Audit 341508

FY End
2024-06-30
Total Expended
$2.20M
Findings
2
Programs
1
Year: 2024 Accepted: 2025-02-06
Auditor: Cohnreznick LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
522250 2024-001 Significant Deficiency - C
1098692 2024-001 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $131,049 Yes 0

Contacts

Name Title Type
NG75PBHHY1F3 Julia Cerna Auditee
5105821460 Lisa Schoepflin Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - 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, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Corporations" and 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: San Leandro Supportive Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of San Leandro Supportive Housing, Inc., HUD Project No. 121-HD073-NPWDD 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 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 San Leandro Supportive Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of San Leandro Supportive Housing, Inc. For the year ended June 30, 2024, no awards were passed through to sub-recipients.
Title: Note 2 - 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, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Corporations" and 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: San Leandro Supportive Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Corporations" and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 - Indirect cost rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Corporations" and 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: San Leandro Supportive Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. San Leandro Supportive Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4 - U.S. Department of Housing and Urban Development forgivable loan program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Corporations" and 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: San Leandro Supportive Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The loan balances outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. San Leandro Supportive Housing, Inc. received no additional loans during the year. The forgivable loan balance outstanding as of June 30, 2024 consists of: See Notes to the SEFA for chart/table

Finding Details

Department of Housing and Urban Development Finding No. 2024-001; Section 811 Capital Advance - Supportive Housing for Persons with Disabilities Criteria Any withdrawal from the residual receipts reserve requires HUD approval. Condition During the year ended June 30, 2024, management withdrew $8,409 from the residual receipts reserve without HUD approval. Cause The amount was withdrawn from the residual receipts reserve in error. Effect or Potential Effect The withdrawal of $8,409 is an unauthorized withdrawal from the residual receipts reserve. Questioned Costs Questioned costs totaled $8,409, comprising the withdrawal from the residual receipts reserve. Context In connection with the procedures applied to test compliance with reserve requirements, there was one instance where management withdrew $8,409 from the residual receipts reserve without HUD approval. Identification as a Repeat Finding Not a repeat finding. Recommendation Management should immediately deposit $8,409 into the residual receipts reserve. Auditor Noncompliance Code: C - Unauthorized withdrawal from residual receipts accounts. Finding Resolution Status: Unresolved. The Project intends to reimburse the residual receipts reserve via ACH in the amount of $8,409. Views of Responsible Officials Management concurs that the Project withdrew from the residual receipts reserve in the amount of $8,409 without HUD approval. Management further notes that they have re-trained staff, reaffirmed the review and approval process to ensure required residual receipt reserve withdrawals are completed with proper HUD authorization. Management has made changes to internal controls to prevent and detect unauthorized withdrawals from reserves. Management will complete the reimbursement to the residual receipts reserve subsequent to year-end.
Department of Housing and Urban Development Finding No. 2024-001; Section 811 Capital Advance - Supportive Housing for Persons with Disabilities Criteria Any withdrawal from the residual receipts reserve requires HUD approval. Condition During the year ended June 30, 2024, management withdrew $8,409 from the residual receipts reserve without HUD approval. Cause The amount was withdrawn from the residual receipts reserve in error. Effect or Potential Effect The withdrawal of $8,409 is an unauthorized withdrawal from the residual receipts reserve. Questioned Costs Questioned costs totaled $8,409, comprising the withdrawal from the residual receipts reserve. Context In connection with the procedures applied to test compliance with reserve requirements, there was one instance where management withdrew $8,409 from the residual receipts reserve without HUD approval. Identification as a Repeat Finding Not a repeat finding. Recommendation Management should immediately deposit $8,409 into the residual receipts reserve. Auditor Noncompliance Code: C - Unauthorized withdrawal from residual receipts accounts. Finding Resolution Status: Unresolved. The Project intends to reimburse the residual receipts reserve via ACH in the amount of $8,409. Views of Responsible Officials Management concurs that the Project withdrew from the residual receipts reserve in the amount of $8,409 without HUD approval. Management further notes that they have re-trained staff, reaffirmed the review and approval process to ensure required residual receipt reserve withdrawals are completed with proper HUD authorization. Management has made changes to internal controls to prevent and detect unauthorized withdrawals from reserves. Management will complete the reimbursement to the residual receipts reserve subsequent to year-end.