FAC Explorer

Audit 415011

FY End
2025-12-31
Total Expended
$20.57M
Findings
1
Programs
3
Organization: Providence Building Sanitary and Educational Association (RI)
Year: 2025 Accepted: 2026-10-16
Auditor: CITRIN COOPERMAN & COMPANY LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1240616 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.135 MORTGAGE INSURANCE RENTAL AND COOPERATIVE HOUSING FOR MODERATE INCOME FAMILIES AND ELDERLY, MARKET INTEREST RATE $15.28M Yes 0
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $3.36M Yes 0
14.164 OPERATING ASSISTANCE FOR TROUBLED MULTIFAMILY HOUSING PROJECTS $1.94M Yes 1

Contacts

Name Title Type
M28FK6NCC4D8 Denis Fortier Auditee
4012145340 Joseph Sabetta Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Organization 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Expenditures 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 Section 8 Project-Based Rental Assistance reported in the Schedule of Expenditures of Federal Awards is net of the subsidy income of $735,367 that was withdrawn from the debt service reserve during the year ended December 31, 2025.
The determination of the Type A (“major”) federal financial assistance program is based upon the balance of the U.S. Department of Housing and Urban Development loan balances at the beginning of the reporting period. The Organization received no additional loans during the year. The balance of the loans at December 31, 2025, consists of the following: Federal Assistance Listing Number Program Name Outstanding Balance 14.135 Mortgage Insurance and Cooperative Housing for Moderate Income Families, Market Interest Rate $ 15,017,063 14.164 Operating Assistance for Troubled Multifamily Housing Projects 1,937,105 $ 16,954,168
The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
Finding 2025-001 – Late payment on the Flexible Subsidy Note Payable Federal Program: U.S Department of Housing and Urban Development, Operating Assistance for Troubled Multifamily Housing Projects, Federal Assistance Listing Number 14.164. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria or Specific Requirement: Providence Building Sanitary and Educational Association’s (the “Organization”) annual payment on its Flexible Subsidy Note Payable (“Flexible Note”) is payable from the Organization’s annual surplus cash. The Flexible Note payment should have been paid during the year ended December 31, 2025, based on the surplus cash as of December 31, 2024. Statement of Condition: The Organization did not timely make its debt payment due on its Flexible Note. The debt payment was made on March 25, 2026, which was approximately five months late. Cause: The Organization’s audit for the year ended December 31, 2024, was not finalized and issued until September 29, 2025, which was later in the year than usual. As a result, there was a management oversight and delay in identifying and making the required payment on the Flexible Note. Effect: The annual Flexible Note payment was approximately five months late. Known Questioned Costs: None Finding 2025-001 – Late payment on the Flexible Subsidy Note Payable (continued) Recommendation: We recommend that management implement procedures to ensure that the annual Flexible Note payment is timely remitted in accordance with the related agreements. Response Indicator: Agree View of Responsible Officials and Planned Corrective Action: The Organization’s audit for the year ended December 31, 2024, was not finalized and issued until September 29, 2025, which was later in the year than usual. As a result, there was a management oversight and delay in identifying and making the required payment on the Flexible Note. Management has implemented procedures to ensure that the annual Flexible Note payment is timely remitted in accordance with the related agreements.