FAC Explorer

Audit 414673

FY End
2026-06-30
Total Expended
$1.72M
Findings
2
Programs
2
Organization: Stoneboro Development Corporation 033-11048 (PA)
Year: 2026 Accepted: 2026-10-06
Auditor: PETERSON ACCOUNTING GROUP PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1240062 2026-001 Material Weakness Yes C
1240063 2026-001 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $1.43M Yes 1
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $290,937 Yes 1

Contacts

Name Title Type
DW98QNQJQ395 Trisha Jester Auditee
4122469213 Katherine Everhart Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the ‘Schedule’) includes the federal award activity of Stoneboro Development Corporation, HUD Project No. 033-11048 and is presented on the accrual basis of accounting. 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 Stoneboro Development Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of Stoneboro Development 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 organization has elected not to use the 15 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The mortgage balance at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. Stoneboro Development Corporation received no additional loans during the year. The balance of the outstanding federally insured mortgage at June 30, 2026, is $1,360,552.

Finding Details

Finding 2026-001
Finding 2026-001: During the year ended June 30, 2026, the Corporation was delinquent by one monthly mortgage and escrow payment. Additionally, the Corporation incurred late fees as a result of the delinquent mortgage and escrow payment. Criteria: The Loan Agreement and the Regulatory Agreement with HUD requires the Corporation to make all required monthly mortgage and escrow payments by its due date. Condition: The Corporation was delinquent one monthly mortgage and escrow payment and additionally, was assessed late fees by the mortgage company due to the delinquency. Cause: Vacancy and cash flow shortages. Effect: Noncompliance with HUD regulations and mortgage default. Recommendation: We recommend management continue to work to improve occupancy and submit special claim requests to HUD for vacant units to improve cash flow to ensure continued timely payment of the mortgage payments and escrow deposits. Questioned Costs: $1,622 View of Responsible Officials: Management and the board of directors acknowledge the required mortgage payments and escrow deposits were not paid timely in accordance with the Loan Agreement and Regulatory Agreement as required by HUD. Management has been able to fill vacancies and submit special claims to improve cash flow. In July 2025, the Corporation executed a reinstatement agreement with the mortgage lender to make additional monthly mortgage payments of $1,000 through May 2026. The Corporation made an additional principal and interest payment in February 2026 that accelerated the payoff, and the mortgage was brought to current in March 2026. The mortgage lender agreed to waive half of the late fees in April 2026, resulting in a balance due of $1,622 that was paid in May 2026.