Audit 31955

FY End

2022-10-31

Total Expended

$1.48M

Findings

4

Programs

3

Organization: The Senior Housing Corporation of East Haddam, Inc. (CT)

Year: 2022 Accepted: 2023-05-30

Auditor: Hoyt Filippetti & Malaghan LLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
31377	2022-002	-	-	P
31378	2022-002	-	-	P
607819	2022-002	-	-	P
607820	2022-002	-	-	P

ALN	Program	Spent	Major	Findings
10.415	Rural Rental Housing Loans	$121,301	Yes	1
14.195	Section 8 Housing Assistance Payments Program	$118,730	-	0
10.427	Rural Rental Assistance Payments	$65,320	-	0

Contacts

Name	Title	Type
FA2KQ1EN6CES	Johanne L'italien	Auditee
8603985425	Susan Jones	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE A - ACCOUNTING BASISBASIC FINANCIAL STATEMENTSThe accounting policies of The Senior Housing Corporation of East Haddam, Inc. conform toaccounting principles generally accepted in the United States of America as applicable tononprofit organizations.SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSThe accompanying schedule of expenditures of federal awards has been prepared on theaccrual basis consistent with the preparation of the basic financial statements. Informationincluded in the schedule of expenditures of federal awards is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance).For cost reimbursement awards, revenues are recognized to the extent of expenditures.Expenditures have been recognized to the extent the related obligation was incurred within theapplicable grant period and liquidated within 90 days after the end of the grant period.For performance-based awards, revenues are recognized to the extent of performance achievedduring the grant period.The Senior Housing Corporation of East Haddam, Inc. has not elected to use the 10% deMinimis indirect cost rate.The October 31, 2022 ending balances of the U.S. Department of Agriculture loans includedon the accompanying schedule of expenditures of federal awards was $1,135,596. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002

2022-002 RESERVE ACCOUNT FUNDING Criteria: The Project?s reserve account must be fully funded and maintained in a separate bank account. Condition: During our audit testing, we noted that while the Project maintained a separate bank account for reserves, it was not fully funded. Cause: Yearly budgeted transfers were not made to ensure the account is fully funded. Effect: Reserve bank account is underfunded. Questioned Costs: None noted. Recommendation: The Project should implement controls to ensure that the reserve bank account is fully funded. Management?s Views and Corrective Action Plan: Management will correct this when sufficient funds are able to be transferred into the reserve account.

Finding 2022-002

2022-002 RESERVE ACCOUNT FUNDING Criteria: The Project?s reserve account must be fully funded and maintained in a separate bank account. Condition: During our audit testing, we noted that while the Project maintained a separate bank account for reserves, it was not fully funded. Cause: Yearly budgeted transfers were not made to ensure the account is fully funded. Effect: Reserve bank account is underfunded. Questioned Costs: None noted. Recommendation: The Project should implement controls to ensure that the reserve bank account is fully funded. Management?s Views and Corrective Action Plan: Management will correct this when sufficient funds are able to be transferred into the reserve account.

Finding 2022-002

2022-002 RESERVE ACCOUNT FUNDING Criteria: The Project?s reserve account must be fully funded and maintained in a separate bank account. Condition: During our audit testing, we noted that while the Project maintained a separate bank account for reserves, it was not fully funded. Cause: Yearly budgeted transfers were not made to ensure the account is fully funded. Effect: Reserve bank account is underfunded. Questioned Costs: None noted. Recommendation: The Project should implement controls to ensure that the reserve bank account is fully funded. Management?s Views and Corrective Action Plan: Management will correct this when sufficient funds are able to be transferred into the reserve account.

Finding 2022-002

2022-002 RESERVE ACCOUNT FUNDING Criteria: The Project?s reserve account must be fully funded and maintained in a separate bank account. Condition: During our audit testing, we noted that while the Project maintained a separate bank account for reserves, it was not fully funded. Cause: Yearly budgeted transfers were not made to ensure the account is fully funded. Effect: Reserve bank account is underfunded. Questioned Costs: None noted. Recommendation: The Project should implement controls to ensure that the reserve bank account is fully funded. Management?s Views and Corrective Action Plan: Management will correct this when sufficient funds are able to be transferred into the reserve account.