FAC Explorer

Audit 385022

FY End
2025-06-30
Total Expended
$1.87M
Findings
1
Programs
2
Organization: Grange Acres Nonprofit Housing Corporation (phase Ii) (MI)
Year: 2025 Accepted: 2026-02-02
Auditor: MANER COSTERISAN

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1171943 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 $1.06M Yes 0
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $804,602 Yes 1

Contacts

Name Title Type
UENBGHE22YD3 David Gerchak Auditee
5179083796 Keith R. Pfeifle, CPA Auditor
No contacts on file

Notes to SEFA

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, 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 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).
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.
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:

Finding Details

Finding 2025-001
Finding Number 2025-001: Significant Deficiency in Internal Control over Major Federal Program and Program Noncompliance: Special Tests and Provisions: Replacement Reserve Requirements Federal Program: U.S. Department of Housing and Urban Development ALN 14.195 – Project Based Rental Assistance Condition: The Project did not make the required replacement reserve deposits in the amount of $429 for the year ended June 30, 2025. Criteria: Project management is responsible for depositing funds into the replacement reserve account in the monthly amount determined by HUD. Effect: The proper cash amount was not deposited, therefore the replacement reserve was not properly funded. Cause: Procedures to deposit funds into the replacement reserve were not followed. HUD increased the deposit requirement effective April 1, 2025. The escrow agent was not notified of this increase, and therefore did not pull the updated monthly requirement accordingly. Recommendation: The Project should deposit $429 into the replacement reserve account. Additionally, procedures should be followed to ensure management identifies the need for required deposits. Auditor noncompliance code: N – Reserve for replacements deposits.