Audit 397432

FY End

2025-06-30

Total Expended

$50.15M

Findings

1

Programs

1

Organization: University Properties, Inc. (PA)

Year: 2025 Accepted: 2026-04-01

Auditor: MAILLIE LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1205716	2025-001	Material Weakness	Yes	L

ALN	Program	Spent	Major	Findings
10.766	COMMUNITY FACILITIES LOANS AND GRANTS	$50.15M	Yes	1

Contacts

Name	Title	Type
VKVCDAGCZGM8	Jeffrey Snyder	Auditee
5704223201	Michael	Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards presents the activity of all federal financial assistance programs of University Properties, Inc. (the “Organization”) for the ended June 30, 2025. The information in the schedule of expenditures of federal awards 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 of expenditures of federal awards presents only a select portion of the operations of the Organization, it is not intended to, and does not present, the financial position, changes in net assets, or cash flows of the Organization.

The accompanying schedule of expenditures of federal awards is presented using 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. For the awards related to the U.S. Departure of Agriculture Community Facilities Loans and Grants the amount listed on the schedule of expenditures of federal awards represents the amount outstanding as of July 1, 2024.

The balance and transactions related to the USDA loan program are included in the Organization's financial statements. In accordance with the Uniform Guidance, the schedule of expenditures of federal awards reflects the balance of the loan outstanding at the beginning of the fiscal year, or July 1, 2024. There were no new loans made or received during the year ended June 30, 2025. Principal payments on the outstanding loan were $990,064 during the year ended June 30, 2025. The balance of the loan outstanding as of June 30, 2025, was $49,157,366.

The Organization has not elected to use the de minimis indirect cost rate as allowed under the Uniform Guidance, Section 414.

Finding Details

Finding 2025-001

2025-001 Reporting Federal Program: Community Facilities Loans and Grants (ALN 10.766) Federal Agency: U.S. Department of Agriculture Criteria: Non-federal entities that expend $750,000 (threshold will increase to $1,000,000 effective for fiscal years beginning on or after October 1, 2024) or more in federal awards during the non-federal entity’s fiscal year must have a single audit conducted in accordance with 2 CFR Part 200, Subpart F. In determining federal awards expended, a non-federal entity must consider loan and loan guarantees. The value of federal awards expended under loan programs includes the value of new loans made or received during the audit period; plus the balance of loans from previous years at the beginning of the audit period for which the Federal Government imposes continuing compliance requirements; plus any interest subsidy, cash, or administrative costs allowance received. Condition: The Organization did not identify, in a timely manner, that the Community Facilities Loan had continuing compliance requirements. Therefore, the Organization was unaware that the loan was to be included in the calculation of federal awards expended. As a result, the Organization did not have a single audit completed, as required, for the years ended June 30, 2022, June 30, 2023, and June 30, 2024. Cause: The Organization’s internal controls over compliance related to reporting were not effective. The USDA changed their position and determined that Community Facilities loans have continuing compliance requirements. The change was communicated in the Compliance Supplement and was to be applied prospectively and would be effective for borrowers with outstanding Community Facilities loan balances for fiscal years ended on or after June 30, 2022. The Organization was not aware that they should check for changes to the supplement annually, and this resulted in a lack of knowledge that a single audit was required beginning with the year ended June 30, 2022. Effect: A single audit was not performed timely, reporting requirements were missed, and the filing of the Data Collection Form was missed for the aforementioned fiscal years. The USDA has advised the Organization to begin with a single audit for the year ending June 30, 2025. Questioned Costs: N/A Identification as a repeat finding, if applicable: The Organization did not have a single audit performed for the years ending June 30, 2022, June 30, 2023, and June 30, 2024. Recommendation: We recommend management put processes in place over reporting, which include continuous monitoring of compliance requirements, to ensure timely identification of audit requirements and timely submission of the audit report and data collection form. View of Responsible Officials: Management has since put processes in place to identify the single audit reporting requirements, monitor the compliance supplement for changes, and complete timely submissions of the audit report and data collection form.