Audit 26780

FY End

2022-06-30

Total Expended

$4.79M

Findings

2

Programs

2

Organization: Saint Elizabeth Manor, Inc. (CT)

Year: 2022 Accepted: 2022-11-08

Auditor: Cohnreznick LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
30783	2022-001	Material Weakness	-	N
607225	2022-001	Material Weakness	-	N

ALN	Program	Spent	Major	Findings
14.134	Mortgage Insurance_rental Housing	$4.12M	Yes	1
14.195	Section 8 Housing Assistance Payments Program	$670,290	-	0

Contacts

Name	Title	Type
KQZVXWKLATD3	Jonathan Ramsay	Auditee
8603422224	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. Suchexpenditures are recognized following, as applicable, the cost principles contained in OMB CircularA-122, Cost Principles for Non-Profit Organizations, and/or the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. De Minimis Rate Used: N Rate Explanation: Saint Elizabeth Manor, Inc. has elected not to use the 10-percent de minimis indirect cost rateallowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes thefederal grant activity of Saint Elizabeth Manor, Inc., FHA Project Number: 017-EH120 underprograms of the federal government for the year ended June 30, 2022. The information in thisSchedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only aselected portion of the operations of Saint Elizabeth Manor, Inc., it is not intended to and does notpresent the financial position, changes in net assets, or cash flows of Saint Elizabeth Manor, Inc.For the year ended June 30, 2022, no awards were passed through to subrecipients.

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. Suchexpenditures are recognized following, as applicable, the cost principles contained in OMB CircularA-122, Cost Principles for Non-Profit Organizations, and/or the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. De Minimis Rate Used: N Rate Explanation: Saint Elizabeth Manor, Inc. has elected not to use the 10-percent de minimis indirect cost rateallowed under the Uniform Guidance. Saint Elizabeth Manor, Inc. has received mortgage insurance from the U.S. Department of Housingand Urban Development under Section 207 pursuant to Section 223(f) of the National Housing Act.The mortgage balance outstanding at the beginning of the year is included in the federalexpenditures presented in the Schedule. Saint Elizabeth Manor, Inc. received no additionalproceeds during the year. The balance of the outstanding loan insured by HUD at June 30, 2022consists of: Federal Assistance Listing Number: 14.134; Program Name: Mortgage Insurance Rental Housing; Outstanding Balanceat June 30, 2022: $4,054,218

Finding Details

Finding 2022-001

Department of Housing and Urban Development Finding No. 2022-001; Federal Assistance Listing Number 14.134, Mortgage Insurance ? Rental Housing Criteria Residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended June 30, 2022, management did not make the required residual receipt reserve deposit in the amount of $65,729 within 90 days of year end, as required by the regulatory agreement. The residual receipts amount was deposited on November 12, 2021. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Organization is not in compliance with the requirements of the regulatory agreement. Questioned Costs None Context The error was made in the surplus cash required to be deposited within 90 days of year end. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B ? Failure to make required residual receipts deposits Views of Responsible Officials Management will review the property's surplus calculation closer to year end to determine if there is surplus cash, management will deposit funds into the residual receipts account in a timely manner.

Finding 2022-001

Department of Housing and Urban Development Finding No. 2022-001; Federal Assistance Listing Number 14.134, Mortgage Insurance ? Rental Housing Criteria Residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended June 30, 2022, management did not make the required residual receipt reserve deposit in the amount of $65,729 within 90 days of year end, as required by the regulatory agreement. The residual receipts amount was deposited on November 12, 2021. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Organization is not in compliance with the requirements of the regulatory agreement. Questioned Costs None Context The error was made in the surplus cash required to be deposited within 90 days of year end. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B ? Failure to make required residual receipts deposits Views of Responsible Officials Management will review the property's surplus calculation closer to year end to determine if there is surplus cash, management will deposit funds into the residual receipts account in a timely manner.