FAC Explorer

Audit 355472

FY End
2024-12-31
Total Expended
$6.75M
Findings
4
Programs
2
Organization: Winter Grove, Inc. (CT)
Year: 2024 Accepted: 2025-05-05
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
559256 2024-001 Significant Deficiency Yes E
559257 2024-001 Significant Deficiency Yes E
1135698 2024-001 Significant Deficiency Yes E
1135699 2024-001 Significant Deficiency Yes E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $6.49M Yes 1
14.157 Supportive Housing for the Elderly - Prac $260,158 Yes 1

Contacts

Name Title Type
HNJPMB5EPGK1 Tom Cruess Auditee
2035624514 Kristen Brown 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 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: Winter Grove, 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 Winter Grove, Inc. HUD Project No.: 017-EE118, under programs of the federal government for the year ended December 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 Winter Grove, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Winter Grove, Inc. For the year ended December 31, 2024, no funds 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 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: Winter Grove, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Winter Grove, Inc. 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. Winter Grove, Inc. received no additional loans during the year. The balance of the loan outstanding at December 31, 2024 consists of: Assistance Listing Number 14.157 Program name Supportive Housing for the Elderly (Section 202) Outstanding balance at December 31, 2024 $ 6,491,000

Finding Details

Finding 2024-001
Finding No. 2024-001 Department of Housing and Urban Development Federal Assistance Listing Number 14.157 Supportive Housing for the Elderly (Section 202) Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition The Project did not perform a review of the Enterprise Income Verification ("EIV") system within 90 days of the tenant moving into the Project. Cause Policies and procedures, which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines, were not followed. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Context A noncompliance was found in the one move in that was tested. Identification as a Repeat Finding This is a repeat finding of 2023-002. Recommendation Management should monitor compliance with established procedures to ensure the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Auditor Noncompliance Code: Z - Other Finding Resolution Status: In process Views of Responsible Officials and Planned Corrective Actions There have been multiple users (Property Managers) assigned to the Enterprise Income Verification System ("EIV") to prevent a repeat of this occurrence going forward.
Finding 2024-001
Finding No. 2024-001 Department of Housing and Urban Development Federal Assistance Listing Number 14.157 Supportive Housing for the Elderly (Section 202) Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition The Project did not perform a review of the Enterprise Income Verification ("EIV") system within 90 days of the tenant moving into the Project. Cause Policies and procedures, which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines, were not followed. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Context A noncompliance was found in the one move in that was tested. Identification as a Repeat Finding This is a repeat finding of 2023-002. Recommendation Management should monitor compliance with established procedures to ensure the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Auditor Noncompliance Code: Z - Other Finding Resolution Status: In process Views of Responsible Officials and Planned Corrective Actions There have been multiple users (Property Managers) assigned to the Enterprise Income Verification System ("EIV") to prevent a repeat of this occurrence going forward.
Finding 2024-001
Finding No. 2024-001 Department of Housing and Urban Development Federal Assistance Listing Number 14.157 Supportive Housing for the Elderly (Section 202) Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition The Project did not perform a review of the Enterprise Income Verification ("EIV") system within 90 days of the tenant moving into the Project. Cause Policies and procedures, which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines, were not followed. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Context A noncompliance was found in the one move in that was tested. Identification as a Repeat Finding This is a repeat finding of 2023-002. Recommendation Management should monitor compliance with established procedures to ensure the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Auditor Noncompliance Code: Z - Other Finding Resolution Status: In process Views of Responsible Officials and Planned Corrective Actions There have been multiple users (Property Managers) assigned to the Enterprise Income Verification System ("EIV") to prevent a repeat of this occurrence going forward.
Finding 2024-001
Finding No. 2024-001 Department of Housing and Urban Development Federal Assistance Listing Number 14.157 Supportive Housing for the Elderly (Section 202) Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition The Project did not perform a review of the Enterprise Income Verification ("EIV") system within 90 days of the tenant moving into the Project. Cause Policies and procedures, which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines, were not followed. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Context A noncompliance was found in the one move in that was tested. Identification as a Repeat Finding This is a repeat finding of 2023-002. Recommendation Management should monitor compliance with established procedures to ensure the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Auditor Noncompliance Code: Z - Other Finding Resolution Status: In process Views of Responsible Officials and Planned Corrective Actions There have been multiple users (Property Managers) assigned to the Enterprise Income Verification System ("EIV") to prevent a repeat of this occurrence going forward.