FAC Explorer

Audit 333017

FY End
2023-06-30
Total Expended
$5.31M
Findings
4
Programs
1
Organization: Memorial Community Corporation Dba Cedar Spring Terrace (RI)
Year: 2023 Accepted: 2024-12-17
Auditor: Damiano Burk & Nuttall

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
514641 2023-001 Material Weakness Yes P
514642 2023-002 Material Weakness Yes C
1091083 2023-001 Material Weakness Yes P
1091084 2023-002 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $280,178 Yes 2

Contacts

Name Title Type
GFRJLKKD6PC3 Jennifer Huynh Auditee
4017390100 Victoria Sylvia Auditor
No contacts on file

Notes to SEFA

Title: Note to the Schedule Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Memorial Community Corporation and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. The Section 202 program amount is reported as a capital advance during the entire compliance period. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Memorial Community Corporation and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. The Section 202 program amount is reported as a capital advance during the entire compliance period.

Finding Details

Finding 2023-001
Criteria: Properly maintained tenant files are supposed to include all required items. Information on Universe Population Size: 62 tenants. Sample Size: 7 tenants. Effect or Potential Effect: The Company is not in compliance with its Project Rental Assistance Contract to receive subsidies. Recommendation: Management has designed and implemented internal controls to ensure all required documentation is collected and maintained for all tenants and will conduct an inspection of all tenant files to ensure completeness. Management’s Response: Management agrees with the auditors’ finding and recommendation. Statement of Condition: Two tenant files selected from a sample of seven tenant files tested were missing one or more of the required documents including:  Annual recertification not signed (1 file)  Pre-rental application (1 file) Cause: Management had an oversight in internal controls to ensure that all required documents are maintained in tenant files. However, the pre-rental application and 2022 recertification signature precedes the time from when Phoenix Property Management Co. took over management. Effect or Potential Effect: The Company is not in compliance with its Project Rental Assistance Contract to receive subsidies. Recommendation: Management has designed and implemented internal controls to ensure all required documentation is collected and maintained for all tenants and will conduct an inspection of all tenant files to ensure completeness. Management’s Response: Management agrees with the auditors’ finding and recommendation.
Finding 2023-002
Criteria: The Project shall make monthly deposits to the replacement reserve in accordance with its Capital Advance Regulatory Agreement. Statement of Condition: The Project was delinquent in making the required monthly contributions to the replacement reserve. Cause: The previous management agent did not perform the annual certifications within the time frame required. As a result, the subsidy was not received for a period of fourteen months. The property was unable to remit the replacement reserve deposits until the subsidy was received. Effect or Potential Effect: The Company is not in compliance with its Capital Advance Regulatory Agreement. Recommendation: Management has designed and implemented internal controls to ensure that deposits are made timely to the replacement reserve. Management’s Response: Management agrees with the auditors’ finding and recommendation.
Finding 2023-001
Criteria: Properly maintained tenant files are supposed to include all required items. Information on Universe Population Size: 62 tenants. Sample Size: 7 tenants. Effect or Potential Effect: The Company is not in compliance with its Project Rental Assistance Contract to receive subsidies. Recommendation: Management has designed and implemented internal controls to ensure all required documentation is collected and maintained for all tenants and will conduct an inspection of all tenant files to ensure completeness. Management’s Response: Management agrees with the auditors’ finding and recommendation. Statement of Condition: Two tenant files selected from a sample of seven tenant files tested were missing one or more of the required documents including:  Annual recertification not signed (1 file)  Pre-rental application (1 file) Cause: Management had an oversight in internal controls to ensure that all required documents are maintained in tenant files. However, the pre-rental application and 2022 recertification signature precedes the time from when Phoenix Property Management Co. took over management. Effect or Potential Effect: The Company is not in compliance with its Project Rental Assistance Contract to receive subsidies. Recommendation: Management has designed and implemented internal controls to ensure all required documentation is collected and maintained for all tenants and will conduct an inspection of all tenant files to ensure completeness. Management’s Response: Management agrees with the auditors’ finding and recommendation.
Finding 2023-002
Criteria: The Project shall make monthly deposits to the replacement reserve in accordance with its Capital Advance Regulatory Agreement. Statement of Condition: The Project was delinquent in making the required monthly contributions to the replacement reserve. Cause: The previous management agent did not perform the annual certifications within the time frame required. As a result, the subsidy was not received for a period of fourteen months. The property was unable to remit the replacement reserve deposits until the subsidy was received. Effect or Potential Effect: The Company is not in compliance with its Capital Advance Regulatory Agreement. Recommendation: Management has designed and implemented internal controls to ensure that deposits are made timely to the replacement reserve. Management’s Response: Management agrees with the auditors’ finding and recommendation.