FAC Explorer

Audit 355860

FY End
2024-12-31
Total Expended
$1.65M
Findings
2
Programs
1
Organization: Winslow Gardens (RI)
Year: 2024 Accepted: 2025-05-08
Auditor: Aafcpas INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
559919 2024-001 Significant Deficiency - C
1136361 2024-001 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
14.164 Operating Assisting for Troubled Multifamily Housing Projects $1.65M Yes 1

Contacts

Name Title Type
DKWQJ4D7GFX9 Joseph Durand Auditee
4014384456 Courtney McFarland Auditor
No contacts on file

Notes to SEFA

Title: Loans Outstanding Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the Federal assistance activity of the Organization and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. De Minimis Rate Used: N Rate Explanation: The Agency has elected not to use the 10% de minimis cost rate for its Federal programs. The HUD Operating Assisting for Troubled Multifamily Housing Projects expenditures listed above consists of an outstanding capital advance of $1,654,375 as of December 31, 2024.

Finding Details

Finding 2024-001
Significant Deficiency: Finding 2024-001 Criteria: The U.S. Department of Housing and Urban Development (HUD) required that the Organization transfer surplus cash of $720,497 to a residual receipts account within 90 days after December 31, 2023. Condition: The Organization did not establish a residual receipts account and deposit the required funds within 90 days after December 31, 2023. Cause: The delay in completing the transfer was due to the Organization being in communications with HUD in consideration of refinancing their debt and, therefore, no longer having the residual receipt requirement. Effect: The failure to complete the transfer within the specified timeframe could result in noncompliance with regulatory requirements and potential financial penalties. Additionally, it may impact the Organization’s financial reporting accuracy and reliability. Recommendation: It is recommended that the Organization reviews and strengthens its internal controls and procedures to ensure timely transfers to the residual receipts account. This may include implementing additional oversight to ensure compliance with the established timelines. Management Response: Management is in agreement with this finding. Winslow Gardens is actively working with HUD to determine next steps for the residual receipts and a solution to the outstanding Flex Subsidy Loan.
Finding 2024-001
Significant Deficiency: Finding 2024-001 Criteria: The U.S. Department of Housing and Urban Development (HUD) required that the Organization transfer surplus cash of $720,497 to a residual receipts account within 90 days after December 31, 2023. Condition: The Organization did not establish a residual receipts account and deposit the required funds within 90 days after December 31, 2023. Cause: The delay in completing the transfer was due to the Organization being in communications with HUD in consideration of refinancing their debt and, therefore, no longer having the residual receipt requirement. Effect: The failure to complete the transfer within the specified timeframe could result in noncompliance with regulatory requirements and potential financial penalties. Additionally, it may impact the Organization’s financial reporting accuracy and reliability. Recommendation: It is recommended that the Organization reviews and strengthens its internal controls and procedures to ensure timely transfers to the residual receipts account. This may include implementing additional oversight to ensure compliance with the established timelines. Management Response: Management is in agreement with this finding. Winslow Gardens is actively working with HUD to determine next steps for the residual receipts and a solution to the outstanding Flex Subsidy Loan.