EIN: 510072149
UEI: LA6VARLM6LV3
Audited by: Santora CPA Group
Oversight agency: 14 [Department of Housing and Urban Development]
Data as of August 27, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 30, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by March 30, 2026 (151 days ago).
What is a management decision? →Federal Agency U.S. Department of Housing and Urban Development Finding Reference Number 2024 001 Major Federal Program Section 811 Supportive Housing for Persons with Disabilities (14.181) Type of Finding Significant Deficiency, Noncompliance Compliance Requirement Special Tests and Provisions Replacement Reserves Account Criteria Line 10(a) of the HUD Regulatory Agreement states the following, "Borrower shall deposit a monthly amount of $__________. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this agreement" Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, Section 200.303(a) states that non federal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition During Special Tests and Provisions Replacement Reserves, the auditors identified deposits made to two HUD Replacement Reserve accounts that did not agree to amounts within the current HUD agreements. For one account, the deposit required was $275, and the Arc's deposit was $262. For the second account, the Arc deposited $394 instead of $410 as required, such that the deposits were being made timely, however for an incorrect amount. Effect The Arc was not in compliance with the Special Tests and Provisions Replacement Reserves requirement. Cause Due to lack of internal controls surrounding the review of changes to the replacement reserve requirements, the new required deposit amount was not input in the Arc's software, resulting in deposits of incorrect amounts. Questioned Costs There are no questioned costs related to this finding. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding This is a repeat finding of 2023 001. Recommendation We recommend that the Arc enhance its policies and procedures to ensure responsible program personnel timely reviews HUD communications and then validates replacement reserve account deposit amounts are adjusted accordingly for any required changes. Views of Responsible Officials We agree with the finding and have established additional internal controls to ensure future compliance as outlined in our corrective action plan.
Show full finding ▾Hide full finding ▴Federal Agency U.S. Department of Housing and Urban Development Finding Reference Number 2024 001 Major Federal Program Section 811 Supportive Housing for Persons with Disabilities (14.181) Type of Finding Significant Deficiency, Noncompliance Compliance Requirement Special Tests and Provisions Replacement Reserves Account Criteria Line 10(a) of the HUD Regulatory Agreement states the following, "Borrower shall deposit a monthly amount of $__________. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this agreement" Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, Section 200.303(a) states that non federal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition During Special Tests and Provisions Replacement Reserves, the auditors identified deposits made to two HUD Replacement Reserve accounts that did not agree to amounts within the current HUD agreements. For one account, the deposit required was $275, and the Arc's deposit was $262. For the second account, the Arc deposited $394 instead of $410 as required, such that the deposits were being made timely, however for an incorrect amount. Effect The Arc was not in compliance with the Special Tests and Provisions Replacement Reserves requirement. Cause Due to lack of internal controls surrounding the review of changes to the replacement reserve requirements, the new required deposit amount was not input in the Arc's software, resulting in deposits of incorrect amounts. Questioned Costs There are no questioned costs related to this finding. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding This is a repeat finding of 2023 001. Recommendation We recommend that the Arc enhance its policies and procedures to ensure responsible program personnel timely reviews HUD communications and then validates replacement reserve account deposit amounts are adjusted accordingly for any required changes. Views of Responsible Officials We agree with the finding and have established additional internal controls to ensure future compliance as outlined in our corrective action plan.
Corrective Action Plan: The ARC of Delaware will update monthly replacement reserve deposit amounts upon notification from HUD. The Arc will perform an analysis every 30 days to ensure deposits have been made for the appropriate amount. ARC completed this corrective action plan when it was notified during the prior period single audit. Contact Person Responsible for Correction Action: Stanley Kihara, Controller Completion Date: July 15, 2024
2023-001
Criteria The compliance supplement states the following: “Any Surplus Funds in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in a federally insured account within 60 days following the end of the fiscal year.” Surplus funds are required to be calculated and returned to HUD within 60 days of the end of the period. Condition During Special Tests and Provision Residual Receipts, the auditor identified that the Arc did not complete the preliminary audited financial statements that require a calculation of surplus funds as of December 31, 2024 unaudited information. This was the key control identified to ensure that excess funds were remitted, and as it was not completed until after 60 days of year end, the Arc was not able to remit the funds timely, if a return existed. Additionally, the Arc calculated that a return was required for one of their projects however this was related to issues related to the allocation of intercompany payables and receivables, and the Arc did have sufficient current obligations that they were not required to remit funds despite the calculation. Effect The Arc was not in compliance with the Special Tests and Provisions Residual Receipts requirement. Cause Due to lack of internal controls surrounding timely review of project level accounting and reporting, specifically with respect to surplus fund calculations. In addition, no reconciliations of intercompany payables and receivables were completed. Questioned Costs There are no questioned costs related to this finding. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Arc enhance its policies and procedures to ensure responsible program personnel timely completes preliminary assessment of the requirements to calculate surplus funds to ensure no funds are required to be remitted in the 60 day window of year end. Views of Responsible Officials We agree with the finding and have established additional internal controls to ensure future compliance as outlined in our corrective action plan.
Show full finding ▾Hide full finding ▴Criteria The compliance supplement states the following: “Any Surplus Funds in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in a federally insured account within 60 days following the end of the fiscal year.” Surplus funds are required to be calculated and returned to HUD within 60 days of the end of the period. Condition During Special Tests and Provision Residual Receipts, the auditor identified that the Arc did not complete the preliminary audited financial statements that require a calculation of surplus funds as of December 31, 2024 unaudited information. This was the key control identified to ensure that excess funds were remitted, and as it was not completed until after 60 days of year end, the Arc was not able to remit the funds timely, if a return existed. Additionally, the Arc calculated that a return was required for one of their projects however this was related to issues related to the allocation of intercompany payables and receivables, and the Arc did have sufficient current obligations that they were not required to remit funds despite the calculation. Effect The Arc was not in compliance with the Special Tests and Provisions Residual Receipts requirement. Cause Due to lack of internal controls surrounding timely review of project level accounting and reporting, specifically with respect to surplus fund calculations. In addition, no reconciliations of intercompany payables and receivables were completed. Questioned Costs There are no questioned costs related to this finding. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Arc enhance its policies and procedures to ensure responsible program personnel timely completes preliminary assessment of the requirements to calculate surplus funds to ensure no funds are required to be remitted in the 60 day window of year end. Views of Responsible Officials We agree with the finding and have established additional internal controls to ensure future compliance as outlined in our corrective action plan.
Corrective Action Plan: The ARC of Delaware will ensure that there are appropriate procedures in place to ensure that the required calculation of surplus cash is completed with 60-days of year end. ARC of Delaware will also ensure that individuals have appropriate access to HUD Reporting tools to ensure timely calculation. Contact Person Responsible for Correction Action: Stanley Kihara, Controller Completion Date:
FAC accepted this audit on August 20, 2024 — management decision was due February 20, 2025.
future compliance as outlined in our corrective action plan.
Show full finding ▾Hide full finding ▴future compliance as outlined in our corrective action plan.
Anticipated Completion Date: July 15, 2024
FAC accepted this audit on September 15, 2022 — management decision was due March 15, 2023.
Federal Agency U.S. Department of Housing and Urban Development Finding Reference Number 2021-001 Major Federal Program Section 811 Supportive Housing for Personswith Disabilities (14.181) Type of Finding Significant Deficiency, Noncompliance Compliance Requirement Special Tests and Provisions - Residual Receipts Account Criteria Title 24 U.S Code of Federal Regulations Part 891(e) (24 CFR 891(e)), Use of Project Funds, states that any remaining project funds in the project funds account (including earned interest) following the expiration of the fiscal year shall be deposited in a federally-insured residual receipts account within 60 days following the end of the fiscal year. Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, Section 200.303(a) states that non-federal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition During Special Tests and Provisions - Residual Receipts Account testwork, one deposit was noted to require depositing into the residual receipts account. The one deposit in the amount of $20,465 of project funds was selected for testing to determine if it was deposited within the 60 day timeframe following the end of the fiscal year. We noted that the funds were deposited on March 29, 2022, which is 88 days following the end of the fiscal year, therefore the Arc was not in compliance with the requirement. Effect The Arc was not in compliance with the Special Tests and Provisions - Residual Receipts Account requirement. Cause Due to oversight of management the residual receipt was not deposited within the specified compliance timeframe. Questioned Costs There are no questioned costs related to this finding. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding This is not identified as a repeat finding. Recommendation We recommend that the Arc enhance its policies and procedures to ensure that the HUD residual receipts annual deposit is made within the specified compliance timeframe. Views of Responsible Officials The Arc will calculate and analyze cash surplus or deficit for each HUD project annually. This calculation will be prepared by the Controller and reviewed by the Executive Director. If a cash surplus exists, funds will be transferred to a qualified residual receipts account by February 28th for the prior calendar year.
Show full finding ▾Hide full finding ▴Federal Agency U.S. Department of Housing and Urban Development Finding Reference Number 2021-001 Major Federal Program Section 811 Supportive Housing for Personswith Disabilities (14.181) Type of Finding Significant Deficiency, Noncompliance Compliance Requirement Special Tests and Provisions - Residual Receipts Account Criteria Title 24 U.S Code of Federal Regulations Part 891(e) (24 CFR 891(e)), Use of Project Funds, states that any remaining project funds in the project funds account (including earned interest) following the expiration of the fiscal year shall be deposited in a federally-insured residual receipts account within 60 days following the end of the fiscal year. Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, Section 200.303(a) states that non-federal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition During Special Tests and Provisions - Residual Receipts Account testwork, one deposit was noted to require depositing into the residual receipts account. The one deposit in the amount of $20,465 of project funds was selected for testing to determine if it was deposited within the 60 day timeframe following the end of the fiscal year. We noted that the funds were deposited on March 29, 2022, which is 88 days following the end of the fiscal year, therefore the Arc was not in compliance with the requirement. Effect The Arc was not in compliance with the Special Tests and Provisions - Residual Receipts Account requirement. Cause Due to oversight of management the residual receipt was not deposited within the specified compliance timeframe. Questioned Costs There are no questioned costs related to this finding. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding This is not identified as a repeat finding. Recommendation We recommend that the Arc enhance its policies and procedures to ensure that the HUD residual receipts annual deposit is made within the specified compliance timeframe. Views of Responsible Officials The Arc will calculate and analyze cash surplus or deficit for each HUD project annually. This calculation will be prepared by the Controller and reviewed by the Executive Director. If a cash surplus exists, funds will be transferred to a qualified residual receipts account by February 28th for the prior calendar year.
August 17, 2022 Response to Audit Finding 2021-001 Corrective Action Plan: The Arc will calculate and analyze cash surplus or deficit for each HUD project annually. This calculation will be prepared by the Controller and reviewed by the Executive Director. If a cash surplus exists, funds will be transferred to a qualified residual receipts account by February 28th for the prior calendar year. Contact Person Responsible for Corrective Action: Elizabeth Harris, Controller Anticipated Completion Date: February 28, 2023
FAC accepted this audit on September 27, 2018 — management decision was due March 27, 2019.
GSA_MIGRATION
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GSA_MIGRATION
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on September 28, 2017 — management decision was due March 28, 2018.
GSA_MIGRATION
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