FAC Explorer

Audit 337474

FY End
2024-06-30
Total Expended
$4.03M
Findings
2
Programs
2
Organization: Ahepa 78 Phase Iv, Inc. (IN)
Year: 2024 Accepted: 2025-01-13
Auditor: Clark Schaefer Hackett & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
518995 2024-001 Significant Deficiency - N
1095437 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Section 202 Hud Capital Advance $3.78M Yes 1
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract $250,835 Yes 0

Contacts

Name Title Type
PZV3REM4J9U8 Mark Paul Auditee
3178453410 Jonah Colvin Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan capital advance outstanding balances Accounting Policies: 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of AHEPA 78 Phase IV, Inc. under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Since the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the Organization's financial position, changes in net assets, or cash flows. 2. Summary of Significant Accounting Policies (a) 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. (b) AHEPA 78 Phase IV, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate The outstanding balance of the HUD Capital Advance at June 30, 2024 with continuing compliance requirements which are reported as federal expenditures on the accompanying schedule of expenditures of federal awards was $3,778,400.

Finding Details

Finding 2024-001
S3800-010 Finding reference number 2024-001 S3800-011 Title and AL number of federal program Supportive Housing for the Elderly #14.157 S3800-015 Type of finding Federal Award Finding S3800-016 Finding resolution status Unresolved S3800-017 Information on universe population Not applicable S3800-018 Sample information Not applicable S3800-019 Identification of repeat finding and finding reference number Not applicable S3800-020 Criteria The Regulatory Agreement between HUD and the owner stipulates that HUD approval is required for cash advances to a related party. S3800-030 Statement of condition The Organization made an advance to a related party, AHEPA 78 Phase III, Inc., without HUD approval. S3800-032 Cause Cash needs of the related party non-profit HUD project. S3800-033 Effect or potential effect S3800-040 Questioned costs $4,420 S3800-037 Property associated with the finding 073-EE075 S3800-038 Questioned costs $4,420 S3800-045 Reporting views of responsible officials Management agrees S3800-080 Recommendation Management should monitor internal controls and receive HUD approval. S3800-090 Auditors' Summary of the Auditee's Comments on the Findings and Recommendations Management concurs S3800-130 Response indicator Agree S3800-140 Anticipated Completion Date 12/31/2024 S3800-150 Response The Organization made an advance to a related party, AHEPA 78 Phase III, Inc., without HUD approval. Cash may be unavailable to meet reasonable and necessary obligations of the project Management should monitor internal controls and receive HUD approval. The management agent will repay the funds on behalf of the related party housing project until that property has funds available, pending HUD approval.
Finding 2024-001
S3800-010 Finding reference number 2024-001 S3800-011 Title and AL number of federal program Supportive Housing for the Elderly #14.157 S3800-015 Type of finding Federal Award Finding S3800-016 Finding resolution status Unresolved S3800-017 Information on universe population Not applicable S3800-018 Sample information Not applicable S3800-019 Identification of repeat finding and finding reference number Not applicable S3800-020 Criteria The Regulatory Agreement between HUD and the owner stipulates that HUD approval is required for cash advances to a related party. S3800-030 Statement of condition The Organization made an advance to a related party, AHEPA 78 Phase III, Inc., without HUD approval. S3800-032 Cause Cash needs of the related party non-profit HUD project. S3800-033 Effect or potential effect S3800-040 Questioned costs $4,420 S3800-037 Property associated with the finding 073-EE075 S3800-038 Questioned costs $4,420 S3800-045 Reporting views of responsible officials Management agrees S3800-080 Recommendation Management should monitor internal controls and receive HUD approval. S3800-090 Auditors' Summary of the Auditee's Comments on the Findings and Recommendations Management concurs S3800-130 Response indicator Agree S3800-140 Anticipated Completion Date 12/31/2024 S3800-150 Response The Organization made an advance to a related party, AHEPA 78 Phase III, Inc., without HUD approval. Cash may be unavailable to meet reasonable and necessary obligations of the project Management should monitor internal controls and receive HUD approval. The management agent will repay the funds on behalf of the related party housing project until that property has funds available, pending HUD approval.