FAC Explorer

Audit 51456

FY End
2022-10-31
Total Expended
$3.51M
Findings
2
Programs
2
Organization: Alexia Manor Housing Corporation (OH)
Year: 2022 Accepted: 2023-07-30
Auditor: Clark Schaefer Hackett & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50026 2022-001 Material Weakness - P
626468 2022-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $3.23M Yes 1
14.181 Project Rental Assistance Contract $285,196 Yes 0

Contacts

Name Title Type
HU24E3YK6ZC7 Eric Benny Auditee
2165201250 Devesh Kamal Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Alexia Manor Housing Corporation, HUD Project 042-EE058, under programs of the federal government for the year ended October 31, 2022. 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 Alexia Manor Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Alexia Manor Housing Corporation. Significant Accounting Policies: (a) 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: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - The outstanding balance of loan and loan guarantee programs at October 31, 2022 with continuing compliance requirements which are reported as federal expenditures on the accompanying schedule ofexpenditures of federal awards was $3,227,228.

Finding Details

Finding 2022-001
2022-001 Criteria: Owners shall not, without the prior written consent of HUD, convey, assign, transfer, dispose of, or encumber any of the mortgaged property or permit the conveyance, transfer, or encumbrance of such property. Condition: In connection with applying for the conversion of assistance under the Rental Assistance Demonstration (RAD), the Organization filed a certificate of merger on March 14, 2022 with the Ohio Secretary of State to effectively merge the operations of Alexia Manor Housing Corporation (owner of the Project) with another not-for-profit entity controlled by the same Board of Trustees. HUD has not issued an approval of the transfer of physical assets in connection with the RAD transaction. Questioned Costs: None Cause: In anticipation of a RAD for PRAC conversion of the existing PRAC contract, the Board of Trustees approved a plan to begin the process with HUD. The certificate of merger was filed prior to securing consent from HUD. Effect: The Project was not in full compliance with its Regulatory Agreement regarding unauthorized change in ownership. Recommendation: Management should continue to work with HUD to obtain an approval of the RAD conversion and written consent of the merger of operations of Alexia Manor Corporation with Lourexis, Inc.
Finding 2022-001
2022-001 Criteria: Owners shall not, without the prior written consent of HUD, convey, assign, transfer, dispose of, or encumber any of the mortgaged property or permit the conveyance, transfer, or encumbrance of such property. Condition: In connection with applying for the conversion of assistance under the Rental Assistance Demonstration (RAD), the Organization filed a certificate of merger on March 14, 2022 with the Ohio Secretary of State to effectively merge the operations of Alexia Manor Housing Corporation (owner of the Project) with another not-for-profit entity controlled by the same Board of Trustees. HUD has not issued an approval of the transfer of physical assets in connection with the RAD transaction. Questioned Costs: None Cause: In anticipation of a RAD for PRAC conversion of the existing PRAC contract, the Board of Trustees approved a plan to begin the process with HUD. The certificate of merger was filed prior to securing consent from HUD. Effect: The Project was not in full compliance with its Regulatory Agreement regarding unauthorized change in ownership. Recommendation: Management should continue to work with HUD to obtain an approval of the RAD conversion and written consent of the merger of operations of Alexia Manor Corporation with Lourexis, Inc.