FAC Explorer

Audit 357549

FY End
2024-12-31
Total Expended
$1.91M
Findings
2
Programs
2
Organization: Lee Elderly Housing Corporation (MA)
Year: 2024 Accepted: 2025-05-29
Auditor: Cbiz CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
561899 2024-003 Significant Deficiency - N
1138341 2024-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.48M Yes 1
14.195 Project-Based Rental Assistance (pbra) $431,493 - 0

Contacts

Name Title Type
PMBQQGBDUPA1 Allison Maxfield Auditee
4134991630 Erica Olobri Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Lee Elderly Housing Corporation, under programs of the federal government for the year ended December 31, 2024. The information in the schedule is presented in accordance with the requirements of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Lee Elderly Housing Corporation, it is not intended to and does not present the financial position, changes in net deficit or cash flows of Lee Elderly Housing Corporation. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. NOTE 3 - INDIRECT COST RATE The Lee Elderly Housing Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 4 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN GUARANTEE PROGRAM Lee Elderly Housing Corporation has received a U.S. Department of Housing and Urban Development loan guarantee under Section 207 of the National Housing Act. Lee Elderly Housing Corporation received no additional loans or loan guarantees during the year. The balance of the loan outstanding at December 31, 2024 amounted to $1,437,129. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Lee Elderly Housing Corporation, under programs of the federal government for the year ended December 31, 2024. The information in the schedule is presented in accordance with the requirements of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Lee Elderly Housing Corporation, it is not intended to and does not present the financial position, changes in net deficit or cash flows of Lee Elderly Housing Corporation.
Title: Summary of Significant Accounting Policies Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Lee Elderly Housing Corporation, under programs of the federal government for the year ended December 31, 2024. The information in the schedule is presented in accordance with the requirements of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Lee Elderly Housing Corporation, it is not intended to and does not present the financial position, changes in net deficit or cash flows of Lee Elderly Housing Corporation. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. NOTE 3 - INDIRECT COST RATE The Lee Elderly Housing Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 4 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN GUARANTEE PROGRAM Lee Elderly Housing Corporation has received a U.S. Department of Housing and Urban Development loan guarantee under Section 207 of the National Housing Act. Lee Elderly Housing Corporation received no additional loans or loan guarantees during the year. The balance of the loan outstanding at December 31, 2024 amounted to $1,437,129. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned.
Title: Indirect Cost Rate Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Lee Elderly Housing Corporation, under programs of the federal government for the year ended December 31, 2024. The information in the schedule is presented in accordance with the requirements of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Lee Elderly Housing Corporation, it is not intended to and does not present the financial position, changes in net deficit or cash flows of Lee Elderly Housing Corporation. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. NOTE 3 - INDIRECT COST RATE The Lee Elderly Housing Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 4 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN GUARANTEE PROGRAM Lee Elderly Housing Corporation has received a U.S. Department of Housing and Urban Development loan guarantee under Section 207 of the National Housing Act. Lee Elderly Housing Corporation received no additional loans or loan guarantees during the year. The balance of the loan outstanding at December 31, 2024 amounted to $1,437,129. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate The Lee Elderly Housing Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: U.S Department of Housing and Urban Development Loan Guarantee Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Lee Elderly Housing Corporation, under programs of the federal government for the year ended December 31, 2024. The information in the schedule is presented in accordance with the requirements of the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Lee Elderly Housing Corporation, it is not intended to and does not present the financial position, changes in net deficit or cash flows of Lee Elderly Housing Corporation. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. NOTE 3 - INDIRECT COST RATE The Lee Elderly Housing Corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 4 - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN GUARANTEE PROGRAM Lee Elderly Housing Corporation has received a U.S. Department of Housing and Urban Development loan guarantee under Section 207 of the National Housing Act. Lee Elderly Housing Corporation received no additional loans or loan guarantees during the year. The balance of the loan outstanding at December 31, 2024 amounted to $1,437,129. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate Lee Elderly Housing Corporation has received a U.S. Department of Housing and Urban Development loan guarantee under Section 207 of the National Housing Act. Lee Elderly Housing Corporation received no additional loans or loan guarantees during the year. The balance of the loan outstanding at December 31, 2024 amounted to $1,437,129.

Finding Details

Finding 2024-003
Criteria Under the Uniform Guidance Special Test requirements, the Project is required to maintain sufficient internal controls to ensure compliance with special tests. Condition During our audit procedures we noted that there are weaknesses in internal controls over replacement reserve and residual receipts accounts. There is no documentation of these accounts being reviewed by management. Cause of Condition The Project didn’t have adequate controls in place to ensure that replacement reserve and residual receipts required deposits are made in accordance with the Uniform Guidance requirements. Effect If the control process is not documented, it is not possible to determine if the controls are designed and applied consistently. The inadequate documentation of the components of internal controls could result in an inability to appropriately monitor the effectiveness of the internal controls. Questioned Costs: None Identification as a Repeat Finding, if applicable – No Recommendation We recommend that management implement a process to document formal review and approvals of replacement reserve and residual receipts accounts. Management’s Response Please see Project’s Corrective Action Plan included in this reporting package.
Finding 2024-003
Criteria Under the Uniform Guidance Special Test requirements, the Project is required to maintain sufficient internal controls to ensure compliance with special tests. Condition During our audit procedures we noted that there are weaknesses in internal controls over replacement reserve and residual receipts accounts. There is no documentation of these accounts being reviewed by management. Cause of Condition The Project didn’t have adequate controls in place to ensure that replacement reserve and residual receipts required deposits are made in accordance with the Uniform Guidance requirements. Effect If the control process is not documented, it is not possible to determine if the controls are designed and applied consistently. The inadequate documentation of the components of internal controls could result in an inability to appropriately monitor the effectiveness of the internal controls. Questioned Costs: None Identification as a Repeat Finding, if applicable – No Recommendation We recommend that management implement a process to document formal review and approvals of replacement reserve and residual receipts accounts. Management’s Response Please see Project’s Corrective Action Plan included in this reporting package.