Audit 301572

FY End

2023-06-30

Total Expended

$7.29M

Findings

2

Programs

1

Organization: Saugatucket Spring INC (RI)

Year: 2023 Accepted: 2024-04-01

Auditor: Damiano Burk & Nuttall

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
390867	2023-001	Significant Deficiency	-	C
967309	2023-001	Significant Deficiency	-	C

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$261,485	Yes	1

Contacts

Name	Title	Type
MPTMN5HJ77L8	Frank Shea	Auditee
4019412900	Victoria Sylvia	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Saugatucket Springs, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. The Section 202 program amount is reported as a capital advance during the entire compliance period. Rodman Commons, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. The Section 202 program amount is reported as a capital advance during the entire compliance period. De Minimis Rate Used: Y Rate Explanation: The Auditee used the de minimis cost rate Supportive Housing for the Elderly(14.157)- Balances outstanding at the end of the audit period were $7,289,685

Finding Details

Finding 2023-001

Finding 2023-001: Supportive Elderly Housing Section 202 Condition: The tenant security deposit account was underfunded as of June 30, 2023. Criteria: Security deposits for each tenant are required to maintained in a separate bank account, apart from those maintained for operations and development. Effect: The Partnership are no longer in compliance with the rules and regulations regarding tenant security deposits as required by HUD. Cause: The Partnership does not have internal controls in place to ensure that tenant security deposits are transferred on a timely basis from the operating bank account. The Partnership experienced high turnover during the year.Recommendation: The Partnership should design and implement internal controls to ensure that all security deposits are transferred in the required time period. Management should also conduct a monthly inspection of the security deposit listing. Views of Responsible Officials and Planned Corrective Actions: Management is in agreement with the auditors’ findings. Management has hired additional personnel to review all matters related to tenant compliance.

Finding 2023-001

Finding 2023-001: Supportive Elderly Housing Section 202 Condition: The tenant security deposit account was underfunded as of June 30, 2023. Criteria: Security deposits for each tenant are required to maintained in a separate bank account, apart from those maintained for operations and development. Effect: The Partnership are no longer in compliance with the rules and regulations regarding tenant security deposits as required by HUD. Cause: The Partnership does not have internal controls in place to ensure that tenant security deposits are transferred on a timely basis from the operating bank account. The Partnership experienced high turnover during the year.Recommendation: The Partnership should design and implement internal controls to ensure that all security deposits are transferred in the required time period. Management should also conduct a monthly inspection of the security deposit listing. Views of Responsible Officials and Planned Corrective Actions: Management is in agreement with the auditors’ findings. Management has hired additional personnel to review all matters related to tenant compliance.