FAC Explorer

Audit 322738

FY End
2023-12-31
Total Expended
$2.32M
Findings
4
Programs
1
Organization: Thompson House Inc. (MA)
Year: 2023 Accepted: 2024-09-30
Auditor: John P Sannella CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499866 2023-001 Material Weakness Yes C
499867 2023-002 Material Weakness Yes C
1076308 2023-001 Material Weakness Yes C
1076309 2023-002 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $2.32M Yes 2

Contacts

Name Title Type
K33MVXGENS95 Ronald Bridge Auditee
9787740445 John P Sannella Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Accrual Basis De Minimis Rate Used: N Rate Explanation: No overhead rate was used The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Thompson House, Inc. 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 2 CFR 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 Thompson House, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Thompson House, Inc.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Accrual Basis De Minimis Rate Used: N Rate Explanation: No overhead rate was used 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Thompson House, Inc. has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued Accounting Policies: Accrual Basis De Minimis Rate Used: N Rate Explanation: No overhead rate was used Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE 3 - ENDING LOAN BALANCE Accounting Policies: Accrual Basis De Minimis Rate Used: N Rate Explanation: No overhead rate was used The ending Section 811 loan balance is $2,016,100 at December 31, 2023.

Finding Details

Finding 2023-001
2023-001 Federal agency: Department of Housing and Urban Development Federal program: Section 811 - Supportive Housing for Persons with Disabilities CFDA Number: 14.181 Type of Finding: • Material Weakness in Internal Control over Compliance • Compliance – Material Criteria or Specific Requirement: Deposits to the Replacement Reserve should be made on a monthly basis. Condition: Monthly deposits of $5,000 per month for 2022 and $6,000 per month for 2023 should be made into the Replacement Reserve account. The deposits were only made for 7 months in 2022 and 1 month for 2023. Questioned Costs. $91,000 Context: Procedures were performed to test the activity in the Replacement Reserve account for 2023, which determined that the proper deposits were not made through 2023. Cause: Controls were not followed to ensure that the proper amounts were being deposited into the Replacement Reserve account. Effect: The Replacement Reserve account is under funded by $91,000. Repeat Finding: Yes. Recommendation: The Project should deposit the $91,000 into the Replacement Reserve account as soon as possible. Views of Responsible Officials and Corrective Action: In March 2024, management deposited $69,000 into the Replacement Reserve. Management intends to deposit the $22,000 withing the next week. A monthly process has been established to insure that the monthly required deposits to the Replacement Reserve are made on a current basis.
Finding 2023-002
2023-002 Federal agency: Department of Housing and Urban Development Federal program: Section 811 - Supportive Housing for Persons with Disabilities CFDA Number: 14.181 Type of Finding: • Material Weakness in Internal Control over Compliance • Compliance – Material Criteria or Specific Requirement: The HUD regulatory agreement requires that surplus cash should be deposited into a residual receipts account within 60 days of year end. Condition: At December 31, 2023 the Project had surplus cash totaling $44,704 and the amount was not deposited into a residual receipts account. Questioned Costs. $44,704 Context: A computation of surplus cash was performed as of December 31, 2023 resulting in surplus cash of $44,704. Cause: Controls were not followed to ensure that surplus cash amounts were computed and transferred to a residual receipts account in a timely fashion. Effect: A timely deposit was not made to a residual receipts account. Repeat Finding: Yes, this is a repeat finding from 2020. Recommendation: A deposit of $44,704 should be made to the residual receipts account. Views of Responsible Officials and Corrective Action: Management intends to make a deposit of $44,704 to the residual receipts account within the next 30 days.
Finding 2023-001
2023-001 Federal agency: Department of Housing and Urban Development Federal program: Section 811 - Supportive Housing for Persons with Disabilities CFDA Number: 14.181 Type of Finding: • Material Weakness in Internal Control over Compliance • Compliance – Material Criteria or Specific Requirement: Deposits to the Replacement Reserve should be made on a monthly basis. Condition: Monthly deposits of $5,000 per month for 2022 and $6,000 per month for 2023 should be made into the Replacement Reserve account. The deposits were only made for 7 months in 2022 and 1 month for 2023. Questioned Costs. $91,000 Context: Procedures were performed to test the activity in the Replacement Reserve account for 2023, which determined that the proper deposits were not made through 2023. Cause: Controls were not followed to ensure that the proper amounts were being deposited into the Replacement Reserve account. Effect: The Replacement Reserve account is under funded by $91,000. Repeat Finding: Yes. Recommendation: The Project should deposit the $91,000 into the Replacement Reserve account as soon as possible. Views of Responsible Officials and Corrective Action: In March 2024, management deposited $69,000 into the Replacement Reserve. Management intends to deposit the $22,000 withing the next week. A monthly process has been established to insure that the monthly required deposits to the Replacement Reserve are made on a current basis.
Finding 2023-002
2023-002 Federal agency: Department of Housing and Urban Development Federal program: Section 811 - Supportive Housing for Persons with Disabilities CFDA Number: 14.181 Type of Finding: • Material Weakness in Internal Control over Compliance • Compliance – Material Criteria or Specific Requirement: The HUD regulatory agreement requires that surplus cash should be deposited into a residual receipts account within 60 days of year end. Condition: At December 31, 2023 the Project had surplus cash totaling $44,704 and the amount was not deposited into a residual receipts account. Questioned Costs. $44,704 Context: A computation of surplus cash was performed as of December 31, 2023 resulting in surplus cash of $44,704. Cause: Controls were not followed to ensure that surplus cash amounts were computed and transferred to a residual receipts account in a timely fashion. Effect: A timely deposit was not made to a residual receipts account. Repeat Finding: Yes, this is a repeat finding from 2020. Recommendation: A deposit of $44,704 should be made to the residual receipts account. Views of Responsible Officials and Corrective Action: Management intends to make a deposit of $44,704 to the residual receipts account within the next 30 days.