FAC Explorer

Audit 51066

FY End
2022-12-31
Total Expended
$859,807
Findings
4
Programs
2
Organization: Salisbury Housing Committee, Inc. (CT)
Year: 2022 Accepted: 2023-05-24
Auditor: Seward and Monde CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
51105 2022-001 - Yes N
51106 2022-001 - Yes N
627547 2022-001 - Yes N
627548 2022-001 - Yes N

Programs

ALN Program Spent Major Findings
10.427 Rural Rental Assistance Payments $62,132 - 0
10.415 Rural Rental Housing Loans $52,517 Yes 1

Contacts

Name Title Type
LCCQX834NCQ7 Peter Halle Auditee
8604350049 Michele Loso Boisvert Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1 - Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Salisbury Housing Committee, Inc., RD Project No. 06-03-169830220-017, under programs of the federal government for the fiscal 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 Salisbury Housing Committee, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Salisbury Housing Committee, Inc. Note 2 - 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. RURAL RENTAL HOUSING LOANS (10.415) - Salisbury Housing Committee, Inc. has received a U.S. Department of Agriculture rural rental housing loan. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Salisbury Housing Committee, Inc. received no additional loans during the year. Balances outstanding at the end of the audit period were $722,867.

Finding Details

Finding 2022-001
Statement of Condition: As of December 31, 2022, Sarum Village is ten months behind in deposits to the replacement reserve. Criteria: USDA requires that the replacement reserve account be maintained in a separate account, with monthly deposits made as required and that USDA approval is required prior to any withdrawals. Effect: Noncompliance with USDA regulations. Cause: The project had cash flow issues. Context: Review of the deposits to the replacement reserve account showed that seven deposits had been made, however, five had been for the year ended December 31, 2021. Recommendation: Management should ensure that required monthly deposits are made to the replacement reserve account. Management?s Response and Corrective Action Plan: We agree with the finding. Sarum Village is experiencing cash flow problems and will try to remedy the shortfall.
Finding 2022-001
Statement of Condition: As of December 31, 2022, Sarum Village is ten months behind in deposits to the replacement reserve. Criteria: USDA requires that the replacement reserve account be maintained in a separate account, with monthly deposits made as required and that USDA approval is required prior to any withdrawals. Effect: Noncompliance with USDA regulations. Cause: The project had cash flow issues. Context: Review of the deposits to the replacement reserve account showed that seven deposits had been made, however, five had been for the year ended December 31, 2021. Recommendation: Management should ensure that required monthly deposits are made to the replacement reserve account. Management?s Response and Corrective Action Plan: We agree with the finding. Sarum Village is experiencing cash flow problems and will try to remedy the shortfall.
Finding 2022-001
Statement of Condition: As of December 31, 2022, Sarum Village is ten months behind in deposits to the replacement reserve. Criteria: USDA requires that the replacement reserve account be maintained in a separate account, with monthly deposits made as required and that USDA approval is required prior to any withdrawals. Effect: Noncompliance with USDA regulations. Cause: The project had cash flow issues. Context: Review of the deposits to the replacement reserve account showed that seven deposits had been made, however, five had been for the year ended December 31, 2021. Recommendation: Management should ensure that required monthly deposits are made to the replacement reserve account. Management?s Response and Corrective Action Plan: We agree with the finding. Sarum Village is experiencing cash flow problems and will try to remedy the shortfall.
Finding 2022-001
Statement of Condition: As of December 31, 2022, Sarum Village is ten months behind in deposits to the replacement reserve. Criteria: USDA requires that the replacement reserve account be maintained in a separate account, with monthly deposits made as required and that USDA approval is required prior to any withdrawals. Effect: Noncompliance with USDA regulations. Cause: The project had cash flow issues. Context: Review of the deposits to the replacement reserve account showed that seven deposits had been made, however, five had been for the year ended December 31, 2021. Recommendation: Management should ensure that required monthly deposits are made to the replacement reserve account. Management?s Response and Corrective Action Plan: We agree with the finding. Sarum Village is experiencing cash flow problems and will try to remedy the shortfall.