FAC Explorer

Audit 409230

FY End
2025-12-31
Total Expended
$1.29M
Findings
2
Programs
3
Organization: Harvard Townhouse, Inc. (NE)
Year: 2025 Accepted: 2026-08-17
Auditor: CORE CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1227050 2025-004 Material Weakness Yes N
1227051 2025-005 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $300,000 Yes 0
10.427 RURAL RENTAL ASSISTANCE PAYMENTS $58,441 Yes 0
10.415 RURAL RENTAL HOUSING LOANS $41,010 Yes 1

Contacts

Name Title Type
Q38SNW33NM65 Esmer Flores Auditee
4027724091 Jake Klabenes Auditor
No contacts on file

Notes to SEFA

Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement.
HOME Investment Partnership Program funds were distributed to Harvard Townhouse, Inc. These funds were used to construct the rental units. The funds advanced are repayable to the U.S. Department of Housing and Urban Development if certain compliance terms are not maintained. The balance of the loans at December 31, 2025, was $300,000.
Rural rental housing loans were distributed to Harvard Townhouse, Inc. These funds were used to construct the rental units. The funds advanced are repayable to the U.S. Department of Agriculture - Rural Development. The balance of the loans at December 31, 2025, was $884,368.

Finding Details

Finding 2025-004
FINDING 2025-004: Material Weakness in Internal Control over Compliance Federal Awards Compliance – Special Tests and Provisions Federal Award Identification: Assistance Listing Program Title: Rural Rental Housing Loans Assistance Listing Program Number: 10.415 Federal Award ID Number and Year: N/A Federal Agency: U.S. Department of Agriculture – Rural Development Criteria: Under 7 CFR Section 3560.105(h): Borrowers must provide fidelity coverage on any personnel entrusted with the receipt, custody, and disbursement of any housing monies, securities, or readily salable property other than money or securities. Borrowers must have fidelity coverage in force as soon as there are assets within the organization and it must be obtained before any loan funds or interim financing funds are made available to the borrower. Condition: During the current year the Project did not maintain fidelity insurance as required by 7 CFR Section 3560.105(h). Context: The Project reduced their insurance coverage by utilizing lender-placed coverage and this coverage did not include fidelity insurance. Effect or Potential Effect: The Project failed to timely renew its fidelity insurance resulting in a lapse of coverage. Cause: Controls over insurance coverage failed to identify a lack of fidelity insurance in a timely manner. Questioned Costs: N/A Repeat Finding: No Recommendation: It is our recommendation that the Project renew its fidelity coverage as soon as possible. Auditee Response and Corrective Action Plan: See Page 44
Finding 2025-005
FINDING 2025-005: Material Weakness in Internal Control over Compliance Federal Awards Compliance – Allowable Costs/Cost Principles Federal Award Identification: Assistance Listing Program Title: Rural Rental Housing Loans Assistance Listing Program Number: 10.415 Federal Award ID Number and Year: N/A Federal Agency: U.S. Department of Agriculture – Rural Development Criteria: See Part II, Finding 2025-001 Condition: See Part II, Finding 2025-001 Context: See Part II, Finding 2025-001 Effect or Potential Effect: See Part II, Finding 2025-001 Cause: See Part II, Finding 2025-001 Questioned Costs: N/A Repeat Finding: 2025-001, 2024-001, 2023-001, 2022-001, 2021-001, 2020-001, 2019-001, 2018- 001, 2017-001, 2016-001, 2015-001, 2014-001, and 2013-001 Recommendation: See Part II, Finding 2025-001 Auditee Response and Corrective Action Plan: See Page 44