FAC Explorer

Audit 372255

FY End
2025-06-30
Total Expended
$1.04M
Findings
1
Programs
1
Organization: Housing Partners for Positive Living, Inc. (RI)
Year: 2025 Accepted: 2025-11-18
Auditor: FJ & ASSOCIATES PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1162565 2025-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $173,570 Yes 0

Contacts

Name Title Type
LSGRAMWNKA45 Rita Gandhi Auditee
4012357000 Scott Farnes Auditor
No contacts on file

Notes to SEFA

The schedule of expenditures of federal awards includes the federal award activity of the Corporation. 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 the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. The Corporation has elected not to use the 10 percent de-minimis indirect cost rate allowed under the Uniform Guidance.
The Corporation received loans directly or indirectly from the U.S. Department of Housing and Urban Development which are included above. If there were no current year advances on the loan, the loan balance above reflects the beginning of the year balance. If there were advances on the loan, the loan balance above reflects the highest balance during the year.
Certain grants, while fully expended, contain continuing compliance requirements and are thus included in the Schedule.

Finding Details

Finding 2025-001
2025-001: Replacement Reserve Account Balance Below Target Threshold: Criteria: The HUD Handbook 4350.1, Chapter 4 specifies requirements for maintaining adequate reserve for replacement reserve accounts; Condition: The Corporation failed to adequately fund the replacement reserve from the effective date of increase in monthly deposits, resulting in replacement reserves being underfunded by $9,402. Effect: Failure to adequately fund the Replacement Reserve account may jeopardize the project’s ability to pay for future capital repairs and may place the project out of compliance with HUD requirements, potentially risking enforcement actions or funding limitations; Cause: The increased deposits were not initiated until two months after the effective date due to the timing of when the increase was approved and when the Corporation began receiving the corresponding funds. Recommendation: Management should continue paying the required monthly deposits to the Replacement Reserve account and develop a plan, subject to HUD approval, to restore the reserve to the required balance. Additionally, management should implement internal controls to ensure timely deposits going forward. Response: Management will ensure that the replacement reserve will be fully funded by the end of fiscal year 2026.