FAC Explorer

Audit 341811

FY End
2024-10-31
Total Expended
$1.95M
Findings
2
Programs
2
Organization: Housing for Rockdale Elders, Inc. (MA)
Year: 2024 Accepted: 2025-02-10
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
522588 2024-001 Significant Deficiency - N
1099030 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.60M Yes 1
14.182 Section 8 Housing Assistance Payments $352,334 - 0

Contacts

Name Title Type
SRHNAK9LBXM1 Alyssa Glennon Auditee
9786306634 James Matzdorff 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, as applicable, either the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations" 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: Y Rate Explanation: The Corporation has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of Housing for Rockdale Elders, Inc. (the "Corporation") under programs of the federal government for the year ended October 31, 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 Housing for Rockdale Elders, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Housing for Rockdale Elders, Inc. For the year ended October 31, 2024, no awards were passed through to subrecipients.
Title: U.S. Department of Housing and Urban Development loan program 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 contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations" 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: Y Rate Explanation: The Corporation has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The federal loan program listed below is administered directly by PNC Bank, National Association and balances and transactions relating to the program are included in the Corporation's basic financial statements. The loan outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Housing for Rockdale Elders, Inc. received no additional loans during the year. The balance of the loan outstanding at October 31, 2024 consists of: Federal Assistance Listing Outstanding Balance Number Program Name October 31, 2024 14.155 Section 223 HUD-Insured Mortgage $ 1,540,595

Finding Details

Finding 2024-001
Finding 2024-001 - Special Tests and Provisions - Significant Deficiency Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 223 HUD-Insured Mortgage Assistance Listing Number: 14.155 Federal Award Identification Number and Year: Not available Name of Pass-through Entity (if applicable): Not applicable Criteria: In accordance with §891.400(e), Responsibilities of owner, the owner must make required deposits to the residual receipts account. Additionally, in accordance with §891.600(e), Responsibilities of borrower, the borrower must make required deposits to the residual receipts account. Condition: During the year ended October 31, 2024, management was required to deposit $6,494 in the residual receipts account within 90 days of fiscal year end, as required by HUD. During the year ended October 31, 2024, management made deposits of $4,791 within 90 days of fiscal year end resulting in an underfunding of the residual receipts account of $1,703. Cause: The Corporation did not have internal controls in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect: The Corporation is not in compliance with the requirements of the regulatory agreement or Uniform Guidance. Questioned Costs: $1,703 Context: During the year ended October 31, 2024, management made deposits in the amount of $4,791. However, management was required to deposit $6,494 in the residual receipts account. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Corporation establish internal controls over its residual receipts compliance requirements to ensure that the Corporation is in compliance with Uniform Guidance and its regulatory agreement.
Finding 2024-001
Finding 2024-001 - Special Tests and Provisions - Significant Deficiency Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 223 HUD-Insured Mortgage Assistance Listing Number: 14.155 Federal Award Identification Number and Year: Not available Name of Pass-through Entity (if applicable): Not applicable Criteria: In accordance with §891.400(e), Responsibilities of owner, the owner must make required deposits to the residual receipts account. Additionally, in accordance with §891.600(e), Responsibilities of borrower, the borrower must make required deposits to the residual receipts account. Condition: During the year ended October 31, 2024, management was required to deposit $6,494 in the residual receipts account within 90 days of fiscal year end, as required by HUD. During the year ended October 31, 2024, management made deposits of $4,791 within 90 days of fiscal year end resulting in an underfunding of the residual receipts account of $1,703. Cause: The Corporation did not have internal controls in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect: The Corporation is not in compliance with the requirements of the regulatory agreement or Uniform Guidance. Questioned Costs: $1,703 Context: During the year ended October 31, 2024, management made deposits in the amount of $4,791. However, management was required to deposit $6,494 in the residual receipts account. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Corporation establish internal controls over its residual receipts compliance requirements to ensure that the Corporation is in compliance with Uniform Guidance and its regulatory agreement.