FAC Explorer

Audit 323609

FY End
2024-06-30
Total Expended
$1.57M
Findings
6
Programs
1
Organization: Malm Manor, Inc. (RI)
Year: 2024 Accepted: 2024-10-02
Auditor: D'ambra CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
501564 2024-001 - - N
501565 2024-002 - - C
501566 2024-003 - - C
1078006 2024-001 - - N
1078007 2024-002 - - C
1078008 2024-003 - - C

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $225,568 Yes 1

Contacts

Name Title Type
EBLLQQTDG9R9 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 incorrect medical deductions (1 of 1 file tested), incorrect income calculation (1 of 1 file tested), and security deposit per lease does not agree to detail (1 of 1 file 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 file in error. Management comment: Management has corrected the errors in the file.
Finding 2024-002
Condition: the prior year surplus cash totaling $12,142 was not deposited to the residual receipts; Criteria: the HUD handbook requires surplus cash to be deposited to the residual receipts account; Effect: the residual receipts account is understated by $12,142; Cause: Management oversight. Recommendation: Management should deposit the current year surplus cash totaling $47,364 which includes the prior year surplus cash totaling $12,142. Management comment: Management will transfer the funds.
Finding 2024-003
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 $65,791; 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 2024-001
: Condition: Tenant certifications contained an error including incorrect medical deductions (1 of 1 file tested), incorrect income calculation (1 of 1 file tested), and security deposit per lease does not agree to detail (1 of 1 file 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 file in error. Management comment: Management has corrected the errors in the file.
Finding 2024-002
Condition: the prior year surplus cash totaling $12,142 was not deposited to the residual receipts; Criteria: the HUD handbook requires surplus cash to be deposited to the residual receipts account; Effect: the residual receipts account is understated by $12,142; Cause: Management oversight. Recommendation: Management should deposit the current year surplus cash totaling $47,364 which includes the prior year surplus cash totaling $12,142. Management comment: Management will transfer the funds.
Finding 2024-003
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 $65,791; 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.