FAC Explorer

Audit 398940

FY End
2025-12-31
Total Expended
$27.00M
Findings
2
Programs
2
Organization: The Pelham II Corporation (MA)
Year: 2025 Accepted: 2026-04-16
Auditor: RSM US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1207116 2025-001 Material Weakness Yes P
1207117 2025-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $22.44M Yes 1
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $4.56M Yes 1

Contacts

Name Title Type
FDMVB2NVT8J3 Susan Dargan Auditee
7818490014 Richard Ferguson Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of The Pelham II Corporation (the Corporation) under programs of the federal government for the year ended December 31, 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 Principle, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, change in net assets or cash flows of the Corporation.
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.
The expenditures of federal awards for Assistance Listing Number 14.155 includes the loan balance outstanding at the beginning of the year and loans received during the year. There were no loans received during the year. The loan balance outstanding as of January 1, 2025, was $22,440,038, which was subject to continuing compliance during the year ended December 31, 2025. The outstanding balance of the mortgage note as of December 31, 2025, totaled $21,986,088
The Corporation has elected not to use the de minimus indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
Finding No. 2025-001: Late Submission of Data Collection Form Federal Agency: Department of Housing and Urban Development (HUD) Pass-through granting agency: Not applicable – direct federal award. Program name and ALN: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects ALN 14.155 Federal award year: Year ended December 31, 2025 Criteria: Title 2 CFR 200.512(a)(1) requires auditees to submit the Data Collection Form (SF SAC) and reporting package to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s report(s) or nine months after the end of the audit period. Condition: The reporting entity did not submit its Data Collection Form and reporting package to the Federal Audit Clearinghouse within the required timeframe. The auditor’s reports were issued on March 31, 2025; however, the Data Collection Form was not submitted within 30 calendar days of that date. Cause: Management did not have adequate internal controls or monitoring procedures in place to ensure timely submission of the Data Collection Form following issuance of the audit report. Effect: Failure to submit the Data Collection Form within the required timeframe results in noncompliance with Uniform Guidance requirements and may subject the entity to increased federal oversight, delayed access to future federal funding, or other administrative actions by the federal awarding agency. Questioned Costs: None Context: The Data Collection Form submission was completed after the required deadline; however, no federal costs were questioned as a result of this noncompliance. Recommendation: We recommend that management implement formal procedures to ensure the Data Collection Form and reporting package are submitted to the Federal Audit Clearinghouse within the required timeframe. This may include assigning responsibility to a specific individual, establishing internal submission deadlines, and implementing a post issuance compliance checklist tied to audit report release dates. View of Responsible Officials and Planned Corrective Actions: Management concurs with the finding and has indicated that corrective actions have been implemented to improve monitoring and ensure timely submission of the Data Collection Form in future periods.