EIN: 050477790
UEI: FBX4ZJX78EC3
Audited by: Kahn, Litwin, Renza & Co. Ltd.
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 27, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 27, 2026 (27 days from today).
What is a management decision? →FAC accepted this audit on October 28, 2024 — management decision was due April 28, 2025.
During the year ended June 30, 2024, the Organization only made eleven of the twelve required monthly deposits to the reserve for replacements account. The delinquent deposit totaled $2,400. Cause: The Organization has not received the Housing Assistance Payments (HAP payments) from HUD since February 2024. Management has prioritized payments for payroll and related employee and resident expenditures for the past seven months. Effect: The Organization is not in compliance with HUD guidelines which require monthly deposits to the reserve for replacements account. Recommendation: We recommend the Organization deposit $2,400 to the reserve for replacements account. Views of Responsible Officials: Management concurs with the finding and currently has five months of subsidies receivable from HUD. Management has been working with HUD administration to get the payments processed since March 2024 without success. The Organization has been operating on limited cashflow since March 2024; therefore, management believes that being delinquent by one month’s payment is reasonable. The Organization will process the delinquent deposit once the HAP payments are received.
Show full finding ▾Hide full finding ▴Delinquent Deposit to Reserve for Replacements Criteria: The regulations under which the Project operates require the Organization to make monthly deposits to the reserve for replacements account pursuant to the Regulatory Agreement with HUD. Condition: During the year ended June 30, 2024, the Organization only made eleven of the twelve required monthly deposits to the reserve for replacements account. The delinquent deposit totaled $2,400. Cause: The Organization has not received the Housing Assistance Payments (HAP payments) from HUD since February 2024. Management has prioritized payments for payroll and related employee and resident expenditures for the past seven months. Effect: The Organization is not in compliance with HUD guidelines which require monthly deposits to the reserve for replacements account. Recommendation: We recommend the Organization deposit $2,400 to the reserve for replacements account. Views of Responsible Officials: Management concurs with the finding and currently has five months of subsidies receivable from HUD. Management has been working with HUD administration to get the payments processed since March 2024 without success. The Organization has been operating on limited cashflow since March 2024; therefore, management believes that being delinquent by one month’s payment is reasonable. The Organization will process the delinquent deposit once the HAP payments are received.
The Organization will deposit $2,400 to the reserve for replacements account when the HAP payments are brought current.
FAC accepted this audit on October 28, 2024 — management decision was due April 28, 2025.
During 2023, the Organization completed a late deposit to their residual receipts account in the amount of $2,243. Cause: The Organization was not reviewing their surplus cash on a regular basis, resulting in a late deposit. Effect: The Organization is not in compliance with HUD guidelines which require surplus cash to be deposited within 90 days after close of the fiscal year. Recommendation: We recommend the Organization monitor and regularly calculate surplus cash to ensure a timely deposit. Views of Responsible Officials: Management deposited the $2,243 into their residual receipts account on September 7, 2023. Management is working on developing a procedure to calculate surplus cash on a monthly basis to ensure surplus cash is deposited on a timely basis. This is expected to be completed during fiscal year 2024.
Show full finding ▾Hide full finding ▴Late Residual Receipt Payment Criteria: The regulations under which the Project operates require the Organization to make deposits based on their surplus cash calculation into their residual receipts account in accordance with HUD requirements within 90 days after the close of the fiscal year. Condition: During 2023, the Organization completed a late deposit to their residual receipts account in the amount of $2,243. Cause: The Organization was not reviewing their surplus cash on a regular basis, resulting in a late deposit. Effect: The Organization is not in compliance with HUD guidelines which require surplus cash to be deposited within 90 days after close of the fiscal year. Recommendation: We recommend the Organization monitor and regularly calculate surplus cash to ensure a timely deposit. Views of Responsible Officials: Management deposited the $2,243 into their residual receipts account on September 7, 2023. Management is working on developing a procedure to calculate surplus cash on a monthly basis to ensure surplus cash is deposited on a timely basis. This is expected to be completed during fiscal year 2024.
The Organization will deposit $2,243 to their residual receipts account.
2022-002
FAC accepted this audit on October 30, 2022 — management decision was due April 30, 2023.
SECTION I ? SUMMARY OF AUDITORS? RESULTS Financial Statements Type of auditors' report issued: unmodified Internal control over financial reporting: ? Material weaknesses identified? yes X no ? Significant deficiencies identified that are not considered to be material weaknesses? X yes none reported ? Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major programs: ? Material weaknesses identified? yes X no ? Significant deficiencies identified that are not considered to be material weaknesses? yes X none reported Type of auditors' report issued on compliance for major programs: unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR Section 200.516(a)? yes X no Identification of major federal program: Assistance Listing Number Name of Federal Program 14.157 Supportive Housing for the Elderly Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee yes X no
Show full finding ▾Hide full finding ▴SECTION I ? SUMMARY OF AUDITORS? RESULTS Financial Statements Type of auditors' report issued: unmodified Internal control over financial reporting: ? Material weaknesses identified? yes X no ? Significant deficiencies identified that are not considered to be material weaknesses? X yes none reported ? Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major programs: ? Material weaknesses identified? yes X no ? Significant deficiencies identified that are not considered to be material weaknesses? yes X none reported Type of auditors' report issued on compliance for major programs: unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR Section 200.516(a)? yes X no Identification of major federal program: Assistance Listing Number Name of Federal Program 14.157 Supportive Housing for the Elderly Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee yes X no
Finding 2022-002: Late Residual Receipt Payment Auditee?s Response: Shalom II Housing, Inc. (the Organization) is in agreement with the finding and the recommendation. During 2021, the Organization did on review their surplus cash calculation on a regular basis, resulting in a late deposit. Subsequently, the Organization deposited $13,939 to their residual receipts account. Planned Corrective Action Plan: The Organization will deposit $13,939 to their residual receipts account. Name of Responsible Person: Renee St. John, Chief Financial Officer Name of Department Contact: Renee St. John, Chief Financial Officer Current Status: In Progress. Management is working on depositing the necessary funds into their residual receipts account. In addition, management is working on developing a procedure to calculate surplus cash on a monthly basis to ensure surplus cash is properly calculated. This is expected to be completed during fiscal year 2023.
2021-002
FAC accepted this audit on March 27, 2022 — management decision was due September 27, 2022.
The Organization does not have operational and accounting policies and procedures documenting its system of internal control. In addition, we noted that certain procedures do not have a proper review process due to a lack of segregation of duties. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Cause: The Organization?s size and budget constraints limit the number of personnel and do not facilitate the segregation of duties necessary to adequately separate procedures. In addition, due to the limited staff, a documented policies and procedures manual has not been created. Effect: Inadequate segregation of duties could adversely affect the Organization?s ability to detect and correct unintentional or intentional misstatements of the financial statements in a timely manner by employees in the normal course of performing their assigned functions. Recommendation: We recommend that the Organization implement the Parent's system of internal controls which documents its operational and accounting processes and incorporates a segregation of duties. Views of Responsible Officials: Management is working on merging the fiscal department and documenting the Organization?s operational and accounting processes. This is expected to be completed during fiscal year 2022.
Show full finding ▾Hide full finding ▴21-01 Document Policies, Procedures, System of Internal Control and Segregation of Duties Criteria: The Organization should have a system of internal controls, policies and procedures with adequate segregation of duties so that no one individual handles a transaction from its inception to completion. Condition: The Organization does not have operational and accounting policies and procedures documenting its system of internal control. In addition, we noted that certain procedures do not have a proper review process due to a lack of segregation of duties. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Cause: The Organization?s size and budget constraints limit the number of personnel and do not facilitate the segregation of duties necessary to adequately separate procedures. In addition, due to the limited staff, a documented policies and procedures manual has not been created. Effect: Inadequate segregation of duties could adversely affect the Organization?s ability to detect and correct unintentional or intentional misstatements of the financial statements in a timely manner by employees in the normal course of performing their assigned functions. Recommendation: We recommend that the Organization implement the Parent's system of internal controls which documents its operational and accounting processes and incorporates a segregation of duties. Views of Responsible Officials: Management is working on merging the fiscal department and documenting the Organization?s operational and accounting processes. This is expected to be completed during fiscal year 2022.
Name of Auditee: Shalom II Housing, Inc. HUD Auditee Identification Number: HUD Project No. 016-EE-006 Name of Audit Firm: Kahn, Litwin, Renza & Co., Ltd. Period Covered by the Audit: July 01, 2020 to June 30, 2021 Corrective Action Plan Prepared By: Name: Renee St. John Position: Chief Financial Officer Telephone Number: 401-331-1244 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations. Finding 2021-01: Document Policies, Procedures, System of Internal Control and Segregation of Duties Auditee?s Response: Shalom II Housing, Inc. (the Organization) is in agreement with the finding and the recommendation. The Organization will work on implementing a system of internal controls which documents the Organization's operational and accounting processes and incorporates a segregation of duties with the assistance of the Chief Financial Officer of the Jewish Collaborative Services? (the Parent). Planned Corrective Action Plan: The Organization has started reviewing its current system of internal controls and moving responsibilities to the Parent and utilizing the Parent?s documented operational and accounting processes. Over the next few months, the Organization is planning on modifying current processes to be consistent with the Parent?s operational and accounting processes. Name of Responsible Person: Renee St. John, Chief Financial Officer Name of Department Contact: Renee St. John, Chief Financial Officer Current Status: In Progress. The Organization is in the process of merging the fiscal department. Procedures have been put into place and management is in the process of documenting the updated operational and accounting processes. The written documentation is expected to be completed during fiscal year 2022.
2020-001
During 2020, the Organization overstated their cash and current obligations in their surplus cash calculation resulting in an insufficient amount of funds deposited into their residual receipt account. Subsequently, the Organization corrected their surplus cash calculation resulting in a late payment to their residual receipts account in the amount of $31,003. Cause: The Organization mistakenly included various receivables and payables that are not included in the surplus cash calculation, resulting in a preliminary understatement of surplus cash. Effect: The Organization is not in compliance with HUD guidelines which require surplus cash to be deposited within 90 days after close of the fiscal year. Recommendation: We recommend the Organization deposit the additional $31,003 to their residual receipts account and to regularly calculate surplus cash and review the computation to ensure it is properly calculated. Views of Responsible Officials: Management is working on depositing the necessary funds into their residual receipts account. In addition, management is working on developing a procedure to calculate surplus cash on a monthly basis to ensure surplus cash is properly calculated. This is expected to be completed during fiscal year 2022.
Show full finding ▾Hide full finding ▴21-02 Late Residual Receipt Payment Criteria: The regulations under which the Project operates require the Organization to make deposits based on their surplus cash calculation into their residual receipts account in accordance with HUD requirements within 90 days after the close of the fiscal year.Condition: During 2020, the Organization overstated their cash and current obligations in their surplus cash calculation resulting in an insufficient amount of funds deposited into their residual receipt account. Subsequently, the Organization corrected their surplus cash calculation resulting in a late payment to their residual receipts account in the amount of $31,003. Cause: The Organization mistakenly included various receivables and payables that are not included in the surplus cash calculation, resulting in a preliminary understatement of surplus cash. Effect: The Organization is not in compliance with HUD guidelines which require surplus cash to be deposited within 90 days after close of the fiscal year. Recommendation: We recommend the Organization deposit the additional $31,003 to their residual receipts account and to regularly calculate surplus cash and review the computation to ensure it is properly calculated. Views of Responsible Officials: Management is working on depositing the necessary funds into their residual receipts account. In addition, management is working on developing a procedure to calculate surplus cash on a monthly basis to ensure surplus cash is properly calculated. This is expected to be completed during fiscal year 2022.
Name of Auditee: Shalom II Housing, Inc. HUD Auditee Identification Number: HUD Project No. 016-EE-006 Name of Audit Firm: Kahn, Litwin, Renza & Co., Ltd. Period Covered by the Audit: July 01, 2020 to June 30, 2021 Corrective Action Plan Prepared By: Name: Renee St. John Position: Chief Financial Officer Telephone Number: 401-331-1244 Finding 2021-02: Late Residual Receipt Payment Auditee?s Response: Shalom II Housing, Inc. (the Organization) is in agreement with the finding and the recommendation. During 2020, the Organization overstated their cash and current obligations in their surplus cash calculation, resulting in an insufficient amount of funds deposited into their residual receipts account. Subsequently, the Organization corrected their surplus cash calculation, resulting in a late deposit to their residual receipts account in the amount $31,003. The Organization will work on regularly calculating surplus cash and review the computation to ensure it is properly calculated. Planned Corrective Action Plan: The Organization will deposit the additional $31,003 to their residual receipts account. Over the next few months, the Organization is planning on creating a procedure to calculate surplus cash and review the computations for accuracy. Name of Responsible Person: Renee St. John, Chief Financial Officer Name of Department Contact: Renee St. John, Chief Financial Officer Current Status: In Progress. Management is working on depositing the necessary funds into their residual receipts account. In addition, management is working on developing a procedure to calculate surplus cash on a monthly basis to ensure surplus cash is properly calculated. This is expected to be completed during fiscal year 2022.
2020-002
FAC accepted this audit on December 14, 2020 — management decision was due June 14, 2021.
FAC accepted this audit on January 14, 2020 — management decision was due July 14, 2020.
The Organization does not have operational and accounting policies and procedures documenting its system of internal control. In addition, we noted that certain procedures do not have a proper review process due to a lack of segregation of duties. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Cause: The Organization?s size and budget constraints limit the number of personnel and does not facilitate the segregation of duties necessary to adequately separate procedures. In addition, due to the limited staff, a documented policies and procedures manual has not been created. Effect: Inadequate segregation of duties could adversely affect the Organization?s ability to detect and correct unintentional or intentional misstatements to the financial statements in a timely manner by employees in the normal course of performing their assigned functions. Recommendation: We recommend that the Organization implement the Parent's system of internal controls which documents it's operational and accounting processes and incorporates a segregation of duties. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the recommended procedures will be completed and implemented.
Show full finding ▾Hide full finding ▴Criteria: A system of internal controls, policies and procedures with adequate segregation of duties so that no one individual handles a transaction from its inception to completion. Condition: The Organization does not have operational and accounting policies and procedures documenting its system of internal control. In addition, we noted that certain procedures do not have a proper review process due to a lack of segregation of duties. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Cause: The Organization?s size and budget constraints limit the number of personnel and does not facilitate the segregation of duties necessary to adequately separate procedures. In addition, due to the limited staff, a documented policies and procedures manual has not been created. Effect: Inadequate segregation of duties could adversely affect the Organization?s ability to detect and correct unintentional or intentional misstatements to the financial statements in a timely manner by employees in the normal course of performing their assigned functions. Recommendation: We recommend that the Organization implement the Parent's system of internal controls which documents it's operational and accounting processes and incorporates a segregation of duties. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the recommended procedures will be completed and implemented.
Name of Auditee: Shalom II Housing, Inc. HUD Auditee Identification Number: HUD Project No. 016-EE-006 Name of Audit Firm: Kahn, Litwin, Renza & Co., Ltd. Period Covered by the Audit: July 01, 2018 to June 30, 2019 Corrective Action Plan Prepared By: Name: Merelise Hitte Position: Chief Financial Officer Telephone Number: 401-331-1244 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations. Finding 2019-01: Document Policies, Procedures, System of Internal Control and Segregation of Duties Auditee?s Response: Shalom II Housing, Inc. (the Organization) is in agreement with the finding and the recommendation. The Organization will work on implementing a system of internal controls which documents the Organization's operational and accounting processes and incorporates a segregation of duties with the assistance of the Chief Financial Officer of the Jewish Collaborative Services? (the Parent). Planned Corrective Action Plan: The Organization has started reviewing its current system of internal controls and moving responsibilities to the Parent and utilizing the Parent?s documented operational and accounting processes. Over the next few months, the Organization is planning on modifying current processes to be consistent with the Parent?s operational and accounting processes. Name of Responsible Person: Merelise Hitte, Chief Financial Officer Name of Department Contact: Merelise Hitte, Chief Financial Officer Projected Implementation Date: The implementation is in progress and expected to be completed by December 31, 2019.
Our review of the general journal entries (journal entries) revealed that many entries lacked proper documentation and/or approval by a responsible employee or member of upper management or a member of the Board of Directors (the Board) or the Parent. Cause: The Organization?s staff limitations cause a lack of documentation for journal entries and the lack of approval for these entries recorded to the Organization?s books. Effect: Inadequate documentation and approval of journal entries may result in unauthorized or unsupported journal entries posted to the financial system which can result in a material misstatement in the financial statements and/or concealment of error or fraud. Recommendation: We recommend the Organization utilize the Parent's policies and procedures, whereby all journal entries are approved by an appropriate member of the Parent's finance team. All entries should be initialed by the preparer and the individual approving the journal entry in order to attribute responsibility to the appropriate individuals. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the recommended procedures will be completed and implemented.
Show full finding ▾Hide full finding ▴Criteria: A process in place for the documentation and approval of general journal entries. All journal entries need to include proper documentation supporting the transaction, employee responsible for the preparation of the journal entry, and approval by a member of upper management or a board member. Condition: Our review of the general journal entries (journal entries) revealed that many entries lacked proper documentation and/or approval by a responsible employee or member of upper management or a member of the Board of Directors (the Board) or the Parent. Cause: The Organization?s staff limitations cause a lack of documentation for journal entries and the lack of approval for these entries recorded to the Organization?s books. Effect: Inadequate documentation and approval of journal entries may result in unauthorized or unsupported journal entries posted to the financial system which can result in a material misstatement in the financial statements and/or concealment of error or fraud. Recommendation: We recommend the Organization utilize the Parent's policies and procedures, whereby all journal entries are approved by an appropriate member of the Parent's finance team. All entries should be initialed by the preparer and the individual approving the journal entry in order to attribute responsibility to the appropriate individuals. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the recommended procedures will be completed and implemented.
Name of Auditee: Shalom II Housing, Inc. HUD Auditee Identification Number: HUD Project No. 016-EE-006 Name of Audit Firm: Kahn, Litwin, Renza & Co., Ltd. Period Covered by the Audit: July 01, 2018 to June 30, 2019 Corrective Action Plan Prepared By: Name: Merelise Hitte Position: Chief Financial Officer Telephone Number: 401-331-1244 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations. Finding 2019-02: Documentation and Approval of General Journal Entries Auditee?s Response: The Organization is in agreement with the finding and the recommendation. The Organization will implement a procedure whereby all journal entries are approved by an appropriate member of Parent's finance team. All entries should be initialed by the preparer and the individual approving the journal entry in order to attribute responsibility to the appropriate individuals. Planned Corrective Action Plan: The Organization has started reviewing and revising its current policies and procedures over documentation and approval of general journal entries, and is in the process of adopting the Parent?s policies and procedures related to general journal entries. Over the next few months, the Organization is planning on modifying current processes to be consistent with the Parent?s policies and procedures and start utilizing members of the Parent?s finance team. Name of Responsible Person: Merelise Hitte, Chief Financial Officer Name of Department Contact: Merelise Hitte, Chief Financial Officer Projected Implementation Date: In Progress. The implementation is in progress and expected to be completed by December 31, 2019.
FAC accepted this audit on October 8, 2018 — management decision was due April 8, 2019.
FAC accepted this audit on October 17, 2017 — management decision was due April 17, 2018.
FAC accepted this audit on September 28, 2016 — management decision was due March 28, 2017.
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