FAC Explorer

Audit 870

FY End
2022-12-31
Total Expended
$9.65M
Findings
2
Programs
2
Organization: Asbury Dwellings, Inc. (DC)
Year: 2022 Accepted: 2023-10-20
Auditor: Rubino & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
420 2022-001 Significant Deficiency - E
576862 2022-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $6.94M Yes 0
14.195 Section 8 Housing Assistance Payments Program $2.71M Yes 1

Contacts

Name Title Type
JJXTCVE31RJ5 Mark Robinson Auditee
2162235268 Susanna Cuccia Auditor
No contacts on file

Notes to SEFA

Title: NOTE 3 – MORTGAGE BALANCE Accounting Policies: The accompanying schedule of expenditures of federal awards, which includes the federal grant activity of Asbury Dwellings, Inc., is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Corporation has waived the 10% de minimis cost requirement for the year ended December 31, 2022. The balance of the Supportive Housing for the Elderly Section 202 Direct Loan mortgage payable balance at December 31, 2022 is $6,801,213.

Finding Details

Finding 2022-001
Statement of Condition: The US Department of Housing and Urban Development conducted a Management and Occupancy Review (MOR) on November 28, 2022. Their report, dated November 28, 2022, reflected a below average rating related to Leasing and Occupancy and General Management Practices. However, the report did give an above average rating related to physical building inspection. Criteria: The Housing Assistance Payments (HAP) Contract requires compliance regarding the physical building and tenant files to be in accordance with the contract requirements. Effect: Failure to comply with the Regulatory Agreement and the HAP contract is a violation of HUD regulations. Cause: The property was in the process of transitioning the management over to a new management agent, making it more difficult to maintain effective policies and procedures related to the tenant files and recertifications. Recommendation: Management must perform the corrective actions as required by the MOR by the target completion date. Management/Owner Response: The Board and Management agree with the findings and the new management agent has taken action to correct the findings and implement the recommendations. As of the date of these financial statements, these steps had been taken and the property received a notice from HUD stating that they had satisfactorily completed all corrective action and that the MOR was considered closed.
Finding 2022-001
Statement of Condition: The US Department of Housing and Urban Development conducted a Management and Occupancy Review (MOR) on November 28, 2022. Their report, dated November 28, 2022, reflected a below average rating related to Leasing and Occupancy and General Management Practices. However, the report did give an above average rating related to physical building inspection. Criteria: The Housing Assistance Payments (HAP) Contract requires compliance regarding the physical building and tenant files to be in accordance with the contract requirements. Effect: Failure to comply with the Regulatory Agreement and the HAP contract is a violation of HUD regulations. Cause: The property was in the process of transitioning the management over to a new management agent, making it more difficult to maintain effective policies and procedures related to the tenant files and recertifications. Recommendation: Management must perform the corrective actions as required by the MOR by the target completion date. Management/Owner Response: The Board and Management agree with the findings and the new management agent has taken action to correct the findings and implement the recommendations. As of the date of these financial statements, these steps had been taken and the property received a notice from HUD stating that they had satisfactorily completed all corrective action and that the MOR was considered closed.