FAC Explorer

Audit 356732

FY End
2024-12-31
Total Expended
$39.00M
Findings
4
Programs
2
Organization: Union Congregational Church Homes, Inc. (MA)
Year: 2024 Accepted: 2025-05-20
Auditor: Kahn Litwin Renza & CO LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
561092 2024-001 - - B
561093 2024-001 - - B
1137534 2024-001 - - B
1137535 2024-001 - - B

Programs

ALN Program Spent Major Findings
14.135 Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate $34.77M Yes 1
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $4.23M Yes 1

Contacts

Name Title Type
XX2NFQX8F8G7 Ronald Gates Auditee
7813352667 Elise Caputi 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 OMB Circular A-122, Cost Principles for Non-Profit Organizations, and the cost principles contained in the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Organization does not have a federally approved negotiated indirect cost rate agreement and, therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Union Congregational Church Homes, Inc., HUD Project No. 023- 35372, 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 Union Congregational Church Homes, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Union Congregational Church Homes, Inc.
Title: 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 the cost principles contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations, and the cost principles contained in the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Organization does not have a federally approved negotiated indirect cost rate agreement and, therefore, is subject to the 10-percent de minimis indirect cost rate 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 OMB Circular A-122, Cost Principles for Non-Profit Organizations, and the cost principles contained in the Uniform Guidance.
Title: Indirect Cost Rate 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 OMB Circular A-122, Cost Principles for Non-Profit Organizations, and the cost principles contained in the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Organization does not have a federally approved negotiated indirect cost rate agreement and, therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance. The Organization does not have a federally approved negotiated indirect cost rate agreement and, therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance.
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 OMB Circular A-122, Cost Principles for Non-Profit Organizations, and the cost principles contained in the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Organization does not have a federally approved negotiated indirect cost rate agreement and, therefore, is subject to the 10-percent de minimis indirect cost rate under the Uniform Guidance. Union Congregational Church Homes, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 221(d)(4) 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. Union Congregational Church Homes, Inc. received no additional loans during the year. The balance of the loan outstanding at December 31, 2024 consists of: See the Notes to the SEFA for chart/table.

Finding Details

Finding 2024-001
Findings and Questioned Costs - Major Federal Award Program Audit Finding No. 2024-001 Major Federal Programs ALN 14.135 Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate (Section 221(d)(4)) Program, and ALN 14.856 Lower Income Housing Assistance Program - Section 8 Moderate Rehabilitation. Criteria The regulations under which the Organization operates prohibit unauthorized use of Project assets. Statement of Condition During 2024, the Organization made gifts of $118,186 to an affiliated real estate entity from its operating funds and also paid an expense of $14,681 of this affiliated real estate entity from its property insurance escrow deposits account. These transactions represent an unauthorized use of Project assets. Cause The Organization made gifts of $118,186 to an affiliated real estate entity from its operating funds. The Organization also paid an expense of $14,681 of this affiliated real estate entity from its property insurance escrow deposits account. Effect or Potential Effect The unauthorized use of Project assets results in the loss of those assets for use in Project operations. Questioned Costs $132,867 Recommendations The Organization should transfer $118,186 from its entity cash account to the Project’s operating account and $14,681 from its entity cash account to the Project’s property insurance escrow deposits account. Reporting Views of Responsible Officials On March 11, 2025, the Organization transferred $118,186 from its entity cash account into the Project’s operating account. On March 27, 2025, the Organization transferred $14,681 from its entity cash account to the Project’s property insurance escrow deposits account.
Finding 2024-001
Findings and Questioned Costs - Major Federal Award Program Audit Finding No. 2024-001 Major Federal Programs ALN 14.135 Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate (Section 221(d)(4)) Program, and ALN 14.856 Lower Income Housing Assistance Program - Section 8 Moderate Rehabilitation. Criteria The regulations under which the Organization operates prohibit unauthorized use of Project assets. Statement of Condition During 2024, the Organization made gifts of $118,186 to an affiliated real estate entity from its operating funds and also paid an expense of $14,681 of this affiliated real estate entity from its property insurance escrow deposits account. These transactions represent an unauthorized use of Project assets. Cause The Organization made gifts of $118,186 to an affiliated real estate entity from its operating funds. The Organization also paid an expense of $14,681 of this affiliated real estate entity from its property insurance escrow deposits account. Effect or Potential Effect The unauthorized use of Project assets results in the loss of those assets for use in Project operations. Questioned Costs $132,867 Recommendations The Organization should transfer $118,186 from its entity cash account to the Project’s operating account and $14,681 from its entity cash account to the Project’s property insurance escrow deposits account. Reporting Views of Responsible Officials On March 11, 2025, the Organization transferred $118,186 from its entity cash account into the Project’s operating account. On March 27, 2025, the Organization transferred $14,681 from its entity cash account to the Project’s property insurance escrow deposits account.
Finding 2024-001
Findings and Questioned Costs - Major Federal Award Program Audit Finding No. 2024-001 Major Federal Programs ALN 14.135 Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate (Section 221(d)(4)) Program, and ALN 14.856 Lower Income Housing Assistance Program - Section 8 Moderate Rehabilitation. Criteria The regulations under which the Organization operates prohibit unauthorized use of Project assets. Statement of Condition During 2024, the Organization made gifts of $118,186 to an affiliated real estate entity from its operating funds and also paid an expense of $14,681 of this affiliated real estate entity from its property insurance escrow deposits account. These transactions represent an unauthorized use of Project assets. Cause The Organization made gifts of $118,186 to an affiliated real estate entity from its operating funds. The Organization also paid an expense of $14,681 of this affiliated real estate entity from its property insurance escrow deposits account. Effect or Potential Effect The unauthorized use of Project assets results in the loss of those assets for use in Project operations. Questioned Costs $132,867 Recommendations The Organization should transfer $118,186 from its entity cash account to the Project’s operating account and $14,681 from its entity cash account to the Project’s property insurance escrow deposits account. Reporting Views of Responsible Officials On March 11, 2025, the Organization transferred $118,186 from its entity cash account into the Project’s operating account. On March 27, 2025, the Organization transferred $14,681 from its entity cash account to the Project’s property insurance escrow deposits account.
Finding 2024-001
Findings and Questioned Costs - Major Federal Award Program Audit Finding No. 2024-001 Major Federal Programs ALN 14.135 Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate (Section 221(d)(4)) Program, and ALN 14.856 Lower Income Housing Assistance Program - Section 8 Moderate Rehabilitation. Criteria The regulations under which the Organization operates prohibit unauthorized use of Project assets. Statement of Condition During 2024, the Organization made gifts of $118,186 to an affiliated real estate entity from its operating funds and also paid an expense of $14,681 of this affiliated real estate entity from its property insurance escrow deposits account. These transactions represent an unauthorized use of Project assets. Cause The Organization made gifts of $118,186 to an affiliated real estate entity from its operating funds. The Organization also paid an expense of $14,681 of this affiliated real estate entity from its property insurance escrow deposits account. Effect or Potential Effect The unauthorized use of Project assets results in the loss of those assets for use in Project operations. Questioned Costs $132,867 Recommendations The Organization should transfer $118,186 from its entity cash account to the Project’s operating account and $14,681 from its entity cash account to the Project’s property insurance escrow deposits account. Reporting Views of Responsible Officials On March 11, 2025, the Organization transferred $118,186 from its entity cash account into the Project’s operating account. On March 27, 2025, the Organization transferred $14,681 from its entity cash account to the Project’s property insurance escrow deposits account.