Audit 346099

FY End
2024-06-30
Total Expended
$9.18M
Findings
4
Programs
1
Year: 2024 Accepted: 2025-03-14
Auditor: Cohnreznick LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
526997 2024-001 Significant Deficiency - B
526998 2024-001 Significant Deficiency - B
1103439 2024-001 Significant Deficiency - B
1103440 2024-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $991,062 Yes 1

Contacts

Name Title Type
CRFNEGNFSRM5 Matthew Locurto Auditee
2122735257 Mike Bisson Auditor
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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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Positively Third Street HDFC 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 ("Schedule") includes the federal awards activity of Positively Third Street HDFC, HUD Project No. 012-EE287, 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 Positively Third Street HDFC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Positively Third Street HDFC. For the year ended June 30, 2024, no awards were passed through to subrecipients.
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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Positively Third Street HDFC 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 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Positively Third Street HDFC has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Positively Third Street HDFC 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 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Positively Third Street HDFC has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Positively Third Street HDFC has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Positively Third Street HDFC received no additional loans during the year. The balance of the loan outstanding at June 30, 2024 consists of: Assistance Listing Number Program Name Outstanding Balance June 30, 2024 14.157 Supportive Housing for the Elderly (Section 202 Direct Loan) $ 8,186,700

Finding Details

Federal Award Findings and Questioned Costs Finding No. 2024-1; Section 202, Assistance Listing 14.157 – Significant Deficiency Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name and Assistance Listing Number: Supportive Housing for the Elderly Section 202 Direct Loan and Project Rental Assistance Contract; 14.157 Federal Award Identification Number and Year: 012-EE287 2024 Condition During the year ended June 30, 2024, management did not make the required residual receipts reserve deposit in the amount of $93,641 within 90 days of year end, as required by HUD. The residual receipts amount as of February 26, 2025, the Organization has not yet deposited the amount into the Residual Receipts reserve. Criteria Residual receipts reserve deposits should be made within 90 days of year end. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Organization is not in compliance with the requirements of the regulatory agreement. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor's Noncompliance Code: B - Failure to make required residual receipts deposits Reporting Views of Responsible Officials The $93,461 of residual receipts noted in the 2023 audit and cited as a finding in the 2024 report was deposited into the residual receipt account on January 10, 2025. Our new Controller has established procedures to ensure that that the proceeds stemming from the retroactive budgetbased rent increase are used for their intended purpose prior to the end of the fiscal year that they are received. Status In process
Federal Award Findings and Questioned Costs Finding No. 2024-1; Section 202, Assistance Listing 14.157 – Significant Deficiency Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name and Assistance Listing Number: Supportive Housing for the Elderly Section 202 Direct Loan and Project Rental Assistance Contract; 14.157 Federal Award Identification Number and Year: 012-EE287 2024 Condition During the year ended June 30, 2024, management did not make the required residual receipts reserve deposit in the amount of $93,641 within 90 days of year end, as required by HUD. The residual receipts amount as of February 26, 2025, the Organization has not yet deposited the amount into the Residual Receipts reserve. Criteria Residual receipts reserve deposits should be made within 90 days of year end. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Organization is not in compliance with the requirements of the regulatory agreement. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor's Noncompliance Code: B - Failure to make required residual receipts deposits Reporting Views of Responsible Officials The $93,461 of residual receipts noted in the 2023 audit and cited as a finding in the 2024 report was deposited into the residual receipt account on January 10, 2025. Our new Controller has established procedures to ensure that that the proceeds stemming from the retroactive budgetbased rent increase are used for their intended purpose prior to the end of the fiscal year that they are received. Status In process
Federal Award Findings and Questioned Costs Finding No. 2024-1; Section 202, Assistance Listing 14.157 – Significant Deficiency Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name and Assistance Listing Number: Supportive Housing for the Elderly Section 202 Direct Loan and Project Rental Assistance Contract; 14.157 Federal Award Identification Number and Year: 012-EE287 2024 Condition During the year ended June 30, 2024, management did not make the required residual receipts reserve deposit in the amount of $93,641 within 90 days of year end, as required by HUD. The residual receipts amount as of February 26, 2025, the Organization has not yet deposited the amount into the Residual Receipts reserve. Criteria Residual receipts reserve deposits should be made within 90 days of year end. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Organization is not in compliance with the requirements of the regulatory agreement. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor's Noncompliance Code: B - Failure to make required residual receipts deposits Reporting Views of Responsible Officials The $93,461 of residual receipts noted in the 2023 audit and cited as a finding in the 2024 report was deposited into the residual receipt account on January 10, 2025. Our new Controller has established procedures to ensure that that the proceeds stemming from the retroactive budgetbased rent increase are used for their intended purpose prior to the end of the fiscal year that they are received. Status In process
Federal Award Findings and Questioned Costs Finding No. 2024-1; Section 202, Assistance Listing 14.157 – Significant Deficiency Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name and Assistance Listing Number: Supportive Housing for the Elderly Section 202 Direct Loan and Project Rental Assistance Contract; 14.157 Federal Award Identification Number and Year: 012-EE287 2024 Condition During the year ended June 30, 2024, management did not make the required residual receipts reserve deposit in the amount of $93,641 within 90 days of year end, as required by HUD. The residual receipts amount as of February 26, 2025, the Organization has not yet deposited the amount into the Residual Receipts reserve. Criteria Residual receipts reserve deposits should be made within 90 days of year end. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Organization is not in compliance with the requirements of the regulatory agreement. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor's Noncompliance Code: B - Failure to make required residual receipts deposits Reporting Views of Responsible Officials The $93,461 of residual receipts noted in the 2023 audit and cited as a finding in the 2024 report was deposited into the residual receipt account on January 10, 2025. Our new Controller has established procedures to ensure that that the proceeds stemming from the retroactive budgetbased rent increase are used for their intended purpose prior to the end of the fiscal year that they are received. Status In process