FAC Explorer

Audit 398888

FY End
2025-12-31
Total Expended
$1.64M
Findings
1
Programs
1
Organization: Stand Down Housing, Inc. (RI)
Year: 2025 Accepted: 2026-04-16
Auditor: DAMIANO BURK & NUTTALL PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1206884 2025-001 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $141,525 Yes 1

Contacts

Name Title Type
KPWGPJDE5UH5 Erik Wallin Auditee
4013834730 Victoria Sylvia Auditor
No contacts on file

Notes to SEFA

NOTE A—BASIS OF PRESENTATION- The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Stand Down Housing, Inc. under programs of the federal government for the year ended December 31, 2025. 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 Stand Down Housing, Inc., it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Stand Down Housing, Inc. NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. NOTE C—INDIRECT COST RATE Stand Down Housing, Inc. has elected to use the 15% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
Condition: As of December 31, 2025, there was a shortfall of $12,498 in required deposits into the reserve for replacements. Criteria: As of December 31, 2025, in accordance with the Section 811 Capital Advance Program ("Program") Regulatory Agreement ("Agreement") with the United States Department of Housing and Urban Development ("HUD"), the Corporation is obligated to establish and maintain a reserve for replacements in a separate bank account under the Corporation's name. The Corporation was required to make monthly payments of $1,064 and $1,125, for the fiscal year 2025, unless a different amount or schedule is approved in writing by HUD. During 2025, the Corporation deposited $13,134 into the reserve account. While this met the minimum required monthly payments, the opening shortfall of $12,498 stemming from the period ended December 31, 2024, remains to be funded. This resulted in a shortfall of $12,498 as of December 31, 2025. Cause: Failure to make all required payments into the replacement reserve during the period under audit as result of the Corporation not having the cash to make the deposits. Effect or Potential Effect: Noncompliance with the terms and requirements of the Agreement as well as the compliance requirements of the Program in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Recommendation: We recommend that the Corporation make up the shortfall of deposits in the subsequent period and on a going forward basis continue to make the monthly required reserve for replacement deposits. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the auditor’s finding and recommendation. The Corporation will subsequently make the necessary deposits to align the reserve for replacement balance with the requirements of the Section 811 Capital Advance Program Regulatory Agreement.