to not use the 10% de minimums indirect cost rate allowed under the Uniform Guidance. For the year ended June 30, 2023, the Organization provided no funds to subrecipients.
Title: Mortgage Balance: Accounting Policies: Summary of significant 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. The Organization has elected to not use the 10% de minimums indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected to not use the 10% de minimums indirect cost rate allowed under the Uniform Guidance. The Organization received a loan under Section 223(f) pursuant to the National Housing Act. The mortgage balance outstanding at the beginning of the year was $5,400,559. The Organization received no additional loans during the fiscal year and the mortgage balance at June 30, 2023 was $5,292,433.

Finding Details

Criteria: PHA or owner must perform housing quality inspections at the time of initial occupancy and at least annually thereafter to ensure that the units are decent, safe, and sanitary. Condition: The property has not performed annual inspections since 2021. Effect: The property was in violation of the HUD requirements associated with quality inspections. Cause: The maintenance employee who typically performed the inspections was on leave since 2021 and the property has not found a replacement. Recommendation: The property should perform quarterly inspections or at least annually as required by HUD.
Criteria: PHA or owner must perform housing quality inspections at the time of initial occupancy and at least annually thereafter to ensure that the units are decent, safe, and sanitary. Condition: The property has not performed annual inspections since 2021. Effect: The property was in violation of the HUD requirements associated with quality inspections. Cause: The maintenance employee who typically performed the inspections was on leave since 2021 and the property has not found a replacement. Recommendation: The property should perform quarterly inspections or at least annually as required by HUD.