FAC Explorer

Audit 49655

FY End
2022-06-30
Total Expended
$2.37M
Findings
2
Programs
2
Organization: Shenango Treetops INC (PA)
Year: 2022 Accepted: 2022-10-30
Auditor: Affordable Housing Accountants LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
52373 2022-001 - - G
628815 2022-001 - - G

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.01M Yes 1
14.195 Section 8 Housing Assistance Payments Program $361,233 - 0

Contacts

Name Title Type
CY2AW6FQDKY1 John Hughes Auditee
7246512544 Ronald A. Miller Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards, (the Schedule)includes the federal awards activity of Shenango Treetops Inc., (the Project), underprograms of the federal government for the year ended June 30, 2022. The informationin this Schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principals,and Audit Requirements for Federal Awards, (the Uniform Guidance).Because the Schedule presents only a selected portion of the operations of the Project, itis not intended to and does not present the balance sheet, changes in net assets or cashflows of the Project.Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting.Such expenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. The Project has not elected to use the 10% de minimis indirect cost rateas allowed under the Uniform Guidance since the Project is a single purpose entity thatonly incurs costs based on the reasonable and necessary costs for one single project.Federal loan programs with continuing program compliance requirements are presentedon the Schedule with the beginning of the year loan balance. The ending balance is$2,010,000. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 2010000.

Finding Details

Finding 2022-001
Finding 2022-001 Questioned Costs: $37,720 Information of Universe and Population Size: N/A Sample Size Information: N/A Noncompliance Information: The Project purchased carpeting with project funds for use by Shenango Treetops Inc, Cedarcrest Housing Corporation, and Wampum Park Housing Corporation. This resulted in an unauthorized loan of project funds to Cedarcrest Housing Corporation and Wampum Park Housing Corporation. Condition: The Project purchased carpeting with project funds for us by Cedarcrest Housing Corporation and Wampum Park Housing Corporation in the amount of $37,720. These funds are an outstanding receivable as of June 30, 2022. Criteria: HUD regulations do not permit loans or advances of project funds without the prior written approval of HUD. Cause: The Project purchased carpeting with project funds for use by Cedarcrest Housing Corporation and Wampum Park Housing Corporation. This has resulted in an unauthorized loan of Project funds to Cedarcrest Housing Corporation and Wampum Park Housing Corporation. Effect: The Project has made an unauthorized loan of project funds to Cedarcrest Housing Corporation and Wampum Park Housing Corporation in the amount of $37,720 as of June 30, 2022. Recommendation: Those charged with Governance and Management should reimburse the Project the amount of $37,720 as soon as feasible. Reporting Views of Responsible Official: After the year ending June 30, 2022, project management realized they had inadvertently loaned project funds and reported it to the auditors and HUD project management. Those charged with Governance and Management agree with the finding and will reimburse the loan on a timely basis.
Finding 2022-001
Finding 2022-001 Questioned Costs: $37,720 Information of Universe and Population Size: N/A Sample Size Information: N/A Noncompliance Information: The Project purchased carpeting with project funds for use by Shenango Treetops Inc, Cedarcrest Housing Corporation, and Wampum Park Housing Corporation. This resulted in an unauthorized loan of project funds to Cedarcrest Housing Corporation and Wampum Park Housing Corporation. Condition: The Project purchased carpeting with project funds for us by Cedarcrest Housing Corporation and Wampum Park Housing Corporation in the amount of $37,720. These funds are an outstanding receivable as of June 30, 2022. Criteria: HUD regulations do not permit loans or advances of project funds without the prior written approval of HUD. Cause: The Project purchased carpeting with project funds for use by Cedarcrest Housing Corporation and Wampum Park Housing Corporation. This has resulted in an unauthorized loan of Project funds to Cedarcrest Housing Corporation and Wampum Park Housing Corporation. Effect: The Project has made an unauthorized loan of project funds to Cedarcrest Housing Corporation and Wampum Park Housing Corporation in the amount of $37,720 as of June 30, 2022. Recommendation: Those charged with Governance and Management should reimburse the Project the amount of $37,720 as soon as feasible. Reporting Views of Responsible Official: After the year ending June 30, 2022, project management realized they had inadvertently loaned project funds and reported it to the auditors and HUD project management. Those charged with Governance and Management agree with the finding and will reimburse the loan on a timely basis.