Audit 310440

FY End
2023-06-30
Total Expended
$6.54M
Findings
6
Programs
1
Organization: 25 School Street, INC (MA)
Year: 2023 Accepted: 2024-06-27
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
403263 2023-001 Material Weakness - A
403264 2023-002 Material Weakness - A
403265 2023-003 Material Weakness - A
979705 2023-001 Material Weakness - A
979706 2023-002 Material Weakness - A
979707 2023-003 Material Weakness - A

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $378,226 Yes 0

Contacts

Name Title Type
CQHLAGNLRUL3 Natalya Leshchiner Auditee
6174695800 Karen Harris 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, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations", and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: 25 School Street, Inc. has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of 25 School Street, Inc., HUD Project No. 023-EE173, under programs of the federal government for the period July 1, 2021 through June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 25 School Street, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of 25 School Street, 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. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations", and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: 25 School Street, Inc. has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. 25 School Street, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. 25 School Street, Inc. received no additional loans during the year. The balance of the loan outstanding at June 30, 2023 consists of Federal Assistance Listing Number 14.157; Program Name - Section 202 Capital Advance; Outstanding Balance at June 30, 2023 - $6,165,000.

Finding Details

During the year ended June 30, 2023, the project did not make the required monthly deposits to the replacement reserve in the amount of $7,378. The project is required to make monthly deposits to the reserve in the amount of $3,689.
In connection with lease file testing, we noted 1 out of 4 tenant files did not have an EIV income report at the time of the annual recertification
In connection with lease file testing, we noted that of the 1 move-in tenant that we tested, the tenant's income was not reviewed by the project, using an EIV income report, within 90 days after transmission of the move-in certification to the Tenant Rental Assistance Certification System during the initial certification process.
During the year ended June 30, 2023, the project did not make the required monthly deposits to the replacement reserve in the amount of $7,378. The project is required to make monthly deposits to the reserve in the amount of $3,689.
In connection with lease file testing, we noted 1 out of 4 tenant files did not have an EIV income report at the time of the annual recertification
In connection with lease file testing, we noted that of the 1 move-in tenant that we tested, the tenant's income was not reviewed by the project, using an EIV income report, within 90 days after transmission of the move-in certification to the Tenant Rental Assistance Certification System during the initial certification process.