FAC Explorer

Audit 9869

FY End
2023-03-31
Total Expended
$753,696
Findings
2
Programs
2
Organization: Highland Pointe, Inc. (PA)
Year: 2023 Accepted: 2024-01-05
Auditor: McGill Power Bell & Associates LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7551 2023-001 - - N
583993 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $704,600 Yes 1
14.182 Section 8 New Construction and Substantial Rehabilitation $49,096 - 0

Contacts

Name Title Type
K268JPBWNBL6 Matthew Good Auditee
8144533333 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Highland Pointe, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Highland Pointe, Inc., HUD Project #033-HD094, under programs of the federal government for the year ended March 31, 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 Highland Pointe, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Highland Pointe, Inc.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: Highland Pointe, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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 Capital Advance Program $704,600

Finding Details

Finding 2023-001
– Supportive Housing for Disabled Persons ALN #14.181 Statement of Condition: The Project did not remit residual receipts balances in excess of $250 per unit to HUD by the Project Rental Assistance Contract renewal date. Criteria: Pursuant to statutory language from the Consolidated and Further Continuing Appropriations Act, HUD is required to recapture residual receipt balances that are in excess of $250 per unit. The fund must be remitted to HUD upon “termination” of the Project Rental Assistance Contract. Termination is defined as expiration of the contract term, which for most PRACs falls on contract renewal date. Effect of Condition: This is a violation of the HUD Regulations. Cause of Condition: The procedures in place to ensure the excess residual receipts remittance was made timely were not consistently followed. Recommendation: No action is needed, as the required return of excess residual receipts has already been remitted to HUD. Response: See Corrective Action Plan.
Finding 2023-001
– Supportive Housing for Disabled Persons ALN #14.181 Statement of Condition: The Project did not remit residual receipts balances in excess of $250 per unit to HUD by the Project Rental Assistance Contract renewal date. Criteria: Pursuant to statutory language from the Consolidated and Further Continuing Appropriations Act, HUD is required to recapture residual receipt balances that are in excess of $250 per unit. The fund must be remitted to HUD upon “termination” of the Project Rental Assistance Contract. Termination is defined as expiration of the contract term, which for most PRACs falls on contract renewal date. Effect of Condition: This is a violation of the HUD Regulations. Cause of Condition: The procedures in place to ensure the excess residual receipts remittance was made timely were not consistently followed. Recommendation: No action is needed, as the required return of excess residual receipts has already been remitted to HUD. Response: See Corrective Action Plan.