Audit 302692

FY End

2023-12-31

Total Expended

$4.50M

Findings

2

Programs

1

Organization: Nevins Manor, Inc. (MA)

Year: 2023 Accepted: 2024-04-05

Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
392365	2023-001	Significant Deficiency	-	N
968807	2023-001	Significant Deficiency	-	N

ALN	Program	Spent	Major	Findings
14.157	Section 202 Supportive Housing for the Elderly	$4.50M	Yes	1

Contacts

Name	Title	Type
Z422TQVX41U1	Joyce Shannon	Auditee
9786851050	Jennifer Corliss	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 the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Nevins Manor, Inc. has not elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Nevins Manor, Inc. under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Nevins Manor, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Nevins Manor, Inc.

Title: ENDING LOAN BALANCE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures 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. Nevins Manor, Inc. has not elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The ending Section 202 loan balance is $3,882,700 at December 31, 2023.

Finding Details

Finding 2023-001

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Supportive Housing for the Elderly Assistance Listing Number: 14.157 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: HUD requires that loan advances from the Reserve for Replacement escrow be repaid within three months of the advance of funds. Condition: Loan advances of $30,000 from February 2023 and $38,500 from June 2023 were not repaid to the Reserve for Replacement escrow within three months and approval was not obtained from HUD to delay the repayment period. Questioned costs: None Context: The Organization made seven withdrawals from the Reserve for Replacement escrow during the period under audit. Two of these withdrawals were loan advances to cover cash shortfalls from operations while the Project awaited the increase in rental rates effective February 1, 2023 which was not paid by HUD until the third quarter of 2023. Cause: The Organization did not have appropriate controls in place to monitor the timely repayment of loan advances from the Reserve for Replacement escrow. Effect: There were no negative effects to the Project. Repeat Finding: No. Recommendation: We recommend that the Organization obtain approval from HUD to repay the loan advances after the initial due date and to establish internal controls to monitor the repayment of loan advances to ensure compliance with HUD requirements. Views of responsible officials: There is no disagreement with the audit finding. We have improved our controls to avoid this from happening again.

Finding 2023-001

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Supportive Housing for the Elderly Assistance Listing Number: 14.157 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: HUD requires that loan advances from the Reserve for Replacement escrow be repaid within three months of the advance of funds. Condition: Loan advances of $30,000 from February 2023 and $38,500 from June 2023 were not repaid to the Reserve for Replacement escrow within three months and approval was not obtained from HUD to delay the repayment period. Questioned costs: None Context: The Organization made seven withdrawals from the Reserve for Replacement escrow during the period under audit. Two of these withdrawals were loan advances to cover cash shortfalls from operations while the Project awaited the increase in rental rates effective February 1, 2023 which was not paid by HUD until the third quarter of 2023. Cause: The Organization did not have appropriate controls in place to monitor the timely repayment of loan advances from the Reserve for Replacement escrow. Effect: There were no negative effects to the Project. Repeat Finding: No. Recommendation: We recommend that the Organization obtain approval from HUD to repay the loan advances after the initial due date and to establish internal controls to monitor the repayment of loan advances to ensure compliance with HUD requirements. Views of responsible officials: There is no disagreement with the audit finding. We have improved our controls to avoid this from happening again.