Audit 1193

FY End

2023-06-30

Total Expended

$4.93M

Findings

4

Programs

2

Organization: Stevens Senior Housing of Ludlow, Inc. (MA)

Year: 2023 Accepted: 2023-10-24

Auditor: Daniel Dennis and Company LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
617	2023-001	Significant Deficiency	-	N
618	2023-001	Significant Deficiency	-	N
577059	2023-001	Significant Deficiency	-	N
577060	2023-001	Significant Deficiency	-	N

ALN	Program	Spent	Major	Findings
14.239	Home Investment Partnerships Program	$415,000	-	0
14.157	Supportive Housing for the Elderly	$124,657	Yes	1

Contacts

Name	Title	Type
JFXJG898UAH5	Dolores Scott	Auditee
4132331701	Michael Driscoll	Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the accompanying 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 the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Stevens Senior Housing of Ludlow, Inc. HUD Project No. 023-EE241 (the Organization) has elected not to use to 10% de minimus indirect cost rate as allowed under the Uniform Guidance. The Schedule includes the federal award activity of the Organization under programs of the Federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.

Title: CAPITAL ADVANCE AND LOAN ASSISTANCE Accounting Policies: Expenditures reported on the accompanying 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 the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Stevens Senior Housing of Ludlow, Inc. HUD Project No. 023-EE241 (the Organization) has elected not to use to 10% de minimus indirect cost rate as allowed under the Uniform Guidance. The Section 202 capital advance (the Capital Advance) and HOME loan which were received in prior fiscal years are included on the Schedule at their outstanding balances as of July 1, 2022 plus additional proceeds received in 2023 as they include continuing compliance requirements from the U.S. Department of Housing and Urban Development. During fiscal year 2023, no additional proceeds were received and no payments made on the Capital Advance or HOME loan. At June 30, 2023, the outstanding capital advance and HOME loan balances were $4,391,300 and $415,000, respectively.

Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the accompanying 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 the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Stevens Senior Housing of Ludlow, Inc. HUD Project No. 023-EE241 (the Organization) has elected not to use to 10% de minimus indirect cost rate as allowed under the Uniform Guidance. There were no pass through federal awards made to subrecipients by the Organization during 2023.

Finding Details

Finding 2023-001

Condition - One expenditure in the amount of $4,368 belonged to another project and was paid by Stevens Senior Housing of Ludlow, Inc. Context - Forty expenditures totaling $108,378 were sampled out of a total population of two hundred seventeen expenditures totaling $285,867. Criteria - In accordance with the OMB Compliance Supplement, project funds must be used for the operation of the project (including required insurance coverage) and to make required deposits to replacement reserve and the residual receipts accounts. Cause - Due to an administrative error, the invoice was erroneously coded to Stevens Senior Housing of Ludlow, Inc. Effect - Project funds paid for an expenditure that did not relate to the Project’s operations. Questioned Costs - None Repeat Finding - No Recommendation - We recommend that management return the $4,368 to the Project's operating account. Management Response - Management agrees with the finding. See management’s attached corrective action plan.

Finding 2023-001

Condition - One expenditure in the amount of $4,368 belonged to another project and was paid by Stevens Senior Housing of Ludlow, Inc. Context - Forty expenditures totaling $108,378 were sampled out of a total population of two hundred seventeen expenditures totaling $285,867. Criteria - In accordance with the OMB Compliance Supplement, project funds must be used for the operation of the project (including required insurance coverage) and to make required deposits to replacement reserve and the residual receipts accounts. Cause - Due to an administrative error, the invoice was erroneously coded to Stevens Senior Housing of Ludlow, Inc. Effect - Project funds paid for an expenditure that did not relate to the Project’s operations. Questioned Costs - None Repeat Finding - No Recommendation - We recommend that management return the $4,368 to the Project's operating account. Management Response - Management agrees with the finding. See management’s attached corrective action plan.

Finding 2023-001

Condition - One expenditure in the amount of $4,368 belonged to another project and was paid by Stevens Senior Housing of Ludlow, Inc. Context - Forty expenditures totaling $108,378 were sampled out of a total population of two hundred seventeen expenditures totaling $285,867. Criteria - In accordance with the OMB Compliance Supplement, project funds must be used for the operation of the project (including required insurance coverage) and to make required deposits to replacement reserve and the residual receipts accounts. Cause - Due to an administrative error, the invoice was erroneously coded to Stevens Senior Housing of Ludlow, Inc. Effect - Project funds paid for an expenditure that did not relate to the Project’s operations. Questioned Costs - None Repeat Finding - No Recommendation - We recommend that management return the $4,368 to the Project's operating account. Management Response - Management agrees with the finding. See management’s attached corrective action plan.

Finding 2023-001

Condition - One expenditure in the amount of $4,368 belonged to another project and was paid by Stevens Senior Housing of Ludlow, Inc. Context - Forty expenditures totaling $108,378 were sampled out of a total population of two hundred seventeen expenditures totaling $285,867. Criteria - In accordance with the OMB Compliance Supplement, project funds must be used for the operation of the project (including required insurance coverage) and to make required deposits to replacement reserve and the residual receipts accounts. Cause - Due to an administrative error, the invoice was erroneously coded to Stevens Senior Housing of Ludlow, Inc. Effect - Project funds paid for an expenditure that did not relate to the Project’s operations. Questioned Costs - None Repeat Finding - No Recommendation - We recommend that management return the $4,368 to the Project's operating account. Management Response - Management agrees with the finding. See management’s attached corrective action plan.