FAC Explorer

Audit 322563

FY End
2024-06-30
Total Expended
$1.54M
Findings
12
Programs
1
Organization: Facts-Sunrise, Inc. (RI)
Year: 2024 Accepted: 2024-09-30
Auditor: D'ambra CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499740 2024-001 - - N
499741 2024-002 Significant Deficiency Yes C
499742 2024-003 - - N
499743 2024-004 - - N
499744 2024-005 Significant Deficiency - N
499745 2024-006 - - C
1076182 2024-001 - - N
1076183 2024-002 Significant Deficiency Yes C
1076184 2024-003 - - N
1076185 2024-004 - - N
1076186 2024-005 Significant Deficiency - N
1076187 2024-006 - - C

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $238,343 Yes 4

Contacts

Name Title Type
MJXFE4ZTVYR3 Gina Mercure Auditee
4015213603 Craig S 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
: Condition: Tenant certifications contained an error including adult child did not sign lease (1 of 2 files tested), Form 9887 not signed (2 of 2 files tested), lead based certificate not signed (1 of 2 files tested), social security number not verified (1 of 2 files tested) and no EIV (1 of 2 files tested) ; Criteria: The HUD occupancy handbook specified the form and content of the certifications; Effect: The tenant’s and HUD share of rent may be incorrect; Cause: Management oversight. Recommendation: Management should correct the files in error. Management comment: Management has corrected the files in error.
Finding 2024-002
Condition: Operating funds exceeded federal insurance coverage and management has not monitored the bank’s ratings; Criteria: The regulatory agreement requires all funds to be fully insured or management to monitor the banks ratings on a quarterly basis; Effect: Operating funds exceeded FDIC insurance by $14,506; Cause: Management oversight. Recommendation: Management should monitor the bank’s ratings or move funds to provide for full federal insurance coverage. Management comment: Management will move funds to provide for full FDIC insurance coverage.
Finding 2024-003
Condition: 2 security deposits for former tenants have not been refunded; Criteria: the HUD occupancy handbook requires deposits to be returned within 60 days of move-out; Effect: None; Cause: Management oversight. Recommendation: Management should process the refunds. Management comment: Management will process the refunds.
Finding 2024-004
Condition: Tenant security deposit cash is underfunded by $491; Criteria: the HUD occupancy handbook requires security deposits to be fully funded; Effect: Cash is short by $491; Cause: Management oversight. Recommendation: Management should transfer sufficient funds from the operating cash account to fund the shortfall. Management comment: Management will transfer sufficient funds.
Finding 2024-005
Condition: In processing the rental subsidy requests, the old rents were used instead of the correct rents; Criteria: the HUD occupancy handbook requires the tenant subsidy to be based on the gross rent allowed; Effect: the rental subsidy requests were deficient by $71,833; Cause: Management used the old approved rent and not the current approved rent in effect. Recommendation: Management should submit a retroactive subsidy request to correct the deficient rental subsidies. Management comment: Management will submit a retroactive subsidy request.
Finding 2024-006
Condition: The tax and insurance escrow is deficient by $178; Criteria: The HUD management agent handbook specifies that the escrow should have sufficient funds to pay the taxes and insurance when due; Effect: The account is deficient by $178; Cause: Insurance premium increases were not factored into the escrow account maintenance. Recommendation: Management will transfer sufficient funds from the operating cash account to fund the shortfall. Management comment: Management will fund the deficiency.
Finding 2024-001
: Condition: Tenant certifications contained an error including adult child did not sign lease (1 of 2 files tested), Form 9887 not signed (2 of 2 files tested), lead based certificate not signed (1 of 2 files tested), social security number not verified (1 of 2 files tested) and no EIV (1 of 2 files tested) ; Criteria: The HUD occupancy handbook specified the form and content of the certifications; Effect: The tenant’s and HUD share of rent may be incorrect; Cause: Management oversight. Recommendation: Management should correct the files in error. Management comment: Management has corrected the files in error.
Finding 2024-002
Condition: Operating funds exceeded federal insurance coverage and management has not monitored the bank’s ratings; Criteria: The regulatory agreement requires all funds to be fully insured or management to monitor the banks ratings on a quarterly basis; Effect: Operating funds exceeded FDIC insurance by $14,506; Cause: Management oversight. Recommendation: Management should monitor the bank’s ratings or move funds to provide for full federal insurance coverage. Management comment: Management will move funds to provide for full FDIC insurance coverage.
Finding 2024-003
Condition: 2 security deposits for former tenants have not been refunded; Criteria: the HUD occupancy handbook requires deposits to be returned within 60 days of move-out; Effect: None; Cause: Management oversight. Recommendation: Management should process the refunds. Management comment: Management will process the refunds.
Finding 2024-004
Condition: Tenant security deposit cash is underfunded by $491; Criteria: the HUD occupancy handbook requires security deposits to be fully funded; Effect: Cash is short by $491; Cause: Management oversight. Recommendation: Management should transfer sufficient funds from the operating cash account to fund the shortfall. Management comment: Management will transfer sufficient funds.
Finding 2024-005
Condition: In processing the rental subsidy requests, the old rents were used instead of the correct rents; Criteria: the HUD occupancy handbook requires the tenant subsidy to be based on the gross rent allowed; Effect: the rental subsidy requests were deficient by $71,833; Cause: Management used the old approved rent and not the current approved rent in effect. Recommendation: Management should submit a retroactive subsidy request to correct the deficient rental subsidies. Management comment: Management will submit a retroactive subsidy request.
Finding 2024-006
Condition: The tax and insurance escrow is deficient by $178; Criteria: The HUD management agent handbook specifies that the escrow should have sufficient funds to pay the taxes and insurance when due; Effect: The account is deficient by $178; Cause: Insurance premium increases were not factored into the escrow account maintenance. Recommendation: Management will transfer sufficient funds from the operating cash account to fund the shortfall. Management comment: Management will fund the deficiency.