FAC Explorer

Audit 18813

FY End
2022-12-31
Total Expended
$6.70M
Findings
4
Programs
1
Organization: Winter Grove, Inc. (CT)
Year: 2022 Accepted: 2023-04-12
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22980 2022-001 Significant Deficiency Yes N
22981 2022-001 Significant Deficiency Yes N
599422 2022-001 Significant Deficiency Yes N
599423 2022-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $210,910 Yes 1

Contacts

Name Title Type
HNJPMB5EPGK1 Tom Cruess Auditee
2035624514 Patricia McGowan 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, as applicable, 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: Winter Grove, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Winter Grove, Inc. HUD Project No. 017-EE118, under programs of the federal government for the year ended December 31, 2022. 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 Winter Grove, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Winter Grove, Inc.
Title: U.S. Department of Housing and Urban Development Loan Program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, 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: Winter Grove, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Winter Grove, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Winter Grove, Inc. received no additional loans during the year. The balance of the loan outstanding at December 31, 2022 consists of: Assistance Listing Number: 14. 157; Program Name: Supportive Housing for the Elderly (Section 202); Outstanding balance at December 31, 2022: $6,491,000

Finding Details

Finding 2022-001
CFDA 14.157 Supportive Housing for the Elderly (Section 202) Finding No. 2022-001 Statement of Condition During the year ended 2022, due to a situation with the bank, the security deposit cash account was not fully funded during various times throughout the year. Cause The bank erroneously transferred dormant account balances as escheated funds to the State of Connecticut in the name of the tenant. Effect or Potential Effect Management did not have sufficient cash balance in the tenant security deposit cash account to cover the security deposit liability as of December 31, 2022. Questioned Costs None Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, HUD projects are required to establish and maintain at all times a fully funded separate bank account for tenant security deposits collected. Auditor Noncompliance Code: M - Security deposits Recommendations 2022-001-a Management should transfer $6,007 from the operating account in order to fully fund the tenant security deposits account. 2022-001-b Management should consolidate the individual security deposit accounts into one interest-bearing account in the name of the Project. The account should also be reconciled on a monthly basis to ensure proper reporting of the activity and account balances. Views of Responsible Officials and Planned Corrective Actions TBD
Finding 2022-001
CFDA 14.157 Supportive Housing for the Elderly (Section 202) Finding No. 2022-001 Statement of Condition During the year ended 2022, due to a situation with the bank, the security deposit cash account was not fully funded during various times throughout the year. Cause The bank erroneously transferred dormant account balances as escheated funds to the State of Connecticut in the name of the tenant. Effect or Potential Effect Management did not have sufficient cash balance in the tenant security deposit cash account to cover the security deposit liability as of December 31, 2022. Questioned Costs None Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, HUD projects are required to establish and maintain at all times a fully funded separate bank account for tenant security deposits collected. Auditor Noncompliance Code: M - Security deposits Recommendations 2022-001-a Management should transfer $6,007 from the operating account in order to fully fund the tenant security deposits account. 2022-001-b Management should consolidate the individual security deposit accounts into one interest-bearing account in the name of the Project. The account should also be reconciled on a monthly basis to ensure proper reporting of the activity and account balances. Views of Responsible Officials and Planned Corrective Actions TBD
Finding 2022-001
CFDA 14.157 Supportive Housing for the Elderly (Section 202) Finding No. 2022-001 Statement of Condition During the year ended 2022, due to a situation with the bank, the security deposit cash account was not fully funded during various times throughout the year. Cause The bank erroneously transferred dormant account balances as escheated funds to the State of Connecticut in the name of the tenant. Effect or Potential Effect Management did not have sufficient cash balance in the tenant security deposit cash account to cover the security deposit liability as of December 31, 2022. Questioned Costs None Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, HUD projects are required to establish and maintain at all times a fully funded separate bank account for tenant security deposits collected. Auditor Noncompliance Code: M - Security deposits Recommendations 2022-001-a Management should transfer $6,007 from the operating account in order to fully fund the tenant security deposits account. 2022-001-b Management should consolidate the individual security deposit accounts into one interest-bearing account in the name of the Project. The account should also be reconciled on a monthly basis to ensure proper reporting of the activity and account balances. Views of Responsible Officials and Planned Corrective Actions TBD
Finding 2022-001
CFDA 14.157 Supportive Housing for the Elderly (Section 202) Finding No. 2022-001 Statement of Condition During the year ended 2022, due to a situation with the bank, the security deposit cash account was not fully funded during various times throughout the year. Cause The bank erroneously transferred dormant account balances as escheated funds to the State of Connecticut in the name of the tenant. Effect or Potential Effect Management did not have sufficient cash balance in the tenant security deposit cash account to cover the security deposit liability as of December 31, 2022. Questioned Costs None Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, HUD projects are required to establish and maintain at all times a fully funded separate bank account for tenant security deposits collected. Auditor Noncompliance Code: M - Security deposits Recommendations 2022-001-a Management should transfer $6,007 from the operating account in order to fully fund the tenant security deposits account. 2022-001-b Management should consolidate the individual security deposit accounts into one interest-bearing account in the name of the Project. The account should also be reconciled on a monthly basis to ensure proper reporting of the activity and account balances. Views of Responsible Officials and Planned Corrective Actions TBD