FAC Explorer

Audit 300807

FY End
2023-06-30
Total Expended
$1.06M
Findings
2
Programs
1
Organization: Stansbury Homes, INC (MD)
Year: 2023 Accepted: 2024-03-29
Auditor: Pkf O'Connor Davies LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
389914 2023-001 - - N
966356 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $128,228 Yes 0

Contacts

Name Title Type
YEMHR7NKKSA8 Kelly Savoca Auditee
4102072092 Stewart Grubman Auditor
No contacts on file

Notes to SEFA

Title: Loans/Loans Guarantee Outstanding Balance Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the “Schedule”) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Schedule includes the federal award activity of Stansbury Homes, Inc. (the “Entity”) 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 the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Entity, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Entity. De Minimis Rate Used: N Rate Explanation: The Entity has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Entity is reimbursed for programmatic and administrative costs in accordance with rules set forth by the U.S. Department of Housing and Urban Development. Balance of loan outstanding at June 30, 2023 as follows: Federal Assistance Listing Number 14.181 Supporting Housing for Persons with Disabilities - Capital Advance Program is $931,500.
Title: Federal Loan Program Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the “Schedule”) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Schedule includes the federal award activity of Stansbury Homes, Inc. (the “Entity”) 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 the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Entity, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Entity. De Minimis Rate Used: N Rate Explanation: The Entity has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Entity is reimbursed for programmatic and administrative costs in accordance with rules set forth by the U.S. Department of Housing and Urban Development. The Entity received a U.S. Department of Housing and Urban Development Capital Advance under Section 811 of the National Affordable Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Entity received no additional loans during the year.

Finding Details

Finding 2023-001
Section III – Federal Award Findings and Questioned Costs (continued) Finding No. 2023-001 – Timely Deposit of Surplus Cash Federal Assistance Listing Number Name of Federal Program or Cluster 14.181 Supportive Housing for Persons with Disabilities Information on the Universe Population Size One (1) surplus cash deposit Sample Size Information One (1) surplus cash deposit Identification of Repeat Finding Reference Number None noted Criteria The regulatory agreement required surplus cash payments to be deposited in the residual receipts reserve within 90 days of the fiscal year end. Statement of Condition The fiscal year2022 required surplus cash deposit of $17,660 was not made within 90 days of the fiscal year end. Cause The cause of the late payment was due to management oversight. Effect or Potential Effect The requirement to deposit surplus cash within 90 days of the fiscal year end was not met. Auditor Non-Compliance Code B- Failure to make required residual receipts account Questioned Costs There were no known questioned costs. Perspective The finding represents an isolated instance of management oversight. Reporting Views of Responsible officials Auditee made a deposit into the residual receipts account to fully fund the account based on FY2022 surplus cash, and will establish a system to ensure the surplus cash is deposited within 90 days of the fiscal year end going forward. Repeat finding No Recommendations Auditor recommends that management ensure the surplus cash deposit is done timely in the future. Auditors’ Summary of the Auditees’ Comments on the Findings and Recommendations Management agrees with the finding and had made the required deposit in October 2022.
Finding 2023-001
Section III – Federal Award Findings and Questioned Costs (continued) Finding No. 2023-001 – Timely Deposit of Surplus Cash Federal Assistance Listing Number Name of Federal Program or Cluster 14.181 Supportive Housing for Persons with Disabilities Information on the Universe Population Size One (1) surplus cash deposit Sample Size Information One (1) surplus cash deposit Identification of Repeat Finding Reference Number None noted Criteria The regulatory agreement required surplus cash payments to be deposited in the residual receipts reserve within 90 days of the fiscal year end. Statement of Condition The fiscal year2022 required surplus cash deposit of $17,660 was not made within 90 days of the fiscal year end. Cause The cause of the late payment was due to management oversight. Effect or Potential Effect The requirement to deposit surplus cash within 90 days of the fiscal year end was not met. Auditor Non-Compliance Code B- Failure to make required residual receipts account Questioned Costs There were no known questioned costs. Perspective The finding represents an isolated instance of management oversight. Reporting Views of Responsible officials Auditee made a deposit into the residual receipts account to fully fund the account based on FY2022 surplus cash, and will establish a system to ensure the surplus cash is deposited within 90 days of the fiscal year end going forward. Repeat finding No Recommendations Auditor recommends that management ensure the surplus cash deposit is done timely in the future. Auditors’ Summary of the Auditees’ Comments on the Findings and Recommendations Management agrees with the finding and had made the required deposit in October 2022.