FAC Explorer

Audit 3623

FY End
2022-12-31
Total Expended
$904,943
Findings
4
Programs
4
Organization: Eastern Connecticut Housing Organization (CT)
Year: 2022 Accepted: 2023-11-17
Auditor: Hoyt Filippetti & Malaghan LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
2075 2021-001 - Yes P
2076 2022-001 - - P
578517 2021-001 - Yes P
578518 2022-001 - - P

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $748,436 Yes 1
14.195 Section 8 Housing Assistance Payments Program $101,523 - 0
10.415 Rural Rental Housing Loans $45,406 Yes 1
10.427 Rural Rental Assistance Payments $9,578 - 0

Contacts

Name Title Type
EX4KMK5AACN4 Matthew Scibek Auditee
8605282885 Paul Filippetti Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – ACCOUNTING BASIS Accounting Policies: The accounting policies of the Eastern Connecticut Housing Organization, Inc. – Hop River Homes conform to accounting principles generally accepted in the United States of America as applicable to nonprofit organizations. De Minimis Rate Used: N Rate Explanation: Eastern Connecticut Housing Organization, Inc. – Hop River Homes has not elected to use the 10% de Minimis indirect cost rate. BASIC FINANCIAL STATEMENTS
Title: NOTE A – ACCOUNTING BASIS Accounting Policies: The accounting policies of the Eastern Connecticut Housing Organization, Inc. – Hop River Homes conform to accounting principles generally accepted in the United States of America as applicable to nonprofit organizations. De Minimis Rate Used: N Rate Explanation: Eastern Connecticut Housing Organization, Inc. – Hop River Homes has not elected to use the 10% de Minimis indirect cost rate. The accounting policies of the Eastern Connecticut Housing Organization, Inc. – Hop River Homes conform to accounting principles generally accepted in the United States of America as applicable to nonprofit organizations.
Title: NOTE A – ACCOUNTING BASIS Accounting Policies: The accounting policies of the Eastern Connecticut Housing Organization, Inc. – Hop River Homes conform to accounting principles generally accepted in the United States of America as applicable to nonprofit organizations. De Minimis Rate Used: N Rate Explanation: Eastern Connecticut Housing Organization, Inc. – Hop River Homes has not elected to use the 10% de Minimis indirect cost rate. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Title: NOTE A – ACCOUNTING BASIS Accounting Policies: The accounting policies of the Eastern Connecticut Housing Organization, Inc. – Hop River Homes conform to accounting principles generally accepted in the United States of America as applicable to nonprofit organizations. De Minimis Rate Used: N Rate Explanation: Eastern Connecticut Housing Organization, Inc. – Hop River Homes has not elected to use the 10% de Minimis indirect cost rate. The accompanying schedule of expenditures of federal awards has been prepared on the accrual basis consistent with the preparation of the basic financial statements. Information included in the schedule of expenditures of federal awards 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).
Title: NOTE A – ACCOUNTING BASIS Accounting Policies: The accounting policies of the Eastern Connecticut Housing Organization, Inc. – Hop River Homes conform to accounting principles generally accepted in the United States of America as applicable to nonprofit organizations. De Minimis Rate Used: N Rate Explanation: Eastern Connecticut Housing Organization, Inc. – Hop River Homes has not elected to use the 10% de Minimis indirect cost rate. For cost reimbursement awards, revenues are recognized to the extent of expenditures. Expenditures have been recognized to the extent the related obligation was incurred within the applicable grant period and liquidated within 90 days after the end of the grant period.
Title: NOTE A – ACCOUNTING BASIS Accounting Policies: The accounting policies of the Eastern Connecticut Housing Organization, Inc. – Hop River Homes conform to accounting principles generally accepted in the United States of America as applicable to nonprofit organizations. De Minimis Rate Used: N Rate Explanation: Eastern Connecticut Housing Organization, Inc. – Hop River Homes has not elected to use the 10% de Minimis indirect cost rate. For performance-based awards, revenues are recognized to the extent of performance achieved during the grant period.
Title: NOTE A – ACCOUNTING BASIS Accounting Policies: The accounting policies of the Eastern Connecticut Housing Organization, Inc. – Hop River Homes conform to accounting principles generally accepted in the United States of America as applicable to nonprofit organizations. De Minimis Rate Used: N Rate Explanation: Eastern Connecticut Housing Organization, Inc. – Hop River Homes has not elected to use the 10% de Minimis indirect cost rate. Eastern Connecticut Housing Organization, Inc. – Hop River Homes has not elected to use the 10% de Minimis indirect cost rate.
Title: NOTE A – ACCOUNTING BASIS Accounting Policies: The accounting policies of the Eastern Connecticut Housing Organization, Inc. – Hop River Homes conform to accounting principles generally accepted in the United States of America as applicable to nonprofit organizations. De Minimis Rate Used: N Rate Explanation: Eastern Connecticut Housing Organization, Inc. – Hop River Homes has not elected to use the 10% de Minimis indirect cost rate. The December 31, 2022 ending balances of the U.S. Department of Agriculture loans included on the accompanying schedule of expenditures of federal awards was $721,211.

Finding Details

Finding 2021-001
Criteria: Tenant security deposit accounts must be fully funded and maintained in a separate bank account. Condition: During our audit testing, we noted that while the Project maintained a separate bank account for tenant security deposits, it was not fully funded. Cause: The tenant security deposits subledger is not reconciled with the tenant security deposits bank account to ensure account is fully funded. Effect: Tenant security deposits bank account is underfunded. Questioned Costs: None noted. Recommendation: The Project should implement controls to ensure that the tenant security deposits bank account is fully funded. Management’s Views and Corrective Action Plan: Management has subsequently corrected this and transferred tenant funds received for their security deposit from the operating bank account to the tenant security deposits bank account to ensure it is fully funded.
Finding 2022-001
Criteria: The Project’s reserve account must be fully funded in accordance with the budget as approved by USDA-RD and maintained in a separate bank account. Condition: During our audit testing, we noted that while the Project maintained a separate bank account for reserve funds, it was not funded in accordance with the budget. Cause: Budgeted transfers were not made before yearend to ensure the account is fully funded. Effect: Reserve bank account is underfunded. Questioned Costs: None noted. Recommendation: The Project should implement controls to ensure that the reserve bank account is fully funded. Management’s Views and Corrective Action Plan: Management will correct this when sufficient funds are able to be transferred into the reserve account.
Finding 2021-001
Criteria: Tenant security deposit accounts must be fully funded and maintained in a separate bank account. Condition: During our audit testing, we noted that while the Project maintained a separate bank account for tenant security deposits, it was not fully funded. Cause: The tenant security deposits subledger is not reconciled with the tenant security deposits bank account to ensure account is fully funded. Effect: Tenant security deposits bank account is underfunded. Questioned Costs: None noted. Recommendation: The Project should implement controls to ensure that the tenant security deposits bank account is fully funded. Management’s Views and Corrective Action Plan: Management has subsequently corrected this and transferred tenant funds received for their security deposit from the operating bank account to the tenant security deposits bank account to ensure it is fully funded.
Finding 2022-001
Criteria: The Project’s reserve account must be fully funded in accordance with the budget as approved by USDA-RD and maintained in a separate bank account. Condition: During our audit testing, we noted that while the Project maintained a separate bank account for reserve funds, it was not funded in accordance with the budget. Cause: Budgeted transfers were not made before yearend to ensure the account is fully funded. Effect: Reserve bank account is underfunded. Questioned Costs: None noted. Recommendation: The Project should implement controls to ensure that the reserve bank account is fully funded. Management’s Views and Corrective Action Plan: Management will correct this when sufficient funds are able to be transferred into the reserve account.