FAC Explorer

Audit 399815

FY End
2025-12-31
Total Expended
$1.75M
Findings
1
Programs
1
Organization: Stand Down Housing Westerly, Inc. (RI)
Year: 2025 Accepted: 2026-04-27
Auditor: DAMIANO BURK & NUTTALL PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1208853 2025-001 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $82,669 Yes 1

Contacts

Name Title Type
F8HUNAEASCP7 Frank Shea Auditee
4019412900 Victoria Sylvia Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Stand Down Housing Westerly, 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 Westerly, Inc., it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Stand Down Housing Westerly, Inc.
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.
Stand Down Housing Westerly, Inc. has elected to use the 15% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
Condition: During our audit, we noted that the Corporation’s internal controls over billing and collections were not operating effectively. Tenant receivables increased by 46% compared to the prior year, indicating delays in the collection of tenant rent. Additionally, deposits in transit totaling $14,701 were included in the bank reconciliation, with amounts outstanding for more than 90 days. Criteria: In accordance with 2 CFR §200.303, management is responsible for establishing and maintaining effective internal controls over federal awards, including processes to ensure timely billing, collection, and safeguarding of cash receipts. This includes regular review of tenant receivable balances, prompt identification of delinquent accounts, and timely deposit of funds. Cause: The control deficiencies appear to be primarily due to frequent staff turnover within the property management side, resulting in inconsistent execution of rent collection and deposit procedures. Effect: The significant increase in tenant receivables and the presence of deposits in transit aged over 90 days indicate ongoing weaknesses in internal controls. These deficiencies impaired the effective management of tenant receivables and necessitated material audit adjustments to properly state cash receipts and reconcile bank balances. Recommendation: The Corporation should implement a formal process to reconcile tenant receivable aging schedules as part of the monthly close. Additionally, tenant rent collections should be deposited at least weekly to ensure timely recording and improved tracking of cash receipts. Management’s Response: Management is in agreement with the auditors’ findings. The managing agent has hired an accounts receivable personnel to ensure rent collections and deposits are processed in a timely and consistent manner.