FAC Explorer

Audit 325764

FY End
2023-06-30
Total Expended
$6.02M
Findings
2
Programs
1
Organization: Cornerstone Property Ventures, LLC (VA)
Year: 2023 Accepted: 2024-10-24
Auditor: Wall Einhorn & Chernitzer PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
503594 2023-001 Material Weakness - L
1080036 2023-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $6.02M Yes 1

Contacts

Name Title Type
NA68YGMFPXS7 Jessica Guglielmo Auditee
7575002745 Angela Kerns Auditor
No contacts on file

Notes to SEFA

Title: FEDERALLY FUNDED AND INSURED MORTGAGES Accounting Policies: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (the `Schedule`) includes the federal grant activity of the Company under programs of the federal government as of and for the period November 22, 2022 through 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 the Company, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Company. 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. De Minimis Rate Used: N Rate Explanation: The Company has not elected to use the 10-percent de minimis indirect cost rate under the Uniform Guidance. The mortgage balance at the beginning of the period and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of the outstanding federally insured mortgage at June 30, 2023 is $5,984,275.

Finding Details

Finding 2023-001
**Criteria: In accordance with the HUD Regulatory Agreement, the property is required to submit a financial report in accordance with accounting principles generally accepted in the United States of America within 90 days following the end of the fiscal year. **Condition: The Company did not issue required financial reports within the deadline. **Cause: Management was unaware of the filing requirements due to significant turnover in key positions. In addition, due to the significant turnover, the monthly reporting and closing cycle did not function properly to ensure account balances were reconciled timely and accurately. **Effect or potential effect: The Company is not in compliance with the HUD Regulatory Agreement. **Recommendation: Management should implement controls over financial reporting to ensure reports are filed in a timely manner. **Perspective: N/A **Questioned costs: N/A **Views of responsible officials: Auditee agrees with auditor finding and has implemented controls to ensure financial reports are submitted in accordance with the HUD Regulatory Agreement. **Auditor’s evaluation of the views of responsible officials: Management’s response is appropriate to address the noncompliance that occurred.
Finding 2023-001
**Criteria: In accordance with the HUD Regulatory Agreement, the property is required to submit a financial report in accordance with accounting principles generally accepted in the United States of America within 90 days following the end of the fiscal year. **Condition: The Company did not issue required financial reports within the deadline. **Cause: Management was unaware of the filing requirements due to significant turnover in key positions. In addition, due to the significant turnover, the monthly reporting and closing cycle did not function properly to ensure account balances were reconciled timely and accurately. **Effect or potential effect: The Company is not in compliance with the HUD Regulatory Agreement. **Recommendation: Management should implement controls over financial reporting to ensure reports are filed in a timely manner. **Perspective: N/A **Questioned costs: N/A **Views of responsible officials: Auditee agrees with auditor finding and has implemented controls to ensure financial reports are submitted in accordance with the HUD Regulatory Agreement. **Auditor’s evaluation of the views of responsible officials: Management’s response is appropriate to address the noncompliance that occurred.