FAC Explorer

Audit 327369

FY End
2024-06-30
Total Expended
$3.05M
Findings
4
Programs
1
Organization: Frederick Court Development Corporation (MA)
Year: 2024 Accepted: 2024-11-05
Auditor: Sanders Walsh & Eaton CPAS LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504749 2024-001 - - N
504750 2024-001 - - N
1081191 2024-001 - - N
1081192 2024-001 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $180,352 Yes 1

Contacts

Name Title Type
QGNGHSYFM861 Li Huang Auditee
6172437000 Ivan Tutov 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal rental assistance of Frederick Court Development Corporation under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Frederick Court Development Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of Frederick Court Development Corporation.The dollar threshold used to distinguish Type A and Type B programs according to 2CFR 200.518(b)(1) is determined to be $750,000. There were no awards received that were passed through to subrecipients.
Title: FEDERAL AWARDS EXPENDED FOR LOAN OR LOAN GUARANTEE PROGRAMS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate Balances of loan and loan guarantee programs outstanding as of June 30, 2023 for loans described in 2 CFR section 200.502(b) areas follows were assistance listing number 14.157-$ 2,865,000.

Finding Details

Finding 2024-001
2024-001 Funding of Replacement Reserve Criteria: According to 24 CFR 891.605, the Project shall make monthly deposits to the replacement reserve account in an amount determined by HUD. Condition: Through our testing of the 12 monthly replacement reserve deposits, we noted the Project did not make 9 monthly deposits totaling $41,243 within the year under audit. Cause: The Project experienced cash flow shortages that caused delay of the Project's replacement reserve deposits. Effect: The Project replacement reserve account was underfunded during the year. Questioned Cost: None noted Recommendation: Establish effective budgeted cash flow projections for the fiscal year in order to plan for and timely resolve any liquidity issues. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost.
Finding 2024-001
2024-001 Funding of Replacement Reserve Criteria: According to 24 CFR 891.605, the Project shall make monthly deposits to the replacement reserve account in an amount determined by HUD. Condition: Through our testing of the 12 monthly replacement reserve deposits, we noted the Project did not make 9 monthly deposits totaling $41,243 within the year under audit. Cause: The Project experienced cash flow shortages that caused delay of the Project's replacement reserve deposits. Effect: The Project replacement reserve account was underfunded during the year. Questioned Cost: None noted Recommendation: Establish effective budgeted cash flow projections for the fiscal year in order to plan for and timely resolve any liquidity issues. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost.
Finding 2024-001
2024-001 Funding of Replacement Reserve Criteria: According to 24 CFR 891.605, the Project shall make monthly deposits to the replacement reserve account in an amount determined by HUD. Condition: Through our testing of the 12 monthly replacement reserve deposits, we noted the Project did not make 9 monthly deposits totaling $41,243 within the year under audit. Cause: The Project experienced cash flow shortages that caused delay of the Project's replacement reserve deposits. Effect: The Project replacement reserve account was underfunded during the year. Questioned Cost: None noted Recommendation: Establish effective budgeted cash flow projections for the fiscal year in order to plan for and timely resolve any liquidity issues. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost.
Finding 2024-001
2024-001 Funding of Replacement Reserve Criteria: According to 24 CFR 891.605, the Project shall make monthly deposits to the replacement reserve account in an amount determined by HUD. Condition: Through our testing of the 12 monthly replacement reserve deposits, we noted the Project did not make 9 monthly deposits totaling $41,243 within the year under audit. Cause: The Project experienced cash flow shortages that caused delay of the Project's replacement reserve deposits. Effect: The Project replacement reserve account was underfunded during the year. Questioned Cost: None noted Recommendation: Establish effective budgeted cash flow projections for the fiscal year in order to plan for and timely resolve any liquidity issues. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost.