FAC Explorer

Audit 397361

FY End
2025-12-31
Total Expended
$2.53M
Findings
1
Programs
2
Organization: Sto-Rox Plaza, Inc. (PA)
Year: 2025 Accepted: 2026-04-01
Auditor: MAHER DUESSEL CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1205661 2025-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $1.94M Yes 1
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $592,637 Yes 0

Contacts

Name Title Type
ES9SHKBR39A4 Daniel K. Barbusio Auditee
4126465193 Robert A. Belicose Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Sto-Rox Plaza, Inc. and 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 Sto-Rox Plaza, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sto-Rox Plaza, Inc.
Sto-Rox Plaza, Inc. has received a U.S. Department of Housing and Urban Development insured mortgage under Section 223(f)/207 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Sto-Rox Plaza, Inc. received no additional loans during the year. The balance of the loan outstanding at December 31, 2025 is $1,853,927.

Finding Details

Finding 2025-001
FINDING: 2025-001 Eligibility Federal Agency: U.S. Department of Housing and Urban Development Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, ALN 14.155. Condition: During our review of Form HUD-50059 completed by Sto-Rox Plaza, Inc. (Property), we noted a lack of functioning internal controls with regards to the process. The review found that for one tenant, the wrong amount of interest income was included, which then resulted in the tenant’s payment being overstated by $100 and the Housing Assistance Payment (HAP) payment to be understated by $100. Criteria: Management is responsible for establishing and maintaining internal controls over the completion of the Form HUD-50059 to ensure that tenant payments and the project rental assistance payments (24 CFR section 891.410) are properly calculated. Cause: The Property’s internal controls and procedures in place did not ensure the Form HUD-50059 was completed accurately. Effect: As a result of the lack of functioning internal controls, rent was improperly allocated between the tenant portion and the subsidy portion for one tenant, resulting in an overpayment of rent. Questioned Costs: None that meet the single audit reporting threshold. Recommendation: The Property should ensure that established procedures are followed to review the Form HUD-50059 ensuring all documentation used to calculate the tenant rent and assistance payment is supported and properly calculated. In addition, the Property should calculate the amount owed to the affected tenant as a result of the error and correct it through either a tenant credit or a reimbursement payment, in accordance with HUD requirements. Views of Responsible Official and Planned Corrective Action: Management agrees with finding; see separate corrective action plan.