FAC Explorer

Audit 374286

FY End
2025-06-30
Total Expended
$1.76M
Findings
1
Programs
2
Organization: Stoneboro Development Corporation 033-11048 (PA)
Year: 2025 Accepted: 2025-12-12
Auditor: BERNARD ROBINSON & COMPANY LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1164656 2025-001 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $1.51M Yes 1
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $252,546 Yes 0

Contacts

Name Title Type
DW98QNQJQ395 Trisha Jester Auditee
8009631280 Jamie Parsons Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the 'Schedule') includes the federal award activity of Stoneboro Development Corporation, under programs of the federal government for the year ended June 30, 2025. 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 Stoneboro Development Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Stoneboro Development Corporation.
Stoneboro Development Corporation had the following loan balance, related to federal awards, outstanding as of June 30, 2025: Program Title: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 207/223(f)); Assistance Listing Number: 14.155; Amount Outstanding: $1,429,527.

Finding Details

Finding 2025-001
Finding 2025-001 - U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Statement of Condition: During the year ended June 30, 2025, the Corporation made fifteen monthly mortgage and escrow payments, however, as of June 30, 2025 the Corporation was delinquent by one monthly mortgage and escrow payment. Additionally, the Corporation incurred late fees of $2,321 during the year ended June 30, 2025. Criteria: The Loan Agreement and the Regulatory Agreement with HUD requires the Corporation to make all required monthly mortgage and escrow payments by its due date. Effect: Noncompliance with HUD regulations and mortgage default. Cause: Vacancy and cash flow shortages. Context: A test to compare the required mortgage payments and escrow deposits to the actual mortgage payments and escrow deposits was performed. During the year ended June 30, 2025, the Corporation made fifteen mortgage payments and escrow deposits, however, as of June 30, 2025 the Corporation was delinquent by one monthly mortgage payment and escrow deposit. Questioned Costs: $2,321 Recommendation: We recommend that management and the board of directors continue to work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the required mortgage payments and escrow deposits were not made. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, in July 2025, the Corporation executed a reinstatement agreement with the lender to make additional monthly mortgage payments of $1,000 through May 2026 to bring the mortgage to current.