FAC Explorer

Audit 305426

FY End
2023-04-30
Total Expended
$3.35M
Findings
4
Programs
2
Organization: Gallagher Mansion, INC (MD)
Year: 2023 Accepted: 2024-05-03
Auditor: Pkf O'Connor Davies LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
395805 2023-001 Significant Deficiency - L
395806 2023-002 Significant Deficiency - N
972247 2023-001 Significant Deficiency - L
972248 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $500,000 - 0
14.157 Supportive Housing for Persons with Disabilities $359,470 Yes 0

Contacts

Name Title Type
WLKDR8UCBHY6 Nichole Battle Auditee
4104332442 Stewart Grubman Auditor
No contacts on file

Notes to SEFA

Title: Loan/Loan Guartee 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 Gallagher Mansion, Inc. the Entity under programs of the federal government for the year ended April 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, change in net assets or cash flows of the Entity. De Minimis Rate Used: N Rate Explanation: 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 Federal Assistance Listing Number 14.157 Supportive Housing for the elderly, Outstanding Balance $2,488,800 and Federal Assistance Listing Number 14.239 HOME Investment Partnership, Outstanding Balance $500,000. Total Outstanding Balance $2,988,000.
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 Gallagher Mansion, Inc. the Entity under programs of the federal government for the year ended April 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, change in net assets or cash flows of the Entity. De Minimis Rate Used: N Rate Explanation: 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 202 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
Finding 2023-001: Supportive Housing for the Elderly; CFDA 14.157 Information on the Universe Population Size All regulatory reporting. Sample Size Information All regulatory reporting. Criteria The Uniform Guidance requires auditees to submit a completed Standard Form Single Audit Collection (SF-SAC) along with other specified reports, to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days after receipt of the auditor’s reports, or nine months after the end of the audit period. The Real Estate Assessment Center’s (“REAC”) Audited Financial Statement submission is required to be filed by the extended due date of January 31, 2024. Statement of Condition The Entity’s Uniform Guidance submission to the FAC and REAC submissions were not filed timely. Cause Change in managing agent during the fiscal year. Effect or Potential Effect The failure to submit the SF-SAC and REAC on a timely basis caused the Entity to be noncompliant with the reporting requirements. The Entity may incur fines and penalties. Auditor Non-Compliance Code L – Reporting Questioned Costs There were no known questioned costs. Recommendation We recommend that the Entity ensure timely filing in accordance with reporting requirements. Repeat Finding No Views of Responsible officials See corrective action plan.
Finding 2023-002
Finding 2023-002: Supportive Housing for the Elderly; CFDA 14.157 Information on the Universe Population Size 12 monthly payments. Sample Size Information 12 monthly payments. Criteria The regulatory agreement requires monthly payments to fund the replacement reserve. Statement of Condition Two monthly payments were not made to the replacement reserve during the year. Cause Change in managing agent during the fiscal year. Effect or Potential Effect The replacement reserve was underfunded by a total of $1,698. Auditor Non-Compliance Code N – Reserve for Replacements Deposits Questioned Costs There were no known questioned costs. Recommendation We recommend that the Entity reinstate a system of monthly transfers to the account. Repeat Finding No Views of Responsible officials See corrective action plan.
Finding 2023-001
Finding 2023-001: Supportive Housing for the Elderly; CFDA 14.157 Information on the Universe Population Size All regulatory reporting. Sample Size Information All regulatory reporting. Criteria The Uniform Guidance requires auditees to submit a completed Standard Form Single Audit Collection (SF-SAC) along with other specified reports, to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days after receipt of the auditor’s reports, or nine months after the end of the audit period. The Real Estate Assessment Center’s (“REAC”) Audited Financial Statement submission is required to be filed by the extended due date of January 31, 2024. Statement of Condition The Entity’s Uniform Guidance submission to the FAC and REAC submissions were not filed timely. Cause Change in managing agent during the fiscal year. Effect or Potential Effect The failure to submit the SF-SAC and REAC on a timely basis caused the Entity to be noncompliant with the reporting requirements. The Entity may incur fines and penalties. Auditor Non-Compliance Code L – Reporting Questioned Costs There were no known questioned costs. Recommendation We recommend that the Entity ensure timely filing in accordance with reporting requirements. Repeat Finding No Views of Responsible officials See corrective action plan.
Finding 2023-002
Finding 2023-002: Supportive Housing for the Elderly; CFDA 14.157 Information on the Universe Population Size 12 monthly payments. Sample Size Information 12 monthly payments. Criteria The regulatory agreement requires monthly payments to fund the replacement reserve. Statement of Condition Two monthly payments were not made to the replacement reserve during the year. Cause Change in managing agent during the fiscal year. Effect or Potential Effect The replacement reserve was underfunded by a total of $1,698. Auditor Non-Compliance Code N – Reserve for Replacements Deposits Questioned Costs There were no known questioned costs. Recommendation We recommend that the Entity reinstate a system of monthly transfers to the account. Repeat Finding No Views of Responsible officials See corrective action plan.