FAC Explorer

Audit 316892

FY End
2023-12-31
Total Expended
$22.98M
Findings
2
Programs
1
Organization: Preservation of Affordable Housing, INC (MA)
Year: 2023 Accepted: 2024-08-08
Auditor: Cohnreznick

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
480680 2023-001 Significant Deficiency - J
1057122 2023-001 Significant Deficiency - J

Programs

ALN Program Spent Major Findings
21.011 Capital Magnet Fund $22.98M Yes 1

Contacts

Name Title Type
RESKNQ3RBA54 Allison Adduci Auditee
6174490870 Ken Slater Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes federal award activity of Preservation of Affordable Housing, Inc. and Subsidiaries under various programs of the federal government for the year ended December 31, 2023. The information in this Scheudle is presented in accordance with the requirement 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 Preservation of Affordable Housing, Inc. and Subsidiaries, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of Preservation of Affordable Housing, Inc. and Subsidiaries. Expenditures reported on the Schedule are reported on teh accrual basis of accounting. Such expenditures are recognized following the cost principles contained in teh Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Preservation of Affordable Housing, Inc. and Subsidiaries has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding No. 2023-001 U.S. Department of the Treasury, Community Development Financial Institutions Fund Federal Assistance Listing Number #21.011 Capital Magnet Fund - Compliance Requirement: J – Program Income Criteria In accordance with 2 CFR, Part 200.305(9), interest earned on advance payments in excess of $500 per year must be remitted annually to the Department of Health and Human Services, Payment Management System. Condition During our testing, we noted that the Organization did not remit interest earned on advance payments. Cause Interest earned on advance payments was calculated, however the Organization did not have adequate procedures and controls in place to ensure the interest was remitted. Effect or Potential Effect Failure to remit interest earned on advance payments could result in misuse of funds. Questioned Costs: Not applicable. Context For two program income samples out of a total two tested, management did not remit a total of $148,180 related to 2023 interest earned on advance payments. Repeat Finding: No Recommendation Management should establish controls to ensure the annual remittance of interest earned on advance payments in excess of $500. Views of Responsible Officials In 2024, all required interest refunds were remitted. Additionally, management established a policy to remit annual calculated interest refunds by March 31st of the subsequent year.
Finding 2023-001
Finding No. 2023-001 U.S. Department of the Treasury, Community Development Financial Institutions Fund Federal Assistance Listing Number #21.011 Capital Magnet Fund - Compliance Requirement: J – Program Income Criteria In accordance with 2 CFR, Part 200.305(9), interest earned on advance payments in excess of $500 per year must be remitted annually to the Department of Health and Human Services, Payment Management System. Condition During our testing, we noted that the Organization did not remit interest earned on advance payments. Cause Interest earned on advance payments was calculated, however the Organization did not have adequate procedures and controls in place to ensure the interest was remitted. Effect or Potential Effect Failure to remit interest earned on advance payments could result in misuse of funds. Questioned Costs: Not applicable. Context For two program income samples out of a total two tested, management did not remit a total of $148,180 related to 2023 interest earned on advance payments. Repeat Finding: No Recommendation Management should establish controls to ensure the annual remittance of interest earned on advance payments in excess of $500. Views of Responsible Officials In 2024, all required interest refunds were remitted. Additionally, management established a policy to remit annual calculated interest refunds by March 31st of the subsequent year.