FAC Explorer

Audit 32803

FY End
2022-09-30
Total Expended
$1.17M
Findings
2
Programs
1
Organization: Lemko Housing Corporation (MD)
Year: 2022 Accepted: 2023-01-10
Auditor: Sc&h Attest Services PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33768 2022-001 Material Weakness - N
610210 2022-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.182 Section 8 New Construction and Substantial Rehabilitation $1.17M Yes 1

Contacts

Name Title Type
HLL4N5JBN115 Charles Peacock Auditee
4103427000 Andrea Hartman Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Lemko Housing Corporation under programs of the federal government for the year ended September30, 2022. 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 Lemko Housing Corporation, it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Lemko Housing Corporation. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Passthrough entity identifying numbers are presented where applicable. The Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Condition: The Corporation is delinquent in making deposits to the Reserve for Replacements as required by the Section 8 Contract. There are sixteen delinquent deposits totaling $32,000 as of September 30, 2022. Criteria: The Section 8 Contract requires monthly deposits of $2,000 to be made to the Reserve for Replacements. Cause: Management believed the monthly deposits were optional rather than mandatory. Effect: The Corporation is in violation of the Section 8 Contract. Recommendations: The Corporation should make the delinquent deposits as soon as possible and establish procedures to ensure the deposits are made on a monthly basis moving forward.
Finding 2022-001
Condition: The Corporation is delinquent in making deposits to the Reserve for Replacements as required by the Section 8 Contract. There are sixteen delinquent deposits totaling $32,000 as of September 30, 2022. Criteria: The Section 8 Contract requires monthly deposits of $2,000 to be made to the Reserve for Replacements. Cause: Management believed the monthly deposits were optional rather than mandatory. Effect: The Corporation is in violation of the Section 8 Contract. Recommendations: The Corporation should make the delinquent deposits as soon as possible and establish procedures to ensure the deposits are made on a monthly basis moving forward.