FAC Explorer

Audit 374060

FY End
2024-12-31
Total Expended
$2.79M
Findings
4
Programs
1
Organization: Catholic Housing Corporation of Lansford (PA)
Year: 2024 Accepted: 2025-12-11
Auditor: WITHUMSMITH+BROWN PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1164483 2024-002 Material Weakness Yes ABCEN
1164484 2024-002 Material Weakness Yes ABCEN
1164485 2024-003 Material Weakness Yes ABCEN
1164486 2024-003 Material Weakness Yes ABCEN

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $109,323 Yes 2

Contacts

Name Title Type
QMQ6AMDGZKP3 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 Lansford d/b/a St. Ann Senior 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 capital advance of $2,675,900 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
Finding No.: 2024-002: Failure to Make the Required Replacement Reserve Deposits Information on the Federal Program: U.S. Housing of Urban Development (HUD) - 14.157 Supportive Housing for Elderly. Finding Type: Significant Deficiency and Non-Compliance Criteria: The Organization, in accordance with the Regulatory Agreement, is required to maintain a reserve for replacements. The required minimum monthly deposit into this account is $892 for the year ended December 31, 2024. Condition and Context: For the year ended December 31, 2024 , a total of $26,760 ($16,056 pertaining to prior years and $10,704 pertaining to 2024) was to be deposited into the replacement reserve account. However, only $3,568 was deposited. Cause: Due to turnover in the accounting department staff, the required monthly deposits were not made in a timely fashion. Effect or Potential Effect: The Organization did not make the deposits into the replacement reserve account as required by the Regulatory Agreement. Questioned Costs: None Recommendation: The Organization should have procedures in place to ensure all required monthly deposits are made to the reserve for replacements. Management’s Response: Management agrees with the finding above. Both the CEO and Director of Finance have been replaced by a new transitional CEO and Director of Finance and they will review the existing accounting policies and procedures and implement appropriate procedures and controls to incorporate the recommendations above. Planned Implementation Date of Corrective Action: December 2025 Person Responsible for Corrective Action: David Fazio, Director of Finance
Finding 2024-003
Finding No.: 2024-003: Special Tests and Provisions – Project Funds Information on the Federal Program: U.S. Housing of Urban Development (HUD) - 14.157 Supportive Housing for Elderly. Finding Type: Significant Deficiency Criteria: In accordance with 24 CFR 891.400(e), a separate interest-bearing project fund account shall be maintained in a depository or depositories which are members of the Federal Deposit Insurance Corporation or National Credit Union Share Insurance Fund and all tenant payments, charges, income and revenues arising from project operation or ownership shall be deposited to this account. Condition and Context: During our testing, we noted that the project fund account used by the Organization was not an interest-bearing account. Cause: Subsequent to the initial rental assistance contract, changes to HUD regulations resulted in the requirement that the project fund account be an interest-bearing account. This change was an oversight by the Organization’s management. Effect or Potential Effect: Project funds would not earn interest in accordance with HUD requirements. Questioned Costs: None Recommendation: We recommend that the Organization utilize an interest-bearing account for project funds in accordance with HUD requirements. Management’s Response: Although the Corporation does not currently use an interest-bearing account for project funds, due to the ongoing operation of the program and continuous activity within the project funds account, any interest earned in such an account would be negligible. Management is in the process of evaluating this recommendation to determine the appropriate course of action. Planned Implementation Date of Corrective Action: December 2025 Person Responsible for Corrective Action: David Fazio, Director of Finance