FAC Explorer

Audit 55368

FY End
2022-06-30
Total Expended
$1.07M
Findings
4
Programs
2
Organization: Stansbury Homes, INC (MD)
Year: 2022 Accepted: 2023-03-29
Auditor: Pkf O'Connor Davies LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
60065 2022-001 - - N
60066 2022-001 - - N
636507 2022-001 - - N
636508 2022-001 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities - Capital Advance Program $931,500 Yes 1
14.181 Supportive Housing for Persons with Disabilities - Project Rental Assistance Contract $142,906 Yes 1

Contacts

Name Title Type
YEMHR7NKKSA8 Kelly Savoca Auditee
4102072092 Stewart Grubman Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations 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.The Schedule includes the federal award activity of Stansbury Homes, Inc. (the Entity) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Entity, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Entity. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Entity has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Entity is reimbursed for programmatic and administrative costs in accordance with rules set forth by the U.S. Department of Housing and Urban Development. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES - CAPITAL ADVANCE PROGRAM (14.181) - Balances outstanding at the end of the audit period were $931,500.
Title: FEDERAL LOAN PROGRAM Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations 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.The Schedule includes the federal award activity of Stansbury Homes, Inc. (the Entity) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Entity, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Entity. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Entity has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Entity is reimbursed for programmatic and administrative costs in accordance with rules set forth by the U.S. Department of Housing and Urban Development. The Entity received a U.S. Department of Housing and Urban Development capital advanceunder Section 811 of the National Affordable Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Entity received no additional loans during the year.

Finding Details

Finding 2022-001
Finding No. 2022-001 ? Security Deposit Funding Criteria The regulatory agreement requires that security deposits received from residential tenants are deposited separately in a federally insured financial institution bank account. Statement of Condition Security deposit balance maintained by the Entity in the bank account was below the amount of residential tenant deposits recorded by the Entity. Cause The cause of the missing payments was due to management oversight. Effect or Potential Effect The security deposit fund is underfunded by a total of $23. Auditor Non-Compliance Code M-Security Deposits Questioned Costs There were no known questioned costs. Perspective The finding represents an isolated instance of management oversight. Repeat finding No Recommendations Auditor recommends that the Entity fund the bank account immediately to fund the shortfall and create a better system of controls to ensure no future occurrences. Auditor notes the bank account has been funded to cure the shortfall prior to audit issuance. No further action required. View of responsible officials Auditee agrees that security deposit balance maintained by the Entity in the bank account was below the amount of residential tenant deposits recorded by the Entity for the fiscal year ended June 30, 2022. Auditee will make an additional deposit to fully fund the security deposit bank account and will establish a system to ensure the security deposit is paid
Finding 2022-001
Finding No. 2022-001 ? Security Deposit Funding Criteria The regulatory agreement requires that security deposits received from residential tenants are deposited separately in a federally insured financial institution bank account. Statement of Condition Security deposit balance maintained by the Entity in the bank account was below the amount of residential tenant deposits recorded by the Entity. Cause The cause of the missing payments was due to management oversight. Effect or Potential Effect The security deposit fund is underfunded by a total of $23. Auditor Non-Compliance Code M-Security Deposits Questioned Costs There were no known questioned costs. Perspective The finding represents an isolated instance of management oversight. Repeat finding No Recommendations Auditor recommends that the Entity fund the bank account immediately to fund the shortfall and create a better system of controls to ensure no future occurrences. Auditor notes the bank account has been funded to cure the shortfall prior to audit issuance. No further action required. View of responsible officials Auditee agrees that security deposit balance maintained by the Entity in the bank account was below the amount of residential tenant deposits recorded by the Entity for the fiscal year ended June 30, 2022. Auditee will make an additional deposit to fully fund the security deposit bank account and will establish a system to ensure the security deposit is paid
Finding 2022-001
Finding No. 2022-001 ? Security Deposit Funding Criteria The regulatory agreement requires that security deposits received from residential tenants are deposited separately in a federally insured financial institution bank account. Statement of Condition Security deposit balance maintained by the Entity in the bank account was below the amount of residential tenant deposits recorded by the Entity. Cause The cause of the missing payments was due to management oversight. Effect or Potential Effect The security deposit fund is underfunded by a total of $23. Auditor Non-Compliance Code M-Security Deposits Questioned Costs There were no known questioned costs. Perspective The finding represents an isolated instance of management oversight. Repeat finding No Recommendations Auditor recommends that the Entity fund the bank account immediately to fund the shortfall and create a better system of controls to ensure no future occurrences. Auditor notes the bank account has been funded to cure the shortfall prior to audit issuance. No further action required. View of responsible officials Auditee agrees that security deposit balance maintained by the Entity in the bank account was below the amount of residential tenant deposits recorded by the Entity for the fiscal year ended June 30, 2022. Auditee will make an additional deposit to fully fund the security deposit bank account and will establish a system to ensure the security deposit is paid
Finding 2022-001
Finding No. 2022-001 ? Security Deposit Funding Criteria The regulatory agreement requires that security deposits received from residential tenants are deposited separately in a federally insured financial institution bank account. Statement of Condition Security deposit balance maintained by the Entity in the bank account was below the amount of residential tenant deposits recorded by the Entity. Cause The cause of the missing payments was due to management oversight. Effect or Potential Effect The security deposit fund is underfunded by a total of $23. Auditor Non-Compliance Code M-Security Deposits Questioned Costs There were no known questioned costs. Perspective The finding represents an isolated instance of management oversight. Repeat finding No Recommendations Auditor recommends that the Entity fund the bank account immediately to fund the shortfall and create a better system of controls to ensure no future occurrences. Auditor notes the bank account has been funded to cure the shortfall prior to audit issuance. No further action required. View of responsible officials Auditee agrees that security deposit balance maintained by the Entity in the bank account was below the amount of residential tenant deposits recorded by the Entity for the fiscal year ended June 30, 2022. Auditee will make an additional deposit to fully fund the security deposit bank account and will establish a system to ensure the security deposit is paid