Audit 350639

FY End
2024-06-30
Total Expended
$7.30M
Findings
2
Programs
1
Organization: Saugatucket Spring INC (RI)
Year: 2024 Accepted: 2025-03-31

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
541036 2024-001 Significant Deficiency - C
1117478 2024-001 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $276,560 Yes 1

Contacts

Name Title Type
MPTMN5HJ77L8 Frank Shea Auditee
4019412900 Victoria Sylvia Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Saugatucket Springs, Inc. 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 Saugatucket Springs, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Saugatucket Springs, Inc. 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. De Minimis Rate Used: Y Rate Explanation: Saugatucket Springs, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Supportive Housing for the Elderly(14.157)- Balances outstanding at the end of the audit period were $7,028,200
Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Saugatucket Springs, Inc. 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 Saugatucket Springs, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Saugatucket Springs, Inc. 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. De Minimis Rate Used: Y Rate Explanation: Saugatucket Springs, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Saugatucket Springs, Inc. 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 Saugatucket Springs, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Saugatucket Springs, Inc.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Saugatucket Springs, Inc. 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 Saugatucket Springs, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Saugatucket Springs, Inc. 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. De Minimis Rate Used: Y Rate Explanation: Saugatucket Springs, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 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.
Title: INDIRECT COST RATE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Saugatucket Springs, Inc. 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 Saugatucket Springs, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Saugatucket Springs, Inc. 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. De Minimis Rate Used: Y Rate Explanation: Saugatucket Springs, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Saugatucket Springs, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001: Supportive Elderly Housing Section 202 Condition: The tenant security deposit cash was underfunded as of June 30, 2024 Criteria: Security deposits for each tenant are required to be maintained in a separate bank account, apart from those maintained for operations and development. Cause: The Corporation does not have internal controls in place to ensure that tenant security deposits are transferred on a timely basis from the operating bank account. Effect: The Corporation is no longer in compliance with the rules and regulations regarding tenant security deposits are required by HUD. Recommendation: The Corporation should design and implement internal controls to ensure that all security deposits are transferred in the required time period. Management should also conduct a monthly inspection of the security deposit listing. Views of Responsible Officials and Planned Corrective Actions: Management is in agreement with the auditor’s findings. Management has hired additional personnel to review all matters related to tenant compliance.
Finding 2024-001: Supportive Elderly Housing Section 202 Condition: The tenant security deposit cash was underfunded as of June 30, 2024 Criteria: Security deposits for each tenant are required to be maintained in a separate bank account, apart from those maintained for operations and development. Cause: The Corporation does not have internal controls in place to ensure that tenant security deposits are transferred on a timely basis from the operating bank account. Effect: The Corporation is no longer in compliance with the rules and regulations regarding tenant security deposits are required by HUD. Recommendation: The Corporation should design and implement internal controls to ensure that all security deposits are transferred in the required time period. Management should also conduct a monthly inspection of the security deposit listing. Views of Responsible Officials and Planned Corrective Actions: Management is in agreement with the auditor’s findings. Management has hired additional personnel to review all matters related to tenant compliance.