FAC Explorer

Audit 3384

FY End
2023-06-30
Total Expended
$4.95M
Findings
4
Programs
1
Organization: Elder Care Two, Inc. (RI)
Year: 2023 Accepted: 2023-11-16
Auditor: D'ambra CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1972 2023-001 - - B
1973 2023-002 - - N
578414 2023-001 - - B
578415 2023-002 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $373,688 Yes 1

Contacts

Name Title Type
HK6NPCKJJCG6 Diane Mederos Auditee
4012532080 Craig D'ambra 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 2023-001
Federal program - Capital advance; Criteria - the management agreement provides for a fee based on actual collections; Condition - management overcharged the fee by $2,523; Cause - management included the rental subsidy when it was not collected; Recommendation - the management agent should offset the unpaid balances by the overcharge. Response: Management will offset the unpaid balance by the overcharge.
Finding 2023-002
Federal program - PRAC; Criteria - The HUD Occupancy handbook specifies the nature and content of the tenant income re/certifications; Condition - in testing tenant /certification files, I noted the following errors: (1) incorrect income (1 of 5 files) and incorrect deductions (1 of 5 files); Cause - management oversight; Recommendation - management should review the files for completeness and correct the errors. Response: Management has corrected the errors.
Finding 2023-001
Federal program - Capital advance; Criteria - the management agreement provides for a fee based on actual collections; Condition - management overcharged the fee by $2,523; Cause - management included the rental subsidy when it was not collected; Recommendation - the management agent should offset the unpaid balances by the overcharge. Response: Management will offset the unpaid balance by the overcharge.
Finding 2023-002
Federal program - PRAC; Criteria - The HUD Occupancy handbook specifies the nature and content of the tenant income re/certifications; Condition - in testing tenant /certification files, I noted the following errors: (1) incorrect income (1 of 5 files) and incorrect deductions (1 of 5 files); Cause - management oversight; Recommendation - management should review the files for completeness and correct the errors. Response: Management has corrected the errors.