FAC Explorer

Audit 44829

FY End
2022-12-31
Total Expended
$7.63M
Findings
4
Programs
1
Organization: Bickford Street Elderly Housing Corporation (MA)
Year: 2022 Accepted: 2023-05-14
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
39615 2022-001 Material Weakness - A
39616 2022-001 Material Weakness - A
616057 2022-001 Material Weakness - A
616058 2022-001 Material Weakness - A

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $388,711 Yes 1

Contacts

Name Title Type
E7RRCL3K7N93 Robert Fine Auditee
7817941037 Karen Kent Auditor
No contacts on file

Notes to SEFA

Title: Federal Loan Programs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Bickford Street Elderly Housing Corporation (the "Corporation") under programs of the federal government for the year ended December 31, 2022. 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 thefinancial position, change in net assets, or cash flows of the Corporation. For the year ended December 31, 2022, no awards were passed through to subrecipients. De Minimis Rate Used: Y Rate Explanation: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or 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 to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The federal loan program listed below is administered directly by HUD, and balances andtransactions relating to the program are included in unrestricted net assets in the basic financial statements. Loan outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loan outstanding as of December 31, 2022 consists of: Assistance Listing Number: 14.157, Program Name: Section 202 Capital Advance, Outstanding December 31, 2022: $7,243,300

Finding Details

Finding 2022-001
Department of Housing and Urban Development Finding No. 2022-001 Unauthorized Distributions; Assistance Listing Number 14.157 Supportive Housing for the Elderly Criteria: Per the HUD Regulatory Agreement, the Corporation may not make payments from project cash without the approval of HUD. Condition: The Corporation incurred and paid the Sponsor fees totaling $45,000 which represents $15,000 for each of the years of 2021, 2020 and 2019. Cause: The Corporation believed the fees were appropriate based on their understanding of the facts and circumstance. Effect or Potential Effect: The Corporation is not in compliance with HUD laws and regulations. Questioned costs: $45,000 Context: In 2022, it was brought to management's attention by HUD that the fees disbursed to the Sponsor for 2021, 2020, and 2019 would be required to be repaid to the Project. Recommendation: The Sponsor should immediately reimburse the amount due to the Project and establish procedures to ensure payments of this nature are not made in the future. Identification of Repeat Finding: N/A Auditor Noncompliance Code: Unauthorized distribution of project assets. Finding Resolution Status: Resolved. During the year ended December 31, 2022, the Sponsor returned the requested funds to the Project. Views of Responsible Official: The Sponsor has repaid the fees to the Project as requested by HUD.
Finding 2022-001
Department of Housing and Urban Development Finding No. 2022-001 Unauthorized Distributions; Assistance Listing Number 14.157 Supportive Housing for the Elderly Criteria: Per the HUD Regulatory Agreement, the Corporation may not make payments from project cash without the approval of HUD. Condition: The Corporation incurred and paid the Sponsor fees totaling $45,000 which represents $15,000 for each of the years of 2021, 2020 and 2019. Cause: The Corporation believed the fees were appropriate based on their understanding of the facts and circumstance. Effect or Potential Effect: The Corporation is not in compliance with HUD laws and regulations. Questioned costs: $45,000 Context: In 2022, it was brought to management's attention by HUD that the fees disbursed to the Sponsor for 2021, 2020, and 2019 would be required to be repaid to the Project. Recommendation: The Sponsor should immediately reimburse the amount due to the Project and establish procedures to ensure payments of this nature are not made in the future. Identification of Repeat Finding: N/A Auditor Noncompliance Code: Unauthorized distribution of project assets. Finding Resolution Status: Resolved. During the year ended December 31, 2022, the Sponsor returned the requested funds to the Project. Views of Responsible Official: The Sponsor has repaid the fees to the Project as requested by HUD.
Finding 2022-001
Department of Housing and Urban Development Finding No. 2022-001 Unauthorized Distributions; Assistance Listing Number 14.157 Supportive Housing for the Elderly Criteria: Per the HUD Regulatory Agreement, the Corporation may not make payments from project cash without the approval of HUD. Condition: The Corporation incurred and paid the Sponsor fees totaling $45,000 which represents $15,000 for each of the years of 2021, 2020 and 2019. Cause: The Corporation believed the fees were appropriate based on their understanding of the facts and circumstance. Effect or Potential Effect: The Corporation is not in compliance with HUD laws and regulations. Questioned costs: $45,000 Context: In 2022, it was brought to management's attention by HUD that the fees disbursed to the Sponsor for 2021, 2020, and 2019 would be required to be repaid to the Project. Recommendation: The Sponsor should immediately reimburse the amount due to the Project and establish procedures to ensure payments of this nature are not made in the future. Identification of Repeat Finding: N/A Auditor Noncompliance Code: Unauthorized distribution of project assets. Finding Resolution Status: Resolved. During the year ended December 31, 2022, the Sponsor returned the requested funds to the Project. Views of Responsible Official: The Sponsor has repaid the fees to the Project as requested by HUD.
Finding 2022-001
Department of Housing and Urban Development Finding No. 2022-001 Unauthorized Distributions; Assistance Listing Number 14.157 Supportive Housing for the Elderly Criteria: Per the HUD Regulatory Agreement, the Corporation may not make payments from project cash without the approval of HUD. Condition: The Corporation incurred and paid the Sponsor fees totaling $45,000 which represents $15,000 for each of the years of 2021, 2020 and 2019. Cause: The Corporation believed the fees were appropriate based on their understanding of the facts and circumstance. Effect or Potential Effect: The Corporation is not in compliance with HUD laws and regulations. Questioned costs: $45,000 Context: In 2022, it was brought to management's attention by HUD that the fees disbursed to the Sponsor for 2021, 2020, and 2019 would be required to be repaid to the Project. Recommendation: The Sponsor should immediately reimburse the amount due to the Project and establish procedures to ensure payments of this nature are not made in the future. Identification of Repeat Finding: N/A Auditor Noncompliance Code: Unauthorized distribution of project assets. Finding Resolution Status: Resolved. During the year ended December 31, 2022, the Sponsor returned the requested funds to the Project. Views of Responsible Official: The Sponsor has repaid the fees to the Project as requested by HUD.