FAC Explorer

Audit 373159

FY End
2024-12-31
Total Expended
$1.84M
Findings
1
Programs
3
Organization: Catholic Housing Corporation of Northern Berks County (PA)
Year: 2024 Accepted: 2025-12-05
Auditor: WITHUMSMITH+BROWN PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1163513 2024-002 Material Weakness Yes ABCEN

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $1.44M Yes 1
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $395,814 Yes 0
14.191 MULTIFAMILY HOUSING SERVICE COORDINATORS $13,476 Yes 0

Contacts

Name Title Type
LKTUAV7LD723 David Fazio Auditee
6108655595 Brian Page Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Catholic Housing Corporation of Northern Berks County d/b/a Queen of Angels Apartments (the "Organization") and is prepared using the accrual basis of accounting.
The information in the 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"). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Organization has an outstanding loan balance of $1,381,057 with continuing compliance requirements under the U.S. Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinance of Existing Multi-Family Housing Projects.
The Organization did not pass through any federal funds to subrecipients for the year ended December 31, 2024.

Finding Details

Finding 2024-002
Section 3 - Major Federal Awards Findings and Questioned Costs Finding No.: 2024-002: Failure to Make the Required Residual Receipt Deposit Timely Information on the Federal Program: U.S. Housing of Urban Development (HUD) -14.155 Mortgage Insurance for the Purchase or Refinance of Existing Multi-Family Housing Projects; January 1, 2024 – December 31, 2024 Finding Type: Significant Deficiency Criteria: Per the regulatory agreement, the Organization must calculate surplus cash as of the last day of the fiscal year. Surplus cash is required to be deposited within 90 days after the close of the fiscal year. Condition and Context: Based on the testing performed, the Organization did not deposit the required residual receipts deposit of $231,740 within 90 days after the close of the fiscal year. Cause: The Organization had significant turnover in its finance department and did not make the necessary deposit. Effect or Potential Effect: The required deposit was not timely made on a timely basis. Questioned Costs: $231,740 Recommendation: The Organization should ensure that amounts due to residual receipts are made as soon as possible and should implement controls to ensure compliance with the required deposit timing. Management’s Response: Management will initiate controls to ensure that the funds from the calculation of the prior year surplus cash calculation are deposited in the residual receipts reserve for the year ended December 31, 2025. Planned Implementation Date of Corrective Action: September 2025 Person Responsible for Corrective Action: David Fazio, Director of Finance