Audit 33640

FY End

2022-05-31

Total Expended

$1.31M

Findings

4

Programs

1

Organization: Sli Warren House, INC (MA)

Year: 2022 Accepted: 2023-01-30

Auditor: Cohnreznick

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
32949	2022-001	Material Weakness	-	B
32950	2022-001	Material Weakness	-	B
609391	2022-001	Material Weakness	-	B
609392	2022-001	Material Weakness	-	B

ALN	Program	Spent	Major	Findings
14.181	Supportive Housing for Persons with Disabilities	$192,859	Yes	1

Contacts

Name	Title	Type
E9J8BWQVDML8	Peter Noonan	Auditee
9788522254	Brian Martin	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. SLI Warren House, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1116500.

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. SLI Warren House, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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 award activity of SLI Warren House, Inc., HUD Project No: 023-HD-050, under programs of the federal government for the year ended May 31, 2022. 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 SLI Warren House, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of SLI Warren House, Inc. For the year ended May 31, 2022, no awards were passed through to subrecipients.

Title: Federal Loan Programs Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. SLI Warren House, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal loan programs listed below are administered directly by HUD, and balances and transactions relating to these programs are included in SLI Warren House, Inc.'s basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding as of May 31, 2022 consists of: CFDA Number 14.181, Program Name Section 811, Outstanding May 31, 2022 $1,116,500.

Finding Details

Finding 2022-001

Item #2022-1 ? Control over allowable costs Criteria: The Corporation must have controls in place for to ensure that all costs are allowable. Condition: Internal controls over allowable costs were not consistently followed. Cause: Personnel of the Corporation did not follow internal control procedures when paying certain invoices. Effect or Potential Effect: Failure to approve invoices could result in disbursements of cash made for unallowable expenditures. Questioned Costs: None noted Context: The discovery of the condition was made during sampling allowable cost transactions. During sampling procedures, it was noted that 12 out of 25 transactions did not have approval signoff on the invoices. One out of 25 invoices was not able to be provided to support expense. Recommendation: Management should ensure that internal controls over allowable costs are being followed. Reporting View of Responsible Official: Management of SLI Warren House Inc. agrees with the finding and the auditor's recommendations have been adopted.

Finding 2022-001

Item #2022-1 ? Control over allowable costs Criteria: The Corporation must have controls in place for to ensure that all costs are allowable. Condition: Internal controls over allowable costs were not consistently followed. Cause: Personnel of the Corporation did not follow internal control procedures when paying certain invoices. Effect or Potential Effect: Failure to approve invoices could result in disbursements of cash made for unallowable expenditures. Questioned Costs: None noted Context: The discovery of the condition was made during sampling allowable cost transactions. During sampling procedures, it was noted that 12 out of 25 transactions did not have approval signoff on the invoices. One out of 25 invoices was not able to be provided to support expense. Recommendation: Management should ensure that internal controls over allowable costs are being followed. Reporting View of Responsible Official: Management of SLI Warren House Inc. agrees with the finding and the auditor's recommendations have been adopted.

Finding 2022-001

Item #2022-1 ? Control over allowable costs Criteria: The Corporation must have controls in place for to ensure that all costs are allowable. Condition: Internal controls over allowable costs were not consistently followed. Cause: Personnel of the Corporation did not follow internal control procedures when paying certain invoices. Effect or Potential Effect: Failure to approve invoices could result in disbursements of cash made for unallowable expenditures. Questioned Costs: None noted Context: The discovery of the condition was made during sampling allowable cost transactions. During sampling procedures, it was noted that 12 out of 25 transactions did not have approval signoff on the invoices. One out of 25 invoices was not able to be provided to support expense. Recommendation: Management should ensure that internal controls over allowable costs are being followed. Reporting View of Responsible Official: Management of SLI Warren House Inc. agrees with the finding and the auditor's recommendations have been adopted.

Finding 2022-001

Item #2022-1 ? Control over allowable costs Criteria: The Corporation must have controls in place for to ensure that all costs are allowable. Condition: Internal controls over allowable costs were not consistently followed. Cause: Personnel of the Corporation did not follow internal control procedures when paying certain invoices. Effect or Potential Effect: Failure to approve invoices could result in disbursements of cash made for unallowable expenditures. Questioned Costs: None noted Context: The discovery of the condition was made during sampling allowable cost transactions. During sampling procedures, it was noted that 12 out of 25 transactions did not have approval signoff on the invoices. One out of 25 invoices was not able to be provided to support expense. Recommendation: Management should ensure that internal controls over allowable costs are being followed. Reporting View of Responsible Official: Management of SLI Warren House Inc. agrees with the finding and the auditor's recommendations have been adopted.