FAC Explorer

Audit 338151

FY End
2024-06-30
Total Expended
$5.49M
Findings
2
Programs
2
Organization: Ahepa 310-Xii, Inc. (AL)
Year: 2024 Accepted: 2025-01-15
Auditor: Clark Schaefer Hackett & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
519309 2024-001 Significant Deficiency - N
1095751 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly - Section 202 Hud Capital Advance $5.32M Yes 1
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract $169,890 Yes 0

Contacts

Name Title Type
CQK6VK27KZ46 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 310-XII, 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 310-XII, 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 $5,323,700.

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 Resolved 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 replacement reserve withdrawals. S3800-030 Statement of condition The Organization made a withdrawal of $12,711 that was not approved by HUD from the replacement reserve account that was not timely detected and corrected by the Organization's internal control. S3800-032 Cause Management did not request HUD approval and duplicated a past HUD approved withdrawal. 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 A - Unauthorized withdrawals from replacement S3800-040 Questioned costs $0 S3800-037 Property associated with the finding 062EE089 S3800-038 Questioned costs $0 S3800-045 Reporting views of responsible Management agrees. S3800-050 Context There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. S3800-080 Recommendation Management should monitor internal controls over compliance and receive HUD approval before distributions from the replacement reserve account are authorized. S3800-090 Auditors' Summary of the Auditee's Comments on the Findings and Management concurs S3800-130 Response indicator Agree S3800-140 Anticipated Completion Date September 30, 2024 S3800-150 Response Management has transferred the funds into the replacement reserve account.
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 Resolved 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 replacement reserve withdrawals. S3800-030 Statement of condition The Organization made a withdrawal of $12,711 that was not approved by HUD from the replacement reserve account that was not timely detected and corrected by the Organization's internal control. S3800-032 Cause Management did not request HUD approval and duplicated a past HUD approved withdrawal. 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 A - Unauthorized withdrawals from replacement S3800-040 Questioned costs $0 S3800-037 Property associated with the finding 062EE089 S3800-038 Questioned costs $0 S3800-045 Reporting views of responsible Management agrees. S3800-050 Context There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. S3800-080 Recommendation Management should monitor internal controls over compliance and receive HUD approval before distributions from the replacement reserve account are authorized. S3800-090 Auditors' Summary of the Auditee's Comments on the Findings and Management concurs S3800-130 Response indicator Agree S3800-140 Anticipated Completion Date September 30, 2024 S3800-150 Response Management has transferred the funds into the replacement reserve account.