FAC Explorer

Audit 319211

FY End
2024-06-30
Total Expended
$5.02M
Findings
6
Programs
1
Organization: Elder Care Two, Inc. (RI)
Year: 2024 Accepted: 2024-09-10
Auditor: D'ambra CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496318 2024-001 - - P
496319 2024-002 - - P
496320 2024-003 - - B
1072760 2024-001 - - P
1072761 2024-002 - - P
1072762 2024-003 - - B

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $443,215 Yes 1

Contacts

Name Title Type
HK6NPCKJJCG6 Diane Mederos Auditee
4012532080 Craig Dambra Auditor
No contacts on file

Notes to SEFA

Title: 1 Accounting Policies: ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS RATE BUT ACTUAL COSTS The schedule of expenditures of federal awards includes the federal award activity of the Corporation. 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 the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation.
Title: 2 Accounting Policies: ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS RATE BUT ACTUAL COSTS 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. The Corporation has elected not to use the 10 percent de-minimis indirect cost rate allowed under the Uniform Guidance.
Title: 3 Accounting Policies: ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS RATE BUT ACTUAL COSTS The Corporation received loans directly or indirectly from the U.S. Department of Housing and Urban Development which are included above. If there were no current year advances on the loan, the loan balance above reflects the beginning of the year balance. If there were advances on the loan, the loan balance above reflects the highest balance during the year.
Title: 4 Accounting Policies: ACCRUAL BASIS De Minimis Rate Used: N Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS RATE BUT ACTUAL COSTS Certain grants, while fully expended, contain continuing compliance requirements and are thus included in the Schedule.

Finding Details

Finding 2024-001
Federal program - Capital advance; Criteria - the HUD management agent handbook requires that all cash funds be fully insured or management monitors the banks ratings; Condition - cash funds exceed the FDIC limit by $6,052 and the banks ratings were not monitored; Cause - management has an arrangement with the bank to sweep excess reserve funds over a certain dollar amount, however, due to the rent increase, the operating account caused the cash balances at one institution to exceed the FDIC limit; Recommendation - the management agent should increase the sweep balance to provide for full FDIC coverage. Response: Management will increase the sweep balance.
Finding 2024-002
Federal program - PRAC; Criteria - The HUD Occupancy handbook specifies the nature and content of the tenant income re/certifications; Condition - in testing tenant /certification files, I noted the following error: (1) assets not verified (1 of 5 files); Cause - management oversight; Recommendation - management should review the file for completeness and correct the error. Response: Management has corrected the error.
Finding 2024-003
Federal program - Capital advance; Criteria - The HUD Management handbook specifies the nature and content of allowable expenses; Condition - the Corporation erroneous paid the real estate tax bill for a related entity and that entity paid the Corporation tax, resulting in a underpayment by the Corporation totaling $3,680; Cause - management oversight; Recommendation - management should arrange to reimburse the related entity from the Corporation. Response: Management has corrected the error.
Finding 2024-001
Federal program - Capital advance; Criteria - the HUD management agent handbook requires that all cash funds be fully insured or management monitors the banks ratings; Condition - cash funds exceed the FDIC limit by $6,052 and the banks ratings were not monitored; Cause - management has an arrangement with the bank to sweep excess reserve funds over a certain dollar amount, however, due to the rent increase, the operating account caused the cash balances at one institution to exceed the FDIC limit; Recommendation - the management agent should increase the sweep balance to provide for full FDIC coverage. Response: Management will increase the sweep balance.
Finding 2024-002
Federal program - PRAC; Criteria - The HUD Occupancy handbook specifies the nature and content of the tenant income re/certifications; Condition - in testing tenant /certification files, I noted the following error: (1) assets not verified (1 of 5 files); Cause - management oversight; Recommendation - management should review the file for completeness and correct the error. Response: Management has corrected the error.
Finding 2024-003
Federal program - Capital advance; Criteria - The HUD Management handbook specifies the nature and content of allowable expenses; Condition - the Corporation erroneous paid the real estate tax bill for a related entity and that entity paid the Corporation tax, resulting in a underpayment by the Corporation totaling $3,680; Cause - management oversight; Recommendation - management should arrange to reimburse the related entity from the Corporation. Response: Management has corrected the error.