Audit 362407

FY End

2024-06-30

Total Expended

$3.67M

Findings

4

Programs

1

Organization: Ayer Elderly Housing Partnership, Inc. (MA)

Year: 2024 Accepted: 2025-07-16

Auditor: Cbiz CPAS PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
571485	2024-001	Significant Deficiency	-	N
571486	2024-001	Significant Deficiency	-	N
1147927	2024-001	Significant Deficiency	-	N
1147928	2024-001	Significant Deficiency	-	N

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$200,845	Yes	1

Contacts

Name	Title	Type
LKY6BLZHJK95	Kenneth Martin	Auditee
9787722771	Michael Guyder	Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – 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 Ayer Elderly Housing Partnership, Inc., under programs of the federal government for the year ended June 30, 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 Ayer Elderly Housing Partnership, Inc., it is not intended to and does not present the financial position, changes in net deficit or cash flows of Ayer Elderly Housing Partnership, Inc. 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. De Minimis Rate Used: N Rate Explanation: The Ayer Elderly Housing Partnership, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Ayer Elderly Housing Partnership, Inc., under programs of the federal government for the year ended June 30, 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 Ayer Elderly Housing Partnership, Inc., it is not intended to and does not present the financial position, changes in net deficit or cash flows of Ayer Elderly Housing Partnership, Inc.

Title: NOTE 2 – 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 Ayer Elderly Housing Partnership, Inc., under programs of the federal government for the year ended June 30, 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 Ayer Elderly Housing Partnership, Inc., it is not intended to and does not present the financial position, changes in net deficit or cash flows of Ayer Elderly Housing Partnership, Inc. 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. De Minimis Rate Used: N Rate Explanation: The Ayer Elderly Housing Partnership, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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: NOTE 3 – 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 Ayer Elderly Housing Partnership, Inc., under programs of the federal government for the year ended June 30, 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 Ayer Elderly Housing Partnership, Inc., it is not intended to and does not present the financial position, changes in net deficit or cash flows of Ayer Elderly Housing Partnership, Inc. 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. De Minimis Rate Used: N Rate Explanation: The Ayer Elderly Housing Partnership, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Ayer Elderly Housing Partnership, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Title: NOTE 4 – LOAN AND LOAN GUARANTEE PROGRAMS Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Ayer Elderly Housing Partnership, Inc., under programs of the federal government for the year ended June 30, 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 Ayer Elderly Housing Partnership, Inc., it is not intended to and does not present the financial position, changes in net deficit or cash flows of Ayer Elderly Housing Partnership, Inc. 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. De Minimis Rate Used: N Rate Explanation: The Ayer Elderly Housing Partnership, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has a capital advance from the Department of Housing and Urban Development in the amount of $3,465,200 under the Section 202 Supportive Housing for the Elderly Program. The balance of the capital advance at the beginning of the year is included in the Schedule of Expenditures of Federal Awards.

Finding Details

Finding 2024-001

U.S. Department of Housing and Urban Development CFDA #: 14.157 – Supportive Housing for the Elderly Other Matter/Significant Deficiency Criteria In accordance with HUD regulations, Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition The Organization did not make all of the required monthly deposits into the replacement reserve account. The Organization has delinquent deposits to reserve for replacement account in the amount of $35,642. Cause The Organization does not generate sufficient cash flow to make the required monthly deposits. Questioned Costs None identified. Context The Organization is required to make monthly deposits into the reserve for replacement account based on an amount as required by HUD. Effect or Potential Effect The Organization’s reserve for replacement account is not sufficiently funded. Repeat Finding No Recommendation Management should review the Organization’s budget to ensure that the replacement reserve is funded in accordance with HUD regulations. Auditee’s Response and Planned Corrective Action See Corrective Action Plan.

Finding 2024-001

U.S. Department of Housing and Urban Development CFDA #: 14.157 – Supportive Housing for the Elderly Other Matter/Significant Deficiency Criteria In accordance with HUD regulations, Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition The Organization did not make all of the required monthly deposits into the replacement reserve account. The Organization has delinquent deposits to reserve for replacement account in the amount of $35,642. Cause The Organization does not generate sufficient cash flow to make the required monthly deposits. Questioned Costs None identified. Context The Organization is required to make monthly deposits into the reserve for replacement account based on an amount as required by HUD. Effect or Potential Effect The Organization’s reserve for replacement account is not sufficiently funded. Repeat Finding No Recommendation Management should review the Organization’s budget to ensure that the replacement reserve is funded in accordance with HUD regulations. Auditee’s Response and Planned Corrective Action See Corrective Action Plan.

Finding 2024-001

U.S. Department of Housing and Urban Development CFDA #: 14.157 – Supportive Housing for the Elderly Other Matter/Significant Deficiency Criteria In accordance with HUD regulations, Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition The Organization did not make all of the required monthly deposits into the replacement reserve account. The Organization has delinquent deposits to reserve for replacement account in the amount of $35,642. Cause The Organization does not generate sufficient cash flow to make the required monthly deposits. Questioned Costs None identified. Context The Organization is required to make monthly deposits into the reserve for replacement account based on an amount as required by HUD. Effect or Potential Effect The Organization’s reserve for replacement account is not sufficiently funded. Repeat Finding No Recommendation Management should review the Organization’s budget to ensure that the replacement reserve is funded in accordance with HUD regulations. Auditee’s Response and Planned Corrective Action See Corrective Action Plan.

Finding 2024-001

U.S. Department of Housing and Urban Development CFDA #: 14.157 – Supportive Housing for the Elderly Other Matter/Significant Deficiency Criteria In accordance with HUD regulations, Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition The Organization did not make all of the required monthly deposits into the replacement reserve account. The Organization has delinquent deposits to reserve for replacement account in the amount of $35,642. Cause The Organization does not generate sufficient cash flow to make the required monthly deposits. Questioned Costs None identified. Context The Organization is required to make monthly deposits into the reserve for replacement account based on an amount as required by HUD. Effect or Potential Effect The Organization’s reserve for replacement account is not sufficiently funded. Repeat Finding No Recommendation Management should review the Organization’s budget to ensure that the replacement reserve is funded in accordance with HUD regulations. Auditee’s Response and Planned Corrective Action See Corrective Action Plan.