FAC Explorer

Audit 337482

FY End
2024-06-30
Total Expended
$5.84M
Findings
2
Programs
2
Organization: Ahepa West Palm Beach, Inc. (FL)
Year: 2024 Accepted: 2025-01-13
Auditor: Clark Schaefer Hackett & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
518998 2024-001 Material Weakness - N
1095440 2024-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Section 202 Hud Capital Advance $5.11M Yes 1
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract $732,458 Yes 0

Contacts

Name Title Type
X6EHFYVN3PN3 Mark Paul Auditee
3178453410 Jonah Colvin Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee 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 West Palm Beach, 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 West Palm Beach, 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 $5,110,500.

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 Financial Statement and Federal Award Finding S3800-016 Finding resolution status Resolved S3800-017 Information on universe population n/a S3800-018 Sample information n/a S3800-019 Identification of repeat finding and finding reference number n/a S3800-020 Criteria The Management Agent Certification between HUD and the owner stipulates the required HUD approved management fee. S3800-030 Statement of condition The Organization paid the management fee based on the previous owner's approved rate. The Organization's internal control over compliance did not timely detected and corrected this overpayment. S3800-032 Cause Management did not identify the new HUD approved rate timely as part of the transfer of physical assets. S3800-033 Effect or potential effect Cash may be unavailable to meet reasonable and necessary capital obligations of the project. S3800-035 Auditor non-compliance code J - Unauthorized Management Fees S3800-040 Questioned costs $82,053 S3800-037 Property associated with the finding 066-EE023 S3800-038 Questioned costs $82,053 S3800-045 Reporting views of responsible officials Management agrees and will work on implementing changes in agreements in a timely manner. S3800-050 Context n/a S3800-080 Recommendation Management should monitor internal controls over compliance. 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 December 3, 2024 S3800-150 Response Management repaid the excess management fee back to the property.
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 Financial Statement and Federal Award Finding S3800-016 Finding resolution status Resolved S3800-017 Information on universe population n/a S3800-018 Sample information n/a S3800-019 Identification of repeat finding and finding reference number n/a S3800-020 Criteria The Management Agent Certification between HUD and the owner stipulates the required HUD approved management fee. S3800-030 Statement of condition The Organization paid the management fee based on the previous owner's approved rate. The Organization's internal control over compliance did not timely detected and corrected this overpayment. S3800-032 Cause Management did not identify the new HUD approved rate timely as part of the transfer of physical assets. S3800-033 Effect or potential effect Cash may be unavailable to meet reasonable and necessary capital obligations of the project. S3800-035 Auditor non-compliance code J - Unauthorized Management Fees S3800-040 Questioned costs $82,053 S3800-037 Property associated with the finding 066-EE023 S3800-038 Questioned costs $82,053 S3800-045 Reporting views of responsible officials Management agrees and will work on implementing changes in agreements in a timely manner. S3800-050 Context n/a S3800-080 Recommendation Management should monitor internal controls over compliance. 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 December 3, 2024 S3800-150 Response Management repaid the excess management fee back to the property.