FAC Explorer

Audit 387762

FY End
2025-05-20
Total Expended
$7.88M
Findings
6
Programs
1
Organization: The Harry and Jeanette Weinberg House, Inc. (MD)
Year: 2025 Accepted: 2026-02-18
Auditor: COHNREZNICK LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1174096 2025-001 Material Weakness Yes N
1174097 2025-001 Material Weakness Yes N
1174098 2025-002 Material Weakness Yes B
1174099 2025-002 Material Weakness Yes B
1174100 2025-003 Material Weakness Yes J
1174101 2025-003 Material Weakness Yes J

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $455,400 Yes 3

Contacts

Name Title Type
FQV5AHAB86C1 Tiffany Nicolette Auditee
4105915585 Shari Grabush Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of The Harry and Jeanette Weinberg House, Inc. HUD Project No. 052-EE015, under programs of the federal government for the period ended May 20, 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 The Harry and Jeanette Weinberg House, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Harry and Jeanette Weinberg House, Inc.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The Harry and Jeanette Weinberg House, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Organization entered into a capital advance agreement with HUD to assist in financing the Organization under Section 202 of the National Housing Act in the amount of $7,420,800. The capital advance is secured by a mortgage on the property and was recorded as grant revenue in prior years. The entire amount of the capital advance is included in federal expenditures presented in the Schedule. The Organization received no additional advances during the year. The capital advance does not bear interest and is not required to be repaid as long as the housing remains available to eligible low-income elderly persons for at least 40 years. Failure to keep the housing available for low-income elderly persons or other instances of default under the terms of the mortgage, capital advance agreement or regulatory agreement could cause the entire amount of the capital advance to be immediately payable, including interest from the date of the first advance. The capital advance restrictions expire in 2035. The restrictions on this grant are being released as net assets without donor restrictions on a straight-line basis over its term. On May 21, 2025, as part of the recapitalization of the project, The Harry and Jeanette Weinberg House, Inc., was released from the capital advance restrictions. See below for a reconciliation between the original capital advance and the amount shown as net assets with donor restrictions as of May 20, 2025 on the statement of financial position:

Finding Details

Finding 2025-001
Criteria The regulatory agreement requires that the Project make monthly deposits to its replacement reserve. Condition During the period ended May 20, 2025, the Project did not make one month of the required monthly deposits to the replacement reserve. The Project is required to make monthly deposits to the reserve in the amount of $8,630. Cause The cash transfer for the monthly deposit was not made timely. Effect or Potential Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the regulatory agreement. Questioned Costs $8,630 Identification as a Repeat Finding This is not a repeat finding. Recommendations Management should make the deposits timely and review to ensure that the replacement reserve is funded in accordance with the terms of the regulatory agreement. Auditor Noncompliance Code: N. Reserve for replacements deposits View of Responsible Officials The finding has been overcome by events as this project has been released from the Regulatory Requirements subsequent to the end of the period. Finding Resolutions Status: Unresolved
Finding 2025-002
Criteria Residual receipts reserve deposits should be made within 90 days of year end and excess residual receipts are required to be remitted to HUD upon expiration of the PRAC contract. Condition During the period ended May 20, 2025, management did not make the required residual receipts reserve deposit in the amount of $262,935 within 90 days of year end, as required by HUD. Had management made the required deposit, the funds in the residual receipts reserve would have exceeded the maximum allowable balance and potentially funds would have needed to be remitted to HUD upon expiration of the PRAC contract. Cause Controls were not in place to ensure that residual receipts funds were timely deposited and remitted, as applicable. Effect or Potential Effect The Organization is not in compliance with the requirements of the regulatory agreement and of the Consolidated Appropriations Act of 2016, governing Residual Receipts for PRAC program. Questioned Costs $262,935 Identification as a Repeat Finding This is a repeat finding. Recommendations Management should establish internal controls and procedures to ensure that excess residual receipts reserve funds are remitted timely. Auditor Noncompliance Code: B. Failure to make required residual receipts deposits View of Responsible Officials The finding has been overcome by events as this project has been released from the Regulatory Requirements subsequent to the end of the period. Finding Resolutions Status: Unresolved
Finding 2025-003
Criteria Management fee payments are limited to amounts determined in accordance with the terms of the HUD approved management agreement. Condition During the period ended May 20, 2025, the Project paid management fees of $2,955 in excess of the amount approved by HUD. Cause Management inadvertently recorded and paid management fee for receipts that should have been allocated to New Weinberg House. Effect or Potential Effect The overpaid amount is an unauthorized distribution and therefore considered to be questioned costs. Questioned Costs $2,955 Identification as a Repeat Finding This is a repeat finding. Recommendations The management company should reimburse the Project for overpaid management fee in the amount of $2,955 and implement procedures to ensure that the management fee paid does not exceed the amount determined in accordance with the HUD approved management agreement. Auditor Noncompliance Code: J. Unauthorized management fees View of Responsible Officials Management agrees with the findings and recommendations, management fee transfer was completed on 7/1/25. Finding Resolutions Status: Resolved