Audit 50076

FY End
2022-06-30
Total Expended
$1.00M
Findings
2
Programs
2
Organization: Juliette Corporation (MA)
Year: 2022 Accepted: 2022-10-26
Auditor: Cohnreznick LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
61518 2022-001 Material Weakness - N
637960 2022-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $699,455 Yes 1
14.157 Supportive Housing for the Elderly $304,047 - 0

Contacts

Name Title Type
PKRPGM9UU8N3 Kerry J. Ollen Auditee
6173713000 Brian Martin Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles forNon-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,wherein certain types of expenditures are not allowable or are limited as to reimbursement. JulietteCorporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the UniformGuidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal loan programs listed below are administered directly by Juliette Corporation and balances andtransactions relating to these programs are included in Juliette Corporation's basic financial statements.Loans outstanding at the beginning of the year and loans made during the year are included in the federalexpenditures presented in the Schedule. The balance of loans outstanding as of June 30, 2022 consists of: SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 125064.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles forNon-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,wherein certain types of expenditures are not allowable or are limited as to reimbursement. JulietteCorporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the UniformGuidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awardactivity of Juliette Corporation under programs of the federal government for the year ended June 30, 2022.The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of Juliette Corporation, it is not intended to and does not present the financialposition, changes in net assets, or cash flows of Juliette Corporation.

Finding Details

2022-1 ? Delinquent deposits to the replacement reserve Statement of Condition During the year ended June 30, 2022, the project did not make the required monthly deposits to the replacement reserve in the amount of $141,051. The project is required to make monthly deposits to the reserve in the amount of $141,051. Criteria The regulatory agreement requires that the project make monthly deposits to its replacement reserve. Cause The Client did not properly monitor the replacement reserve account to determine that the deposits were not made. Effect or Potential Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the regulatory agreement. Recommendation Management should properly monitor the replacement reserve account to ensure deposits are made as required. Reporting View of Responsible Officials Management of Juliette Corporation agrees with the finding and the auditor?s recommendations have been adopted.
2022-1 ? Delinquent deposits to the replacement reserve Statement of Condition During the year ended June 30, 2022, the project did not make the required monthly deposits to the replacement reserve in the amount of $141,051. The project is required to make monthly deposits to the reserve in the amount of $141,051. Criteria The regulatory agreement requires that the project make monthly deposits to its replacement reserve. Cause The Client did not properly monitor the replacement reserve account to determine that the deposits were not made. Effect or Potential Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the regulatory agreement. Recommendation Management should properly monitor the replacement reserve account to ensure deposits are made as required. Reporting View of Responsible Officials Management of Juliette Corporation agrees with the finding and the auditor?s recommendations have been adopted.