Audit 360130

FY End
2024-06-30
Total Expended
$6.86M
Findings
2
Programs
1
Year: 2024 Accepted: 2025-06-26
Auditor: Cbiz CPAS PC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
567592 2024-002 Significant Deficiency Yes N
1144034 2024-002 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $6.86M Yes 1

Contacts

Name Title Type
WC5SL6NUWNW8 Mark Enselman Auditee
2127802300 Matthew Estersohn Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation 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 elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Alliance Apartments Housing Development Fund Co., Inc. (the “Company”) 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 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.
Title: Summary of Significant Accounting Policies 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 elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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.
Title: US Department of Housing and Urban Development Loan Program 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 elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Company has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Alliance Apartments Housing Development Fund Co., Inc. received no additional loans during the year. The balance of the loan outstanding at June 30, 2024 consists of: Outstanding Balance: $6,014,200 FALN: 14.157, Program Name: Section 202 Capital Advances.
Title: Indirect Cost Rates 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 elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Company has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Federal Award Findings and Questioned Costs Finding No. 2024-002 (Assistance Listing Number 14.157 – Section 202 – Supportive Housing for the Elderly) (Significant Deficiency) Condition: For one of two disbursements made from the replacement reserve account during 2023, HUD approved a loan from the replacement reserve while other HUD receivables remained outstanding. As a condition, Alliance Apartment Housing Development Fund Co., Inc. was required to repay the loan once the receivables were collected. The receivables were collected from HUD in late June 2023, but the loan was not repaid. Criteria: Disbursements from the replacement reserve account must be approved by HUD and used for the approved purpose. Questioned Costs: None Cause: Management did not deposit the loan proceeds back into the replacement reserve on a timely basis after HUD receivables were collected. Effect: The replacement reserve was not replenished as intended by HUD. Identification as a Repeat Finding: Yes, finding 2023-002 Recommendation: We recommend that management restore the replacement reserve to the correct balance and implement controls to ensure that HUD conditions on reserve disbursements are complied with. Views of Responsible Officials: We have requested HUD approval to delay reimbursement of the reserves pending receipt of Budget Based Rent increase. We anticipate that this will be approved.
Federal Award Findings and Questioned Costs Finding No. 2024-002 (Assistance Listing Number 14.157 – Section 202 – Supportive Housing for the Elderly) (Significant Deficiency) Condition: For one of two disbursements made from the replacement reserve account during 2023, HUD approved a loan from the replacement reserve while other HUD receivables remained outstanding. As a condition, Alliance Apartment Housing Development Fund Co., Inc. was required to repay the loan once the receivables were collected. The receivables were collected from HUD in late June 2023, but the loan was not repaid. Criteria: Disbursements from the replacement reserve account must be approved by HUD and used for the approved purpose. Questioned Costs: None Cause: Management did not deposit the loan proceeds back into the replacement reserve on a timely basis after HUD receivables were collected. Effect: The replacement reserve was not replenished as intended by HUD. Identification as a Repeat Finding: Yes, finding 2023-002 Recommendation: We recommend that management restore the replacement reserve to the correct balance and implement controls to ensure that HUD conditions on reserve disbursements are complied with. Views of Responsible Officials: We have requested HUD approval to delay reimbursement of the reserves pending receipt of Budget Based Rent increase. We anticipate that this will be approved.