FAC Explorer

Audit 375855

FY End
2024-12-31
Total Expended
$1.98M
Findings
2
Programs
2
Organization: Winslow Village II INC (MA)
Year: 2024 Accepted: 2025-12-18
Auditor: CBIZ CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1165303 2024-002 Material Weakness Yes L
1165304 2024-003 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.188 HOUSING FINANCE AGENCIES (HFA) RISK SHARING $1.50M Yes 2
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $479,521 Yes 0

Contacts

Name Title Type
R1Z7WLANAHM8 Marianne Correia Auditee
7818375998 Michael Guyder Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Winslow Village II, Inc., 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 Winslow Village II, Inc., it is not intended to and does not present the financial position, changes in net deficit or cash flows of Winslow Village II, Inc.
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.
The Winslow Village II, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The Organization has a mortgage payable that is 75% insured by the Department of Housing and Urban Development (HUD) in the original amount of $2,540,000 under Section 542 (c) of the Housing Community Development Act of 1992. The amount reported on the Schedule of Expenditures of Federal Awards is 75% HUD insured portion of the mortgage payable at the beginning of the year. The outstanding balance as of December 31, 2024 is $1,950,187.

Finding Details

Finding 2024-002
2024-002 - REPORTING Significant Deficiency/Other Noncompliance Criteria Within ninety (90) days following the end of each fiscal year of the Development, Borrower shall furnish the Agency with a complete annual financial report for the Development based upon an examination of the books and records of Borrower containing a detailed, itemized statement of all income and expenditures, prepared and certified by a certified public accountant in accordance with the reasonable requirements of the Agency. Condition Winslow Village II, Inc. has not filed its annual financial statements to MHFA for the year ended December 31, 2024. Cause Management has not developed a system of internal controls over financial reporting sufficient in order to submit timely financial statements to MHFA. Effect As a result of not filing its annual financial statement, MHFA is unable to assess the financial condition of the project. 2024-002 - REPORTING (CONTINUED) Prior Year Finding None noted Recommendation We recommend that the annual financial statement be filed in a form and substance required by MHFA as soon as possible and to implement a schedule to ensure timely filing in the future. Views of Responsible Officials See corrective action plan.
Finding 2024-003
2024-003 - SPECIAL TESTS AND PROVISIONS Significant Deficiency/Other Noncompliance 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 Winslow Village II, Inc. did not make the additional deposits into the replacement reserve account required to meet project’s capital needs based on its December 31, 2023 financial statements. In addition, the Organization did 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 $65,380. Cause Sufficient controls were not in place which resulted in failure to deposits the required funds into the replacements reserve account in a timely manner. Effect The Organization’s reserve for replacement account is not sufficiently funded. Prior Year Finding None noted. Recommendation Management should review the Organization’s budget to ensure that the replacement reserve is funded in accordance with HUD regulations. Views of Responsible Officials See corrective action plan.