Audit 362020

FY End
2024-06-30
Total Expended
$1.78M
Findings
2
Programs
2
Year: 2024 Accepted: 2025-07-11
Auditor: Maner Costerisan

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
571129 2024-001 Significant Deficiency - N
1147571 2024-001 Significant Deficiency - N

Contacts

Name Title Type
UENBGHE22YD3 David Gerchak Auditee
5179083796 Keith Pfeifle 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. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Grange Acres Nonprofit Housing Corporation (Phase II) has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Grange Acres Nonprofit Housing Corporation (Phase II), HUD Project No. 047-35019 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 Grange Acres Nonprofit Housing Corporation (Phase II), it is not intended to and does not present the financial position, changes in net assets or cash flows of Grange Acres Nonprofit Housing Corporation (Phase II).
Title: SUMMARY OF SIGNIFICANT ACCOUNTING 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. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Grange Acres Nonprofit Housing Corporation (Phase II) has elected not to use the 10-percent de minimis indirect cost rate 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. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Grange Acres Nonprofit Housing Corporation (Phase II) has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: U.S. 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. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Grange Acres Nonprofit Housing Corporation (Phase II) has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Grange Acres Nonprofit Housing Corporation (Phase II) has received a U.S. Department of Housing and Urban Development direct loan under Section 223(f) of the National Housing Act. The loan balance at the beginning of the year is included in the federal expenditures presented in the Schedule. Grange Acres Nonprofit Housing Corporation (Phase II) received no additional loans during the year. The balance of the loan consists of: Program Name ALN Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects 14.155 $ 1,062,041

Finding Details

Finding Number 2024-001: Significant Deficiency in Internal Control over Major Federal Program Compliance: Special Tests and Provisions - Residual Receipts Requirements Federal Program: U.S. Department of Housing and Urban Development ALN 14.155 - Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Condition: The Project did not make the required residual receipt deposits in the amount $174,928 for the year ending June 30, 2023. Criteria: Project management is responsible for depositing funds into the residual receipts account when a surplus cash amount is calculated within 90 days after the close of the fiscal year. Effect: The surplus cash amount was not deposited therefore making the balance in the residual receipts account understated and not correctly showing amount subject to HUD recapture. Cause: Procedures to deposit surplus cash into the residual receipts account were not followed. Recommendation: The Project should deposit $174,928 into the residual receipts account. Additionally, procedures should be followed to ensure management identifies the need for required deposits. Auditor noncompliance code: B - Failure to make required residual receipts deposits.
Finding Number 2024-001: Significant Deficiency in Internal Control over Major Federal Program Compliance: Special Tests and Provisions - Residual Receipts Requirements Federal Program: U.S. Department of Housing and Urban Development ALN 14.155 - Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Condition: The Project did not make the required residual receipt deposits in the amount $174,928 for the year ending June 30, 2023. Criteria: Project management is responsible for depositing funds into the residual receipts account when a surplus cash amount is calculated within 90 days after the close of the fiscal year. Effect: The surplus cash amount was not deposited therefore making the balance in the residual receipts account understated and not correctly showing amount subject to HUD recapture. Cause: Procedures to deposit surplus cash into the residual receipts account were not followed. Recommendation: The Project should deposit $174,928 into the residual receipts account. Additionally, procedures should be followed to ensure management identifies the need for required deposits. Auditor noncompliance code: B - Failure to make required residual receipts deposits.