Audit 3264

FY End
2023-06-30
Total Expended
$3.41M
Findings
2
Programs
1
Year: 2023 Accepted: 2023-11-15

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1865 2023-001 Significant Deficiency - N
578307 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $3.41M Yes 1

Contacts

Name Title Type
PDUMHJ3WHEQ4 Ellen Mason Auditee
6172824290 Andrew Bacigalupo Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 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 Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Ditson Street Senior Housing, Inc. (the Organization), HUD Project No. 023-EE030, under programs of the Federal government for the year ended June 30, 2023. 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 Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: Summary of Significant Accounting Policies Accounting Policies: 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 Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance 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 Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Capital Advance and Loan Assistance Accounting Policies: 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 Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance The Section 202 Capital Advance which was received in prior fiscal years is included on the Schedule at its outstanding balance as of July 1, 2022, as it includes continuing compliance requirements from HUD. There were no additional proceeds received or payments made on this loan during 2023. At June 30, 2023 the outstanding balance was $2,929,900.
Title: Subrecipients Accounting Policies: 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 Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance There were no federal awards passed through to subrecipients by the Organizations during the fiscal year ended 2023.

Finding Details

2023-001 Replacement Reserve Deposits Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program: 14.571 Supportive Housing for the Elderly Condition: Required monthly deposits to the replacement reserve account were not made for three out of twelve months. Criteria: An amount, as required by HUD, will be deposited monthly in the reserve fund. Cause: The Organization did not have sufficient cash flow in order to make the required deposits into the replacement reserve fund and meet the Organization’s other obligations as they became due. Effect: Monthly required deposits to the replacement reserve fund were not made. Context: A sample of twelve months were selected for the replacement reserve account to determine if the monthly required deposits were deposited in accordance with HUD requirements. Our test found that for three months, the monthly required deposit was not made. Our sample was not a statistically valid sample. This was not a repeat finding from a prior period. Questioned Costs: None Recommendations: Management should ensure that the required deposits to the replacement reserve are made in accordance with the agreements. Management Response: The Organization’s unit rents are not at a level to fund the Organization’s operations and properly maintain the project’s maintenance which required the Organization to prioritize paying its utility bills and other required immediate operating costs during the year. See management’s attached corrective action plan for additional information.
2023-001 Replacement Reserve Deposits Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program: 14.571 Supportive Housing for the Elderly Condition: Required monthly deposits to the replacement reserve account were not made for three out of twelve months. Criteria: An amount, as required by HUD, will be deposited monthly in the reserve fund. Cause: The Organization did not have sufficient cash flow in order to make the required deposits into the replacement reserve fund and meet the Organization’s other obligations as they became due. Effect: Monthly required deposits to the replacement reserve fund were not made. Context: A sample of twelve months were selected for the replacement reserve account to determine if the monthly required deposits were deposited in accordance with HUD requirements. Our test found that for three months, the monthly required deposit was not made. Our sample was not a statistically valid sample. This was not a repeat finding from a prior period. Questioned Costs: None Recommendations: Management should ensure that the required deposits to the replacement reserve are made in accordance with the agreements. Management Response: The Organization’s unit rents are not at a level to fund the Organization’s operations and properly maintain the project’s maintenance which required the Organization to prioritize paying its utility bills and other required immediate operating costs during the year. See management’s attached corrective action plan for additional information.