Finding 1165303 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-12-18
Audit: 375855
Organization: Winslow Village II INC (MA)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: Winslow Village II, Inc. failed to submit its annual financial statements to MHFA for 2024.
  • Impacted Requirements: The organization did not establish adequate internal controls for timely financial reporting, violating the requirement to provide a complete report within 90 days post-fiscal year.
  • Recommended Follow-Up: File the overdue financial statement promptly and create a schedule to ensure future compliance with filing deadlines.

Finding Text

2024-002 - REPORTING Significant Deficiency/Other Noncompliance Criteria Within ninety (90) days following the end of each fiscal year of the Development, Borrower shall furnish the Agency with a complete annual financial report for the Development based upon an examination of the books and records of Borrower containing a detailed, itemized statement of all income and expenditures, prepared and certified by a certified public accountant in accordance with the reasonable requirements of the Agency. Condition Winslow Village II, Inc. has not filed its annual financial statements to MHFA for the year ended December 31, 2024. Cause Management has not developed a system of internal controls over financial reporting sufficient in order to submit timely financial statements to MHFA. Effect As a result of not filing its annual financial statement, MHFA is unable to assess the financial condition of the project. 2024-002 - REPORTING (CONTINUED) Prior Year Finding None noted Recommendation We recommend that the annual financial statement be filed in a form and substance required by MHFA as soon as possible and to implement a schedule to ensure timely filing in the future. Views of Responsible Officials See corrective action plan.

Corrective Action Plan

2024-002 - REPORTING Auditee’s Response and Planned Corrective Action Management, despite an unsuccessful software launch to a product that is better suited to support all aspects of the financial process, has made key changes (as noted above) to the internal financial control process of Winslow Village II Inc. Due to the unique nature of the circumstances that created the delay in reporting in a timely manner the situation is unlikely to be repeated. Planned Implementation Date of Corrective Action: In progress Person Responsible for Corrective Action: Marianne Correia, General Manager

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1165304 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.188 HOUSING FINANCE AGENCIES (HFA) RISK SHARING $1.50M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $479,521