Audit 55107

FY End

2022-06-30

Total Expended

$827,072

Findings

2

Programs

1

Organization: Rose Arc Housing, Inc. (RI)

Year: 2022 Accepted: 2022-10-20

Auditor: Otrando Porcaro & Associates LTD

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
60064	2022-001	Material Weakness	Yes	N
636506	2022-001	Material Weakness	Yes	N

ALN	Program	Spent	Major	Findings
14.181	Supportive Housing for Persons with Disabilities	$775,700	Yes	1

Contacts

Name	Title	Type
RCU2EPFRKDU7	Kimberly Ash	Auditee
4017229540	Gregory A. Porcaro, Cpa/abv, Mst, Cff	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: 1. THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS INCLUDES THE FEDERAL AWARD ACTIVITY OF THE CORPORATION UNDER ITS PROGRAM OF THE FEDERAL GOVERNMENT FOR THE YEAR ENDED JUNE 30, 2022. THE INFORMATION IN THE 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 THE FINANCIAL POSITION, CHANGES IN NET ASSETS, OR CASH FLOWS OF THE CORPORATION. 2. EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE ACCRUAL BASIS OF ACCOUNTING. SUCH EXPENDITURES ARE RECOGNIZED FOLLOWING THE COST PRINCIPLES CONTIANED 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. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 775700.

Finding Details

Finding 2022-001

Criteria: Replacement reserve deposits should be made monthly in an amount determined by HUD. Condition: During the year ended June 30, 2022, ten of twelve deposits were made to the replacement reserve account. Cause: The project failed to make the required deposits to the replacement reserve. Effect or Potential Effect: The project is in violation of HUD replacement reserve procedures. Questioned Costs: None. Perspective: Deposits were not made for two of the twelve months in the audit period. Repeat Finding: Yes. Recommendation: We recommend that management make the required monthly deposits to the replacement reserve account. views of responsible officials: Management concurs with the finding and recommendation.

Finding 2022-001

Criteria: Replacement reserve deposits should be made monthly in an amount determined by HUD. Condition: During the year ended June 30, 2022, ten of twelve deposits were made to the replacement reserve account. Cause: The project failed to make the required deposits to the replacement reserve. Effect or Potential Effect: The project is in violation of HUD replacement reserve procedures. Questioned Costs: None. Perspective: Deposits were not made for two of the twelve months in the audit period. Repeat Finding: Yes. Recommendation: We recommend that management make the required monthly deposits to the replacement reserve account. views of responsible officials: Management concurs with the finding and recommendation.