FAC Explorer

Audit 29299

FY End
2022-08-31
Total Expended
$5.01M
Findings
8
Programs
1
Organization: Pembroke Housing for the Elderly, Inc. (NH)
Year: 2022 Accepted: 2022-12-08
Auditor: Leone McDonnell & Roberts P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
37488 2022-001 - Yes N
37489 2022-002 Significant Deficiency - N
37490 2022-001 - Yes N
37491 2022-002 Significant Deficiency - N
613930 2022-001 - Yes N
613931 2022-002 Significant Deficiency - N
613932 2022-001 - Yes N
613933 2022-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $4.82M Yes 2

Contacts

Name Title Type
LM1NSFRJY9G7 Jill Lesmerises Auditee
6032253295 Shauna Brown Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards includes the federal award activityof Pembroke Housing for the Elderly, Inc., HUD Project No. 024-EE102-WAH, and is presented onthe accrual basis of accounting. The information in this schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Because the Schedule presents only a selected portion of the operations of Pembroke Housing forthe Elderly, Inc., it is not intended to and does not present the financial position, changes in netassets, or cash flows of Pembroke Housing for the Elderly, Inc.NOTE B: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance,wherein certain types of expenditures are not allowable or are limited as to reimbursement.Pembroke Housing for the Elderly, Inc. has elected not to use the 10 percent de mini mis indirectcost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 4815848.

Finding Details

Finding 2022-001
Department of Housing and Urban Development - Section 202 for the Elderly 14.157 2022-001 Condition: One of the monthly Reserve for Replacement deposits was not deposited in the correct month. Criteria: HUD requires monthly deposits to the Reserve for Replacement account. Effect: Monthly deposit was not made timely. Context: Auditor reviewed the monthly bank statements and noted one deposit was not made in the correct month. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all monthly reserve for replacement deposits are made timely.
Finding 2022-002
2022-002 SIGNIFICANT DEFICIENCY Condition: Deposits and payments made to/from the wrong accounts. Criteria: The Organization is required to make monthly deposits and escrow payments. The Organization is prohibited from making payments on behalf of other entities. Effect: Reserve underfunded. Context: Auditor noted during testing of journal entries and restricted cash accounts that some deposits were not made to the correct account and an expense was paid for the wrong entity. The error was corrected upon discovery. Cause: Staffing turnover Recommendation: A procedure be implemented to reconcile all deposits and transactions in a timely manner. 30
Finding 2022-001
Department of Housing and Urban Development - Section 202 for the Elderly 14.157 2022-001 Condition: One of the monthly Reserve for Replacement deposits was not deposited in the correct month. Criteria: HUD requires monthly deposits to the Reserve for Replacement account. Effect: Monthly deposit was not made timely. Context: Auditor reviewed the monthly bank statements and noted one deposit was not made in the correct month. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all monthly reserve for replacement deposits are made timely.
Finding 2022-002
2022-002 SIGNIFICANT DEFICIENCY Condition: Deposits and payments made to/from the wrong accounts. Criteria: The Organization is required to make monthly deposits and escrow payments. The Organization is prohibited from making payments on behalf of other entities. Effect: Reserve underfunded. Context: Auditor noted during testing of journal entries and restricted cash accounts that some deposits were not made to the correct account and an expense was paid for the wrong entity. The error was corrected upon discovery. Cause: Staffing turnover Recommendation: A procedure be implemented to reconcile all deposits and transactions in a timely manner. 30
Finding 2022-001
Department of Housing and Urban Development - Section 202 for the Elderly 14.157 2022-001 Condition: One of the monthly Reserve for Replacement deposits was not deposited in the correct month. Criteria: HUD requires monthly deposits to the Reserve for Replacement account. Effect: Monthly deposit was not made timely. Context: Auditor reviewed the monthly bank statements and noted one deposit was not made in the correct month. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all monthly reserve for replacement deposits are made timely.
Finding 2022-002
2022-002 SIGNIFICANT DEFICIENCY Condition: Deposits and payments made to/from the wrong accounts. Criteria: The Organization is required to make monthly deposits and escrow payments. The Organization is prohibited from making payments on behalf of other entities. Effect: Reserve underfunded. Context: Auditor noted during testing of journal entries and restricted cash accounts that some deposits were not made to the correct account and an expense was paid for the wrong entity. The error was corrected upon discovery. Cause: Staffing turnover Recommendation: A procedure be implemented to reconcile all deposits and transactions in a timely manner. 30
Finding 2022-001
Department of Housing and Urban Development - Section 202 for the Elderly 14.157 2022-001 Condition: One of the monthly Reserve for Replacement deposits was not deposited in the correct month. Criteria: HUD requires monthly deposits to the Reserve for Replacement account. Effect: Monthly deposit was not made timely. Context: Auditor reviewed the monthly bank statements and noted one deposit was not made in the correct month. Cause: Lack of oversight by management agent. Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all monthly reserve for replacement deposits are made timely.
Finding 2022-002
2022-002 SIGNIFICANT DEFICIENCY Condition: Deposits and payments made to/from the wrong accounts. Criteria: The Organization is required to make monthly deposits and escrow payments. The Organization is prohibited from making payments on behalf of other entities. Effect: Reserve underfunded. Context: Auditor noted during testing of journal entries and restricted cash accounts that some deposits were not made to the correct account and an expense was paid for the wrong entity. The error was corrected upon discovery. Cause: Staffing turnover Recommendation: A procedure be implemented to reconcile all deposits and transactions in a timely manner. 30