FAC Explorer

Audit 8772

FY End
2023-06-30
Total Expended
$2.00M
Findings
2
Programs
2
Organization: Liberty Towers Incorporated of Clarion (PA)
Year: 2023 Accepted: 2023-12-28
Auditor: McGill Power Bell & Associates LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6846 2023-001 Material Weakness - E
583288 2023-001 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.59M Yes 1
14.182 Section 8 New Construction and Substantial Rehabilitation $408,895 - 0

Contacts

Name Title Type
EYGQLSKGA525 Melanie Bennett Auditee
8143758945 Shawn Emerson Auditor
No contacts on file

Notes to SEFA

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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Liberty Towers Incorporated of Clarion, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The property follows the HUD regulatory agreements for all costs charged to the propety. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Liberty Towers Incorporated of Clarion, Inc., HUD Project #033-11057, under programs of the federal government for the year ended June 30, 2023. 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 Liberty Towers Incorporated of Clarion, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Liberty Towers Incorporated of Clarion,Inc.
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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Liberty Towers Incorporated of Clarion, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The property follows the HUD regulatory agreements for all costs charged to the propety. Balances of loans and loan guarantee programs outstanding at the end of the audit period for loans under 2 CFR Section 200.502(b) are as follows: HUD Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Loan, Year-End Balance $1,530,407

Finding Details

Finding 2023-001
Section 223(f) Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects , ALN #14.155 Statement of Condition: The Project does not have sufficient internal controls in place over eligibility. Criteria: Pursuant to 2 CFR section 200.303, Uniform Guidance requires that entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Effect of Condition: This is a violation of Uniform Guidance requirements. Cause of Condition: The Project does not have sufficient internal controls in place over eligibility. Recommendation: It is recommended that the Project develop sufficient internal controls over eligibility. Response: See Corrective Action Plan.
Finding 2023-001
Section 223(f) Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects , ALN #14.155 Statement of Condition: The Project does not have sufficient internal controls in place over eligibility. Criteria: Pursuant to 2 CFR section 200.303, Uniform Guidance requires that entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Effect of Condition: This is a violation of Uniform Guidance requirements. Cause of Condition: The Project does not have sufficient internal controls in place over eligibility. Recommendation: It is recommended that the Project develop sufficient internal controls over eligibility. Response: See Corrective Action Plan.