Audit 348843

FY End

2024-12-31

Total Expended

$4.57M

Findings

2

Programs

1

Organization: Sacred Heart Village II Inc. (DE)

Year: 2024 Accepted: 2025-03-27

Auditor: Belfint Lyons & Shuman P A

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
537560	2024-001	-	Yes	N
1114002	2024-001	-	Yes	N

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$348,944	Yes	0

Contacts

Name	Title	Type
PCALQJNYL745	Karen Smith	Auditee
3025161068	Jonathan Moll	Auditor
No contacts on file

Notes to SEFA

Title: Notes to Schedule of Expenditures of Federal Awards Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activities in the federal assistance programs of the Organization. All financial awards received directly or indirectly from federal agencies are included on the schedule. The information in this schedule is presented in accordance with the requirements of OMB Compliance Supplement. The accompanying schedule of expenditures of federal awards has been prepared on the accrual basis of accounting. Management believes all federal awards considered necessary for a fair presentation in accordance with Government Auditing Standards have been included. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards presents the activities in the federal assistance programs of the Organization. All financial awards received directly or indirectly from federal agencies are included on the schedule. The information in this schedule is presented in accordance with the requirements of OMB Compliance Supplement. The accompanying schedule of expenditures of federal awards has been prepared on the accrual basis of accounting. Management believes all federal awards considered necessary for a fair presentation in accordance with Government Auditing Standards have been included. The outstanding balance as of December 31, 2024, on the capital advance was $4,219,200. The Organization has elected not to use the 10% de minimis indirect cost rate. Amounts reported in the accompanying schedule agree with amounts reported in the Organization’s financial statements.

Finding Details

Finding 2024-001

Condition: The Organization funded its reserve for replacement account in the amount of $36,000 during the year ended December 31, 2024. This amount meets the annual funding requirement and reduces the cumulative underfunded amount. However, the reserve for replacement account is underfunded by $65,686 as of December 31, 2024, due to the cumulative effect of underfunding the reserve in previous years. Criteria: As required by the Regulatory Agreement with HUD, the Organization must fund a reserve for replacement account in the amount of $30,005 on an annual basis. Cause: The Organization did not possess adequate cash flow to meet the requirement in previous years. Effect: The reserve for replacement account was underfunded during the years ended December 31, 2017 through 2021. During those years, the Organization was not in compliance with the reserve for replacement requirement as stated in the Regulatory Agreement. As of December 31, 2024, the reserve for replacement account was underfunded by a total of $65,686. Recommendation: As cash flow allows, we recommend that the Organization continue making additional payments to the reserve for replacement account to correct the cumulative underfunded amount.

Finding 2024-001

Condition: The Organization funded its reserve for replacement account in the amount of $36,000 during the year ended December 31, 2024. This amount meets the annual funding requirement and reduces the cumulative underfunded amount. However, the reserve for replacement account is underfunded by $65,686 as of December 31, 2024, due to the cumulative effect of underfunding the reserve in previous years. Criteria: As required by the Regulatory Agreement with HUD, the Organization must fund a reserve for replacement account in the amount of $30,005 on an annual basis. Cause: The Organization did not possess adequate cash flow to meet the requirement in previous years. Effect: The reserve for replacement account was underfunded during the years ended December 31, 2017 through 2021. During those years, the Organization was not in compliance with the reserve for replacement requirement as stated in the Regulatory Agreement. As of December 31, 2024, the reserve for replacement account was underfunded by a total of $65,686. Recommendation: As cash flow allows, we recommend that the Organization continue making additional payments to the reserve for replacement account to correct the cumulative underfunded amount.