FAC Explorer

Audit 387764

FY End
2025-06-30
Total Expended
$6.43M
Findings
6
Programs
1
Organization: The Harry and Jeanette Weinberg Terrace, Inc. (MD)
Year: 2025 Accepted: 2026-02-18
Auditor: COHNREZNICK LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1174106 2025-001 Material Weakness Yes H
1174107 2025-001 Material Weakness Yes H
1174108 2025-002 Material Weakness Yes N
1174109 2025-002 Material Weakness Yes N
1174110 2025-003 Material Weakness Yes A
1174111 2025-003 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $380,293 Yes 3

Contacts

Name Title Type
WJ2HVDD314G8 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 Terrace, Inc., HUD Project No.: 052-EE015, 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 The Harry and Jeanette Weinberg Terrace, 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 Terrace, Inc. For the year ended June 30, 2025, no awards were passed through to subrecipients.
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 Terrace, 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 $6,045,900. 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 2037. The restrictions on this grant are being released as net assets without donor restrictions on a straight-line basis over its term. See below for a reconciliation between the original capital advance and the amount shown as net assets with donor restriction as of June 30, 2025 on the statement of financial position:

Finding Details

Finding 2025-001
Criteria During the year ended June 30, 2025, the Partnership deposited an extra $35,468 into the Residual Receipts account. Condition The terms of the regulatory agreement require distributions to be limited to available surplus cash computed on a semi-annual or annual basis. Cause Procedures were not in place to ensure that distributions of cash were limited to available surplus cash in accordance with HUD regulations. Effect or Potential Effect The payments of $35,468 are unauthorized distributions and therefore considered to be questioned costs. Questioned Costs $35,468 Identification as a Repeat Finding This is not a repeat finding. Recommendation Management should immediately reimburse the project's cash account for the unauthorized distribution to the Residual Receipts account. Auditor Noncompliance Code: H. Unauthorized distribution of project assets. Views of Responsible Officials Management agrees with the findings and recommendations and has implemented reviews of the financial statements by senior management prior to approving transfers to ensure accuracy of information. Finding Resolution Status: In process.
Finding 2025-002
Criteria The regulatory agreement requires that the project make monthly deposits to its replacement reserve. Condition During the year ended June 30 2025, the project did not timely make the required monthly deposit to the replacement reserve in the amount of $2,852. Cause The project does not generate sufficient cash flow to make the required monthly deposits. 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 $2,852 Identification as a Repeat Finding This is not a repeat finding. Recommendation Management should review the project budget to determine if nonessential costs can be cut 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 Views of Responsible Officials Management agrees with the findings and recommendations, will transfer the replacement reserve funds. Monthly deposits will be completed in accordance with HUD going forward to ensure all terms and conditions are met. Finding Resolution Status: Unresolved.
Finding 2025-003
Criteria Any withdrawal from the replacement reserve account requires HUD approval. Condition During the year ended June 30, 2025, management withdrew $30,336 from the replacement reserve account without HUD approval. Cause The amount was withdrawn from the replacement reserve account in error since the HUD approval was for a different project. Effect or Potential Effect The withdrawal of $30,336 is an unauthorized withdrawal from the replacement reserve account. Questioned Costs $30,336 Identification as a Repeat Finding This is not a repeat finding. Recommendation Management should immediately deposit $30,336 into the replacement reserve account. Auditor Noncompliance Code: A. Unauthorized withdrawals from replacement reserve account. Views of Responsible Officials Management agrees with the findings and recommendation is working with ownership on reimbursement to property. Management will gain prior approval for replacement reserve withdraw in accordance with HUD going forward. Finding Resolution Status: Unresolved.