FAC Explorer

Audit 303527

FY End
2023-09-30
Total Expended
$1.65M
Findings
8
Programs
1
Organization: Leeway-Welton Housing Corporation (CT)
Year: 2023 Accepted: 2024-04-15
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393256 2023-001 Significant Deficiency - N
393257 2023-002 Significant Deficiency - N
393258 2023-001 Significant Deficiency - N
393259 2023-002 Significant Deficiency - N
969698 2023-001 Significant Deficiency - N
969699 2023-002 Significant Deficiency - N
969700 2023-001 Significant Deficiency - N
969701 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $133,783 Yes 2

Contacts

Name Title Type
M8Y7E4G2PG13 Jay Katz Auditee
2038650068 Jonathan Fink Auditor
No contacts on file

Notes to SEFA

Title: HUD CAPITAL ADVANCE Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Leeway-Welton Housing Corporation under programs of the federal government for the year ended September 30, 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 Leeway-Welton Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Leeway-Welton Housing Corporation. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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: Leeway-Welton Housing Corporation has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The balance of the HUD capital advance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. There were no additional HUD loans during the year. The balance of the HUD insured mortgage outstanding at September 30, 2023 is as follows: Federal Assistance Listing Number -- Loan Program -- Outstanding Loans 14.181 -- Supportive Housing for Persons With Disabilities (Section 811): Capital Advances -- $ 1,515,800

Finding Details

Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing Number: 14.181 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Deposits required by HUD were not made during fiscal year 2023 to the reserve fund. Condition: During the 2023 audit, we noted that the Project had not deposited the amounts required by HUD to be deposited monthly in the reserve fund for all of fiscal year 2023. Questioned Costs: $8,580 in reserve fund deposits not made. Context: Through audit compliance testing procedures, three months of bank reconciliations were tested and identified that the required monthly deposit was not made. Through further inquiry and review it was identified that all 12 deposits of fiscal year 2023 were not made and recorded as a liability. Cause: Due to cash constraints caused by rental income delays the Project was unable to make the deposits. Effect: The Project did not make sufficient deposits. Repeat Finding: None Recommendation: We recommend the Project make all fiscal year 2023 deposits as soon as funds allow. Views of Responsible Officials: There is no disagreement with the audit finding. Management has received the delayed rental income payments and is working to make the back deposits.
Finding 2023-002
Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing Number: 14.181 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Unauthorized disbursements from the reserve fund were made. Condition: During the 2023 audit, we noted that the Project had made unauthorized withdrawals from the reserve fund. Questioned Costs: $6,011 in unauthorized withdrawals were made. Context: Through audit compliance testing procedures, it was identified there were no withdrawals made during fiscal year 2023 authorized by HUD, however through additional procedures over the reserve there were three withdrawals identified. Cause: Due to cash constraints caused by rental income delays the Project was required to make withdrawals to continue operations. Effect: The Project did not make authorized withdrawals. Repeat Finding: None Recommendation: We recommend the Project return the withdrawn funds back to the reserve funds when the funds allow. Views of Responsible Officials: There is no disagreement with the audit finding. Management has received the delayed rental income payments and is working to return the funds.
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing Number: 14.181 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Deposits required by HUD were not made during fiscal year 2023 to the reserve fund. Condition: During the 2023 audit, we noted that the Project had not deposited the amounts required by HUD to be deposited monthly in the reserve fund for all of fiscal year 2023. Questioned Costs: $8,580 in reserve fund deposits not made. Context: Through audit compliance testing procedures, three months of bank reconciliations were tested and identified that the required monthly deposit was not made. Through further inquiry and review it was identified that all 12 deposits of fiscal year 2023 were not made and recorded as a liability. Cause: Due to cash constraints caused by rental income delays the Project was unable to make the deposits. Effect: The Project did not make sufficient deposits. Repeat Finding: None Recommendation: We recommend the Project make all fiscal year 2023 deposits as soon as funds allow. Views of Responsible Officials: There is no disagreement with the audit finding. Management has received the delayed rental income payments and is working to make the back deposits.
Finding 2023-002
Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing Number: 14.181 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Unauthorized disbursements from the reserve fund were made. Condition: During the 2023 audit, we noted that the Project had made unauthorized withdrawals from the reserve fund. Questioned Costs: $6,011 in unauthorized withdrawals were made. Context: Through audit compliance testing procedures, it was identified there were no withdrawals made during fiscal year 2023 authorized by HUD, however through additional procedures over the reserve there were three withdrawals identified. Cause: Due to cash constraints caused by rental income delays the Project was required to make withdrawals to continue operations. Effect: The Project did not make authorized withdrawals. Repeat Finding: None Recommendation: We recommend the Project return the withdrawn funds back to the reserve funds when the funds allow. Views of Responsible Officials: There is no disagreement with the audit finding. Management has received the delayed rental income payments and is working to return the funds.
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing Number: 14.181 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Deposits required by HUD were not made during fiscal year 2023 to the reserve fund. Condition: During the 2023 audit, we noted that the Project had not deposited the amounts required by HUD to be deposited monthly in the reserve fund for all of fiscal year 2023. Questioned Costs: $8,580 in reserve fund deposits not made. Context: Through audit compliance testing procedures, three months of bank reconciliations were tested and identified that the required monthly deposit was not made. Through further inquiry and review it was identified that all 12 deposits of fiscal year 2023 were not made and recorded as a liability. Cause: Due to cash constraints caused by rental income delays the Project was unable to make the deposits. Effect: The Project did not make sufficient deposits. Repeat Finding: None Recommendation: We recommend the Project make all fiscal year 2023 deposits as soon as funds allow. Views of Responsible Officials: There is no disagreement with the audit finding. Management has received the delayed rental income payments and is working to make the back deposits.
Finding 2023-002
Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing Number: 14.181 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Unauthorized disbursements from the reserve fund were made. Condition: During the 2023 audit, we noted that the Project had made unauthorized withdrawals from the reserve fund. Questioned Costs: $6,011 in unauthorized withdrawals were made. Context: Through audit compliance testing procedures, it was identified there were no withdrawals made during fiscal year 2023 authorized by HUD, however through additional procedures over the reserve there were three withdrawals identified. Cause: Due to cash constraints caused by rental income delays the Project was required to make withdrawals to continue operations. Effect: The Project did not make authorized withdrawals. Repeat Finding: None Recommendation: We recommend the Project return the withdrawn funds back to the reserve funds when the funds allow. Views of Responsible Officials: There is no disagreement with the audit finding. Management has received the delayed rental income payments and is working to return the funds.
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing Number: 14.181 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Deposits required by HUD were not made during fiscal year 2023 to the reserve fund. Condition: During the 2023 audit, we noted that the Project had not deposited the amounts required by HUD to be deposited monthly in the reserve fund for all of fiscal year 2023. Questioned Costs: $8,580 in reserve fund deposits not made. Context: Through audit compliance testing procedures, three months of bank reconciliations were tested and identified that the required monthly deposit was not made. Through further inquiry and review it was identified that all 12 deposits of fiscal year 2023 were not made and recorded as a liability. Cause: Due to cash constraints caused by rental income delays the Project was unable to make the deposits. Effect: The Project did not make sufficient deposits. Repeat Finding: None Recommendation: We recommend the Project make all fiscal year 2023 deposits as soon as funds allow. Views of Responsible Officials: There is no disagreement with the audit finding. Management has received the delayed rental income payments and is working to make the back deposits.
Finding 2023-002
Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing Number: 14.181 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Unauthorized disbursements from the reserve fund were made. Condition: During the 2023 audit, we noted that the Project had made unauthorized withdrawals from the reserve fund. Questioned Costs: $6,011 in unauthorized withdrawals were made. Context: Through audit compliance testing procedures, it was identified there were no withdrawals made during fiscal year 2023 authorized by HUD, however through additional procedures over the reserve there were three withdrawals identified. Cause: Due to cash constraints caused by rental income delays the Project was required to make withdrawals to continue operations. Effect: The Project did not make authorized withdrawals. Repeat Finding: None Recommendation: We recommend the Project return the withdrawn funds back to the reserve funds when the funds allow. Views of Responsible Officials: There is no disagreement with the audit finding. Management has received the delayed rental income payments and is working to return the funds.