FAC Explorer

Audit 23295

FY End
2022-12-31
Total Expended
$9.35M
Findings
2
Programs
1
Organization: Preservation of Affordable Housing, INC (MA)
Year: 2022 Accepted: 2023-07-18
Auditor: Preservation of Affordable Housing LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
25952 2022-001 Significant Deficiency - E
602394 2022-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
21.011 Capital Magnet Fund $9.35M Yes 1

Contacts

Name Title Type
RESKNQ3RBA54 Allison Adduci Auditee
6174490870 Karen Smith Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes federalaward activity of Preservation of Affordable Housing, Inc. and Subsidiaries under various programsof the federal government for the year ended December 31, 2022. The information in this Scheduleis presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards ("Uniform Guidance"). Because the Schedule presents only a selected portion of theoperations of Preservation of Affordable Housing, Inc. and Subsidiaries, it is not intended to anddoes not present the consolidated financial position, changes in net assets, or cash flows ofPreservation of Affordable Housing, Inc. and Subsidiaries. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Finding No. 2022-001 U.S. Department of the Treasury, Community Development Financial Institutions Fund Federal Assistance Listing Number #21.011 Capital Magnet Fund - Compliance Requirement: E - Eligibility Criteria 2016 Capital Magnet Fund Assistance Agreement Section 5.2(b) Rental Affordability Qualifications: Project-level targeted income requires at least 20% of all rental units in each project to be occupied by tenants at or below 50% of Area Median Income (?AMI?). Condition The internal controls over tracking the income limitation on one of the six properties tested was not consistently followed. Cause One of the six properties tested had tenants certified by a housing authority, so management followed alternate procedures on tracking income. Effect or Potential Effect Project-level targeted income of at least 20% units occupied by tenants at or below 50% of AMI may be below the requirement. Questioned Costs: Not applicable. Context In connection with the procedures applied to a sample of six projects, one project?s income verification process followed alternate procedures which could result in error. Repeat Finding: No Recommendation For the project which followed an alternate process, management should follow the same procedures utilizing Yardi that they follow on the other projects. Management should input the income restrictions into Yardi and should also input the annual tenant income data into Yardi for this project.
Finding 2022-001
Finding No. 2022-001 U.S. Department of the Treasury, Community Development Financial Institutions Fund Federal Assistance Listing Number #21.011 Capital Magnet Fund - Compliance Requirement: E - Eligibility Criteria 2016 Capital Magnet Fund Assistance Agreement Section 5.2(b) Rental Affordability Qualifications: Project-level targeted income requires at least 20% of all rental units in each project to be occupied by tenants at or below 50% of Area Median Income (?AMI?). Condition The internal controls over tracking the income limitation on one of the six properties tested was not consistently followed. Cause One of the six properties tested had tenants certified by a housing authority, so management followed alternate procedures on tracking income. Effect or Potential Effect Project-level targeted income of at least 20% units occupied by tenants at or below 50% of AMI may be below the requirement. Questioned Costs: Not applicable. Context In connection with the procedures applied to a sample of six projects, one project?s income verification process followed alternate procedures which could result in error. Repeat Finding: No Recommendation For the project which followed an alternate process, management should follow the same procedures utilizing Yardi that they follow on the other projects. Management should input the income restrictions into Yardi and should also input the annual tenant income data into Yardi for this project.