FAC Explorer

Audit 45116

FY End
2022-12-31
Total Expended
$4.37M
Findings
2
Programs
2
Organization: Alverno Apartments, Inc. (PA)
Year: 2022 Accepted: 2023-03-29
Auditor: Maher Duessel CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43248 2022-001 Material Weakness - E
619690 2022-001 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $4.13M Yes 1
14.195 Section 8 Housing Assistance Payments Program $236,456 - 0

Contacts

Name Title Type
MWXUC618LTN8 Daniel K. Barbusio Auditee
4126465193 Robert A. Belicose Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: Alverno Apartments, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Alverno Apartments, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 202 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. Alverno Apartments, Inc. received no additional loans during the year. The balance of the loan outstanding at December 31, 2022 is the same as the beginning balance, $4,131,500.
Title: Basis of Presentation Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: Alverno Apartments, Inc. has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Alverno Apartments, 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 Alverno Apartments, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Alverno Apartments, Inc.

Finding Details

Finding 2022-001
FINDING: 2022-001 Eligibility Federal Agency: U.S. Department of Housing and Urban Development Program: HUD Supportive Housing for the Elderly (Section 202) ALN Number 14.157. Criteria: Management is responsible for establishing internal controls to ensure the accuracy of yearly completion and submission of the HUD 50059 of households occupying assisted units and making appropriate adjustments to the tenant payment and the project rental assistance payment (24 CFR section 891.410). Condition: Six tenant files were selected for audit of the certification of the proper calculation of tenant rent. The test found that for two tenants, the submitted Form HUD-50059 was completed but not included in the tenant?s file and could not be located. Additionally, supporting documentation was not included to support the calculation. Cause: Internal controls and compliance review were not in place to ensure the tenant files included form HUD-50059 and the supporting documentation used in the calculation of tenant rent. Effect: Alverno Apartments, Inc. (Property) rent for the two out of six tenants tested was not properly supported to verify the allocation of rental payment between the tenant and HAP portion. Questioned Costs: Unknown Recommendation: The Property should have internal controls in place to review Form HUD-50059 to ensure all documentation used to calculate the tenant rent and assistance payment is supported and properly calculated. Views of Responsible Official and Planned Corrective Action: Management agrees with finding; see separate corrective action plan.
Finding 2022-001
FINDING: 2022-001 Eligibility Federal Agency: U.S. Department of Housing and Urban Development Program: HUD Supportive Housing for the Elderly (Section 202) ALN Number 14.157. Criteria: Management is responsible for establishing internal controls to ensure the accuracy of yearly completion and submission of the HUD 50059 of households occupying assisted units and making appropriate adjustments to the tenant payment and the project rental assistance payment (24 CFR section 891.410). Condition: Six tenant files were selected for audit of the certification of the proper calculation of tenant rent. The test found that for two tenants, the submitted Form HUD-50059 was completed but not included in the tenant?s file and could not be located. Additionally, supporting documentation was not included to support the calculation. Cause: Internal controls and compliance review were not in place to ensure the tenant files included form HUD-50059 and the supporting documentation used in the calculation of tenant rent. Effect: Alverno Apartments, Inc. (Property) rent for the two out of six tenants tested was not properly supported to verify the allocation of rental payment between the tenant and HAP portion. Questioned Costs: Unknown Recommendation: The Property should have internal controls in place to review Form HUD-50059 to ensure all documentation used to calculate the tenant rent and assistance payment is supported and properly calculated. Views of Responsible Official and Planned Corrective Action: Management agrees with finding; see separate corrective action plan.