FAC Explorer

Audit 310441

FY End
2023-12-31
Total Expended
$6.67M
Findings
8
Programs
2
Organization: 419 Walnut, Inc. 023-Ee235 (MA)
Year: 2023 Accepted: 2024-06-27
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
403266 2023-001 Material Weakness - A
403267 2023-002 Material Weakness - A
403268 2023-001 Material Weakness - A
403269 2023-002 Material Weakness - A
979708 2023-001 Material Weakness - A
979709 2023-002 Material Weakness - A
979710 2023-001 Material Weakness - A
979711 2023-002 Material Weakness - A

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $5.69M Yes 2
14.239 Home Investment Partnerships Program $984,210 Yes 2

Contacts

Name Title Type
KQYZYFNJ9UT3 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 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: 419 Walnut, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of 419 Walnut, Inc. (HUD Project No.: 023-EE235) 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 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 419 Walnut, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of 419 Walnut, Inc. For the year ended December 31, 2023, no awards were passed through to subrecipients.
Title: U.S. Department of Housing and Urban Development loan programs 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. De Minimis Rate Used: N Rate Explanation: 419 Walnut, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 419 Walnut, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act and a HOME Investment Partnerships Program ("HOME loan") loan. The loan balances outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. The balances of the loans outstanding at December 31, 2023 consist of Federal Assistance Listing Number 14.157 and 14.239; Supporttive Housing for the Elderly (Section 202) HOME Investment Partnership Program. Outstanding Balance at December 31, 2023 - $6,672,810.

Finding Details

Finding 2023-001
In connection with lease file testing, we noted 4 out of 4 tenant files did not have an EIV income report at the time of the annual recertification.
Finding 2023-002
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.
Finding 2023-001
In connection with lease file testing, we noted 4 out of 4 tenant files did not have an EIV income report at the time of the annual recertification.
Finding 2023-002
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.
Finding 2023-001
In connection with lease file testing, we noted 4 out of 4 tenant files did not have an EIV income report at the time of the annual recertification.
Finding 2023-002
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.
Finding 2023-001
In connection with lease file testing, we noted 4 out of 4 tenant files did not have an EIV income report at the time of the annual recertification.
Finding 2023-002
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.