EIN: 223191450
UEI: SCKZF1LHJN63
Audited by: Sanders, Walsh & Eaton, CPAs, LLC
Oversight agency: 14 [Department of Housing and Urban Development]
View federal awards & risk assessment →
Data as of September 7, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 16, 2025. 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 June 16, 2026 (86 days ago).
What is a management decision? →FAC accepted this audit on February 27, 2025 — management decision was due August 27, 2025.
The CDP accounting software is not set up to separate transactions for its RD project (Fred Bell Way) and to produce a separate statement of financial position and a general ledger. Cause: The CDP changed its accounting software and merge various accounts during the transition which made it difficult to separate projects' activities and financial records. Effect: Lack of accounting system that segregates and tracks funds for projects allows for comingling of funds from different projects Questioned Cost: None noted Recommendation: Establish an accounting system that provides for separate accountability for projects by segregating and tracking projects funds separately and producing separate financial records for each project. Management's Views and Corrective Action Plan: Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Show full finding ▾Hide full finding ▴Separate accounting records for housing project operations - (Material Weakness) Criteria: According to 7 CFR 3560.302, borrowers must establish accounting and financial management procedures necessary to conduct housing project operations in a financially safe and sound manner. Borrowers must maintain records in a manner suitable for an audit, and must be able to report accurate operational results to the Rural Development (RD) from these accounts and records. Condition: The CDP accounting software is not set up to separate transactions for its RD project (Fred Bell Way) and to produce a separate statement of financial position and a general ledger. Cause: The CDP changed its accounting software and merge various accounts during the transition which made it difficult to separate projects' activities and financial records. Effect: Lack of accounting system that segregates and tracks funds for projects allows for comingling of funds from different projects Questioned Cost: None noted Recommendation: Establish an accounting system that provides for separate accountability for projects by segregating and tracking projects funds separately and producing separate financial records for each project. Management's Views and Corrective Action Plan: Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Our accounting system does allow for these reports to be produced for the RD Project once we have the opening balance sheet separated by program. We are working with our Net Suite consultants to correct the historical transactions on the balance sheet to insure that all balance sheet accounts are maintained by program.Anticipated Completion Date- April 30, 2025. Responsible Contact Person- Kathleen Boyce, CFAO
2023-001
The required financial reports and forms for Fred Bell Way were not submitted to the RD. Cause: The CDP staff was not aware of and did not follow the guidelines for annual reporting. Effect: Failure to file annual reports to RD could result in the loss or withholding of rental assistance funds thereby putting a financial strain on the project. Questioned Cost: None noted Recommendation: Establish an understanding and initiate the requirements of the management and reporting of RD funds. Management's Views and Corrective Action Plan : Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Show full finding ▾Hide full finding ▴Annual Financial Reports Criteria: According to 7 CFR 3560.308, to ensure that the project is in sound financial condition and is complying with the program financial management requirements, the RD requires annual financial reports to be submitted by each borrower. Condition: The required financial reports and forms for Fred Bell Way were not submitted to the RD. Cause: The CDP staff was not aware of and did not follow the guidelines for annual reporting. Effect: Failure to file annual reports to RD could result in the loss or withholding of rental assistance funds thereby putting a financial strain on the project. Questioned Cost: None noted Recommendation: Establish an understanding and initiate the requirements of the management and reporting of RD funds. Management's Views and Corrective Action Plan : Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Once the FY 24 audit is complete we will insure that we are up to date with all required report filings. Anticipated Completion Date-April 30, 2025.Responsible Contact Person-Kathleen Boyce, CFAO
2023-002
Statement of financial position transactions were not allocated properly to programs/properties funded with federal funds. Cause: Due to a human error of individuals who were handling the accounting entries, some of transactions were not accurately allocated to the correct programs/properties. Effect: Improper allocation of transactions among various programs/properties could lead to comingling of funds from different projects. This could result in unallowable cost or in allowable cost charged simultaneously to two different programs/properties. Questioned Cost: None noted Recommendation: Establish an internal control procedures in place that provide for separate accountability for projects by allocating transactions properly and producing accurate financial reports for each federally funded programs/properties. Management's Views and Corrective Action Plan : Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Show full finding ▾Hide full finding ▴Financial Management System- (Material Weakness) Criteria: According to 2 CFR 200.302, the financial management system of each non-Federal entity must provide records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Condition: Statement of financial position transactions were not allocated properly to programs/properties funded with federal funds. Cause: Due to a human error of individuals who were handling the accounting entries, some of transactions were not accurately allocated to the correct programs/properties. Effect: Improper allocation of transactions among various programs/properties could lead to comingling of funds from different projects. This could result in unallowable cost or in allowable cost charged simultaneously to two different programs/properties. Questioned Cost: None noted Recommendation: Establish an internal control procedures in place that provide for separate accountability for projects by allocating transactions properly and producing accurate financial reports for each federally funded programs/properties. Management's Views and Corrective Action Plan : Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
We continue to review and update our procedures and process to insure that all financial transactions are properly allocated to programs/ properties funded with federal funds - Anticipated Completion Date-April 30, 2025.Responsible Contact Person-Kathleen Boyce, CFAO
2023-003
The CDP did not submit an annual operating budget and self-certification letter to USDA as required by regulations. Cause: The CDP staff was not aware of and did not follow the guidelines for the annual submission of operating budget and self-certification letter to USDA Effect: Increased risk of allocating unallowable costs and/or unauthorized spending. Operating budget enables the CDP to increase rents, adjust utility allowances for residents, and create capital budget. Failure to submit an operating budget may impact the financial health of the project and its residents. Failure to submit a self- certification letter is a violation of USDA performance standards. Questioned Cost: None noted Recommendation: Management to reach out to USDA to clarify a reporting format and put procedures in place to ensure that the annual operating budget as well as interim budget modifications are sent to USDA for review and approval. Management to put procedures in place to ensure a self-certification letter is submitted along with the USDA required financial reports. Management's Views and Corrective Action Plan : Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Show full finding ▾Hide full finding ▴U.S. Department Of Agriculture (USDA) reporting Criteria: According to 7 CFR 3560.205 - 3560.303, and HB-2-3560, the CDP needs to comply with certain reporting requirements, to include annual submission of housing project budget and self-certification letter. Condition: The CDP did not submit an annual operating budget and self-certification letter to USDA as required by regulations. Cause: The CDP staff was not aware of and did not follow the guidelines for the annual submission of operating budget and self-certification letter to USDA Effect: Increased risk of allocating unallowable costs and/or unauthorized spending. Operating budget enables the CDP to increase rents, adjust utility allowances for residents, and create capital budget. Failure to submit an operating budget may impact the financial health of the project and its residents. Failure to submit a self- certification letter is a violation of USDA performance standards. Questioned Cost: None noted Recommendation: Management to reach out to USDA to clarify a reporting format and put procedures in place to ensure that the annual operating budget as well as interim budget modifications are sent to USDA for review and approval. Management to put procedures in place to ensure a self-certification letter is submitted along with the USDA required financial reports. Management's Views and Corrective Action Plan : Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
We are in the process of submitting the required operating budget and self certification letter to the USDA - Anticpated Completion date -March 31,2025 Kathleen Boyce ,CFAO
2023-004
FAC accepted this audit on December 6, 2024 — management decision was due June 6, 2025.
The CDP accounting software is not set up to separate transactions for its RD project (Fred Bell Way) and to produce a separate statement of financial position and a general ledger. Cause: The CDP changed its accounting software and merge various accounts during the transition which made it difficult to separate projects' activities and financial records. Effect: Lack of accounting system that segregates and tracks funds for projects allows for comingling of funds from different projects Questioned Cost: Undetermined Recommendation: Establish an accounting system that provides for separate accountability for projects by segregating and tracking projects funds separately and producing separate financial records for each project. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Show full finding ▾Hide full finding ▴2023-001 Separate accounting records for housing project operations - (Material Weakness) Criteria:According to 7 CFR 3560.302, borrowers must establish accounting and financial management procedures necessary to conduct housing project operations in a financially safe and sound manner. Borrowers must maintain records in a manner suitable for an audit, and must be able to report accurate operational results to the Rural Development (RD) from these accounts and records. Condition: The CDP accounting software is not set up to separate transactions for its RD project (Fred Bell Way) and to produce a separate statement of financial position and a general ledger. Cause: The CDP changed its accounting software and merge various accounts during the transition which made it difficult to separate projects' activities and financial records. Effect: Lack of accounting system that segregates and tracks funds for projects allows for comingling of funds from different projects Questioned Cost: Undetermined Recommendation: Establish an accounting system that provides for separate accountability for projects by segregating and tracking projects funds separately and producing separate financial records for each project. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Our accounting system does allow for these reports to be produced for the RD Project once we have the opening balance sheet separated by program. We are working with our Net Suite consultants to correct the historical transactions on the balance sheet to insure that all balance sheet accounts are maintained by program.Anticipated Completion Date- December 31, 2024. Responsible Contact Person- Kathleen Boyce, CFAO
2022-001
The required financial reports and forms for Fred Bell Way were not submitted to the RD. Cause: The CDP staff was not aware of and did not follow the guidelines for annual reporting. Effect: Failure to file annual reports to RD could result in the loss or withholding of rental assistance funds thereby putting a financial strain on the project. Questioned Cost: Undetermined Recommendation: Establish an understanding and initiate the requirements of the management and reporting of RD funds. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Show full finding ▾Hide full finding ▴2023-002Annual Financial Reports Criteria:According to 7 CFR 3560.308, to ensure that the project is in sound financial condition and is complying with the program financial management requirements, the RD requires annual financial reports to be submitted by each borrower. Condition: The required financial reports and forms for Fred Bell Way were not submitted to the RD. Cause: The CDP staff was not aware of and did not follow the guidelines for annual reporting. Effect: Failure to file annual reports to RD could result in the loss or withholding of rental assistance funds thereby putting a financial strain on the project. Questioned Cost: Undetermined Recommendation: Establish an understanding and initiate the requirements of the management and reporting of RD funds. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Once the FY 24 audit is complete we will insure that we are up to date with all required report filings. Anticipated Completion Date- January 31, 2025.Responsible Contact Person-Kathleen Boyce, CFAO
2022-002
Statement of financial position transactions were not allocated properly to programs/properties funded with federal funds. Cause: Due to a human error of individuals who were handling the accounting entries, some of transactions were not accurately allocated to the correct programs/properties. Effect: Improper allocation of transactions among various programs/properties could lead to comingling of funds from different projects. This could result in unallowable cost or in allowable cost charged simultaneously to two different programs/properties. Questioned Cost: Undetermined Recommendation: Establish an internal control procedures in place that provide for separate accountability for projects by allocating transactions properly and producing accurate financial reports for each federally funded programs/properties. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Show full finding ▾Hide full finding ▴2023-003Financial Management System- (Material Weakness) Criteria:According to 2 CFR 200.302, the financial management system of each non-Federal entity must provide records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Condition: Statement of financial position transactions were not allocated properly to programs/properties funded with federal funds. Cause: Due to a human error of individuals who were handling the accounting entries, some of transactions were not accurately allocated to the correct programs/properties. Effect: Improper allocation of transactions among various programs/properties could lead to comingling of funds from different projects. This could result in unallowable cost or in allowable cost charged simultaneously to two different programs/properties. Questioned Cost: Undetermined Recommendation: Establish an internal control procedures in place that provide for separate accountability for projects by allocating transactions properly and producing accurate financial reports for each federally funded programs/properties. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
We are working with our Net Suite consultants to correct the historical transactions and on-going system procedures and processes to insure that the accounting software provides that all financial transactions are properly allocated to programs/properties funded with federal funds. Anticipated Completion Date-12/31/2024 . Responsible Contact Person-Kathleen Boyce, CFAO
2022-003
The CDP did not submit an annual operating budget and self-certification letter to USDA as required by regulations. Cause: The CDP staff was not aware of and did not follow the guidelines for the annual submission of operating budget and self-certification letter to USDA Effect: Increased risk of allocating unallowable costs and/or unauthorized spending. Operating budget enables the CDP to increase rents, adjust utility allowances for residents, and create capital budget. Failure to submit an operating budget may impact the financial health of the project and its residents. Failure to submit a self- certification letter is a violation of USDA performance standards. Questioned Cost: None noted Recommendation: Management to reach out to USDA to clarify a reporting format and put procedures in place to ensure that the annual operating budget as well as interim budget modifications are sent to USDA for review and approval. Management to put procedures in place to ensure a self-certification letter is submitted along with the USDA required financial reports. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost Criteria:Per 2 CFR section 200.303(a), a non-Federal entity must:
Show full finding ▾Hide full finding ▴2023-004 U.S. Department Of Agriculture (USDA) reporting Criteria: According to 7 CFR 3560.205 - 3560.303, and HB-2-3560, the CDP needs to comply with certain reporting requirements, to include annual submission of housing project budget and self-certification letter. Condition: The CDP did not submit an annual operating budget and self-certification letter to USDA as required by regulations. Cause: The CDP staff was not aware of and did not follow the guidelines for the annual submission of operating budget and self-certification letter to USDA Effect: Increased risk of allocating unallowable costs and/or unauthorized spending. Operating budget enables the CDP to increase rents, adjust utility allowances for residents, and create capital budget. Failure to submit an operating budget may impact the financial health of the project and its residents. Failure to submit a self- certification letter is a violation of USDA performance standards. Questioned Cost: None noted Recommendation: Management to reach out to USDA to clarify a reporting format and put procedures in place to ensure that the annual operating budget as well as interim budget modifications are sent to USDA for review and approval. Management to put procedures in place to ensure a self-certification letter is submitted along with the USDA required financial reports. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost Criteria:Per 2 CFR section 200.303(a), a non-Federal entity must:
We are in process of submitting the required operating budget and self-certification letter to the USDA. Anticipated Completion Date- 12/31/2024 Completed.Responsible Contact Person-Kathleen Boyce, CFAO
The CDP failed to submit to FAC the data collection form. Cause: The CDP failed to acquire the annual audit in a timely fashion resulting in a failure to file the data collection form. Effect: Failure to file data collection form could result in withholding of federal funds and jeopardize CDP's eligibility for federal awards. Questioned Cost: Undetermined Recommendation: Management needs to ensure the CDP can produce accurate and complete annual financial statements to ensure efficient audit process. Incomplete financial records will lead to increased testing which may result in delay of filing the data collection form. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Show full finding ▾Hide full finding ▴2023-005 Data Collection Form (Form SF-SAC) Criteria: According to 45 CFR 75.512, the audit must be completed and the data collection form (Form SF-SAC) must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The CDP failed to submit to FAC the data collection form. Cause: The CDP failed to acquire the annual audit in a timely fashion resulting in a failure to file the data collection form. Effect: Failure to file data collection form could result in withholding of federal funds and jeopardize CDP's eligibility for federal awards. Questioned Cost: Undetermined Recommendation: Management needs to ensure the CDP can produce accurate and complete annual financial statements to ensure efficient audit process. Incomplete financial records will lead to increased testing which may result in delay of filing the data collection form. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
We have submitted the annual SAC filing as the prior year's audits have been completed. We expect the FY24 audit to be completed by the end of January 2025 and the SAC filing for the fiscal year will be completed shortly thereafter which will be prior to the deadline of nine months after the end of the audit period. Anticipated Completion Date-02/28/2025.Responsible Contact Person-Kathleen Boyce, CFAO
2022-005
FAC accepted this audit on August 29, 2024 — management decision was due March 1, 2025.
The CDP accounting software is not set up to separate transactions for its RD project (Fred Bell Way) and to produce a separate statement of financial position and a general ledger. Cause: The CDP changed its accounting software and merge various accounts during the transition which made it difficult to separate projects' activities and financial records. Effect: Lack of accounting system that segregates and tracks funds for projects allows for comingling of funds from different projects Questioned Cost: Undetermined Recommendation: Establish an accounting system that provides for separate accountability for projects by segregating and tracking projects funds separately and producing separate financial records for each project. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Show full finding ▾Hide full finding ▴2022-001 Separate accounting records for housing project operations - (Material Weakness)Criteria:According to 7 CFR 3560.302, borrowers must establish accounting and financial management procedures necessary to conduct housing project operations in a financially safe and sound manner. Borrowers must maintain records in a manner suitable for an audit, and must be able to report accurate operational results to the Rural Development (RD) from these accounts and records. Condition: The CDP accounting software is not set up to separate transactions for its RD project (Fred Bell Way) and to produce a separate statement of financial position and a general ledger. Cause: The CDP changed its accounting software and merge various accounts during the transition which made it difficult to separate projects' activities and financial records. Effect: Lack of accounting system that segregates and tracks funds for projects allows for comingling of funds from different projects Questioned Cost: Undetermined Recommendation: Establish an accounting system that provides for separate accountability for projects by segregating and tracking projects funds separately and producing separate financial records for each project. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Our accounting system does allow for these reports to be produced for the RD Project once we have the opening balance sheet separated by program. We are working with our Net Suite consultants to correct the historical transactions on the balance sheet to insure that all balance sheet accounts are maintained by program.Anticipated Completion Date- August 31, 2024. Responsible Contact Person- Kathleen Boyce, CFAO
2021-001
The required financial reports and forms for Fred Bell Way were not submitted to the RD. Cause: The CDP staff was not aware of and did not follow the guidelines for annual reporting. Effect: Failure to file annual reports to RD could result in the loss or withholding of rental assistance funds thereby putting a financial strain on the project. Questioned Cost: Undetermined Recommendation: Establish an understanding and initiate the requirements of the management and reporting of RD funds. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Show full finding ▾Hide full finding ▴2022-002Annual Financial ReportsCriteria:According to 7 CFR 3560.308, to ensure that the project is in sound financial condition and is complying with the program financial management requirements, the RD requires annual financial reports to be submitted by each borrower. Condition: The required financial reports and forms for Fred Bell Way were not submitted to the RD. Cause: The CDP staff was not aware of and did not follow the guidelines for annual reporting. Effect: Failure to file annual reports to RD could result in the loss or withholding of rental assistance funds thereby putting a financial strain on the project. Questioned Cost: Undetermined Recommendation: Establish an understanding and initiate the requirements of the management and reporting of RD funds. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Once the FY 24 audit is complete we will insure that we are up to date with all required report filings. Anticipated Completion Date- November 30, 2024.Responsible Contact Person-Kathleen Boyce, CFAO
2021-002
Statement of financial position transactions were not allocated properly to programs/properties funded with federal funds. Cause: Due to a human error of individuals who were handling the accounting entries, some of transactions were not accurately allocated to the correct programs/properties. Effect: Improper allocation of transactions among various programs/properties could lead to comingling of funds from different projects. This could result in unallowable cost or in allowable cost charged simultaneously to two different programs/properties. Questioned Cost: Undetermined Recommendation: Establish an internal control procedures in place that provide for separate accountability for projects by allocating transactions properly and producing accurate financial reports for each federally funded programs/properties. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Show full finding ▾Hide full finding ▴Financial Management System- (Material Weakness) Criteria:According to 2 CFR 200.302, the financial management system of each non-Federal entity must provide records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Condition: Statement of financial position transactions were not allocated properly to programs/properties funded with federal funds. Cause: Due to a human error of individuals who were handling the accounting entries, some of transactions were not accurately allocated to the correct programs/properties. Effect: Improper allocation of transactions among various programs/properties could lead to comingling of funds from different projects. This could result in unallowable cost or in allowable cost charged simultaneously to two different programs/properties. Questioned Cost: Undetermined Recommendation: Establish an internal control procedures in place that provide for separate accountability for projects by allocating transactions properly and producing accurate financial reports for each federally funded programs/properties. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
We are working with our Net Suite consultants to correct the historical transactions and on-going system procedures and processes to insure that the accounting software provides that all financial transactions are properly allocated to programs/properties funded with federal funds. Anticipated Completion Date-9/30/2024 . Responsible Contact Person-Kathleen Boyce, CFAO
2021-003
Expenditures were charged to the program based on different percentages applied to indirect bills that benefit the entire organization. There was not a substantiated methodology to arrive at these percentages. Cause: The CDP failed to implement consistent and reasonable methodology to allocate indirect costs. Effect: Indirect charges allocated to a program based on unsubstantiated methodology can result in federal reimbursements that are not reflective of actual costs. Indirect costs may be overcharged to the program. Questioned Cost: Undetermined Recommendation: Management needs to ensure the CDP establishes a reasonable and consistent allocation methodology. Ideally, the methodology should be statistically based. That methodology should be used entity-wide to consistently allocate indirect costs to various programs. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Show full finding ▾Hide full finding ▴2022-004Unsubstantiated methodology to allocate indirect costs charged to a federal program - (Material Weakness)Criteria:Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Condition: Expenditures were charged to the program based on different percentages applied to indirect bills that benefit the entire organization. There was not a substantiated methodology to arrive at these percentages. Cause: The CDP failed to implement consistent and reasonable methodology to allocate indirect costs. Effect: Indirect charges allocated to a program based on unsubstantiated methodology can result in federal reimbursements that are not reflective of actual costs. Indirect costs may be overcharged to the program. Questioned Cost: Undetermined Recommendation: Management needs to ensure the CDP establishes a reasonable and consistent allocation methodology. Ideally, the methodology should be statistically based. That methodology should be used entity-wide to consistently allocate indirect costs to various programs. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
A consistent and substantiated methodology for accounting for indirect costs to be allocated was implemented in FY 23 and remains in place. Anticipated Completion Date-Completed.Responsible Contact Person-Kathleen Boyce, CFAO
The CDP failed to submit to FAC the data collection form. Cause: The CDP failed to acquire the annual audit in a timely fashion resulting in a failure to file the data collection form. Effect: Failure to file data collection form could result in withholding of federal funds and jeopardize CDP's eligibility for federal awards. Questioned Cost: Undetermined Recommendation: Management needs to ensure the CDP can produce accurate and complete annual financial statements to ensure efficient audit process. Incomplete financial records will lead to increased testing which may result in delay of filing the data collection form. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Show full finding ▾Hide full finding ▴Data Collection Form (Form SF-SAC)Criteria:According to 45 CFR 75.512, the audit must be completed and the data collection form (Form SF-SAC) must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The CDP failed to submit to FAC the data collection form. Cause: The CDP failed to acquire the annual audit in a timely fashion resulting in a failure to file the data collection form. Effect: Failure to file data collection form could result in withholding of federal funds and jeopardize CDP's eligibility for federal awards. Questioned Cost: Undetermined Recommendation: Management needs to ensure the CDP can produce accurate and complete annual financial statements to ensure efficient audit process. Incomplete financial records will lead to increased testing which may result in delay of filing the data collection form. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Upon the completion of the annual audits for FY22 – FY24 management will file Form SF-SAC with the USDA. Thereafter the annual audit will be completed on a timely basis which will allow for the timely filing of the Form SF-SAC with the USDA. The SAC filing for FY 21 has been completed. Anticipated Completion Date-11/30/2024.Responsible Contact Person-Kathleen Boyce, CFAO
2021-005
FAC accepted this audit on April 18, 2024 — management decision was due October 18, 2024.
The CDP accounting software is not set up to separate transactions for its RD project (Fred Bell Way) and to produce a separate statement of financial position and a general ledger. Cause: The CDP changed its accounting software and merge various accounts during the transition which made it difficult to separate projects' activities and financial records. Effect: Lack of accounting system that segregates and tracks funds for projects allows for comingling of funds from different projects Questioned Cost: None noted Recommendation: Establish an accounting system that provides for separate accountability for projects by segregating and tracking projects funds separately and producing separate financial records for each project. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
Show full finding ▾Hide full finding ▴Separate accounting records for housing project operations - (Material Weakness) Criteria: According to 7 CFR 3560.302, borrowers must establish accounting and financial management procedures necessary to conduct housing project operations in a financially safe and sound manner. Borrowers must maintain records in a manner suitable for an audit, and must be able to report accurate operational results to the Rural Development (RD) from these accounts and records. Condition: The CDP accounting software is not set up to separate transactions for its RD project (Fred Bell Way) and to produce a separate statement of financial position and a general ledger. Cause: The CDP changed its accounting software and merge various accounts during the transition which made it difficult to separate projects' activities and financial records. Effect: Lack of accounting system that segregates and tracks funds for projects allows for comingling of funds from different projects Questioned Cost: None noted Recommendation: Establish an accounting system that provides for separate accountability for projects by segregating and tracking projects funds separately and producing separate financial records for each project. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost
The Net Suite accounting software is set up to separate transactions for its Rural Development (RD) project (Fred Bell Way) and to produce a separate statement of financial position and a general ledger. However, at the point of conversion to the Net Suite software in March 2021 and for several months thereafter this functionality was not being utilized correctly. and as such, there are historical transactions which must be corrected to separate all of the transactions for the RD project (Fred Bell Way). We are working with Net Suite consultants to assist us in getting these corrections processed.Anticipated Completion Date April 15, 2024.Responsible Contact Person-Kathleen Boyce, CFAO.
The required financial reports and forms for Fred Bell Way were not submitted to the RD. Cause: The CDP staff was not aware of and did not follow the guidelines for annual reporting. Effect: Failure to file annual reports to RD could result in the loss or withholding of rental assistance funds thereby putting a financial strain on the project. Questioned Cost: None noted Recommendation: Establish an understanding and initiate the requirements of the management and reporting of RD funds. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost.
Show full finding ▾Hide full finding ▴Annual Financial Reports Criteria: According to 7 CFR 3560.308, to ensure that the project is in sound financial condition and is complying with the program financial management requirements, the RD requires annual financial reports to be submitted by each borrower. Condition: The required financial reports and forms for Fred Bell Way were not submitted to the RD. Cause: The CDP staff was not aware of and did not follow the guidelines for annual reporting. Effect: Failure to file annual reports to RD could result in the loss or withholding of rental assistance funds thereby putting a financial strain on the project. Questioned Cost: None noted Recommendation: Establish an understanding and initiate the requirements of the management and reporting of RD funds. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost.
The required financial reports and forms for Fred Bell Way were not submitted to the RD due to numerous changes in personnel in the Finance Department and issues related to the accounting system conversion in March 2021. We anticipate that the FY21, FY22 and FY23 audits will all be completed in May 2024 putting us in the position to provide the RD with all delinquent reports. Anticipated Completion Date October 15, 2024.Responsible Contact Person-Kathleen Boyce, CFAO
Statement of financial position transactions were not allocated properly to programs/properties funded with federal funds. Cause: Due to a human error of individuals who were handling the accounting entries, some of transactions were not accurately allocated to the correct programs/properties. Effect: Improper allocation of transactions among various programs/properties could lead to comingling of funds from different projects. This could result in unallowable cost or in allowable cost charged simultaneously to two different programs/properties. Questioned Cost: None noted Recommendation: Establish an internal control procedures in place that provide for separate accountability for projects by allocating transactions properly and producing accurate financial reports for each federally funded programs/properties. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost.
Show full finding ▾Hide full finding ▴Financial Management System- (Material Weakness) Cluster: Not applicable Sponsoring Agency U.S. Department of Housing and Urban Development Award Name Home Investment Partnerships Program Award Number Not applicable Assisting Listing Number 14.239 Award Year FY 2002 Pass-through entity Not applicable Criteria: According to 2 CFR 200.302, the financial management system of each non-Federal entity must provide records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Condition: Statement of financial position transactions were not allocated properly to programs/properties funded with federal funds. Cause: Due to a human error of individuals who were handling the accounting entries, some of transactions were not accurately allocated to the correct programs/properties. Effect: Improper allocation of transactions among various programs/properties could lead to comingling of funds from different projects. This could result in unallowable cost or in allowable cost charged simultaneously to two different programs/properties. Questioned Cost: None noted Recommendation: Establish an internal control procedures in place that provide for separate accountability for projects by allocating transactions properly and producing accurate financial reports for each federally funded programs/properties. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost.
We are working with our Net Suite consultants to correct the historical transactions and on-going system procedures and processes to ensure that the accounting software provides that all financial transactions are properly allocated to programs and properties funded with federal funds.Anticipated Completion Date April 30,2024.Responsible Contact Person-Kathleen Boyce, CFAO.
Not all federal expenditures were included on SEFA. Through our discussions with management, we identified federal expenditures that were excluded from SEFA. Cause The COVID-19 pandemic resulted in the receipt and expenditure of additional federal funds. There was a limited information regarding new awards and reliance on the prior year information. Effect A SEFA that is not complete and accurate could impact the scoping of an entity’s major programs and result in incomplete information being provided to the federal government.. Questioned Cost: None noted Recommendation: Review all grant agreements. Develop checklist of anticipated awards in advance of the year and also complete an interim SEFA to identify inconsistencies earlier in the fiscal year. We recommend a formal review of final year-end SEFA for completeness and accuracy evidenced by a formal sign-off/approval. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost.
Show full finding ▾Hide full finding ▴Completeness and accuracy of Schedule of Expenditures of Federal Awards (SEFA)- (Significant Deficiency) Cluster: Not applicable Sponsoring Agency U.S. Department of Housing and Urban Development Award Name Home Investment Partnerships Program Award Number Not applicable Assisting Listing Number 14.239 Award Year FY 2002 Pass-through entity Not applicable Criteria: 2 CFR 200.510 Financial statements requires auditees to prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records and other federal guidance. Condition: Not all federal expenditures were included on SEFA. Through our discussions with management, we identified federal expenditures that were excluded from SEFA. Cause The COVID-19 pandemic resulted in the receipt and expenditure of additional federal funds. There was a limited information regarding new awards and reliance on the prior year information. Effect A SEFA that is not complete and accurate could impact the scoping of an entity’s major programs and result in incomplete information being provided to the federal government.. Questioned Cost: None noted Recommendation: Review all grant agreements. Develop checklist of anticipated awards in advance of the year and also complete an interim SEFA to identify inconsistencies earlier in the fiscal year. We recommend a formal review of final year-end SEFA for completeness and accuracy evidenced by a formal sign-off/approval. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost.
In collaboration with the audit team, we will correct the procedures used to develop the Schedule of Expenditures of Federal Awards to ensure that it is completed correctly and accurately .Anticipated Completion Date April 30,2024.Responsible Contact Person-Kathleen Boyce, CFAO
The CDP failed to submit to FAC the data collection form. Cause: The CDP failed to acquire the annual audit in a timely fashion resulting in a failure to file the data collection form. Effect: Failure to file data collection form could result in withholding of federal funds and jeopardize CDP's eligibility for federal awards. Recommendation: Management needs to ensure the CDP can produce accurate and complete annual financial statements to ensure efficient audit process. Incomplete financial records will lead to increased testing which may result in delay of filing the data collection form. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost.
Show full finding ▾Hide full finding ▴Data Collection Form (Form SF-SAC) Cluster: Not applicable Sponsoring Agency U.S. Department of Housing and Urban Development Award Name Home Investment Partnerships Program Award Number Not applicable Assisting Listing Number 14.239 Award Year FY 2002 Pass-through entity Not applicable Criteria: According to 45 CFR 75.512, the audit must be completed and the data collection form (Form SF-SAC) must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition: The CDP failed to submit to FAC the data collection form. Cause: The CDP failed to acquire the annual audit in a timely fashion resulting in a failure to file the data collection form. Effect: Failure to file data collection form could result in withholding of federal funds and jeopardize CDP's eligibility for federal awards. Recommendation: Management needs to ensure the CDP can produce accurate and complete annual financial statements to ensure efficient audit process. Incomplete financial records will lead to increased testing which may result in delay of filing the data collection form. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost.
Upon the completion of the annual audits for FY21, FY22 and FY23 management will file Form SF-SAC with the Federal Audit Clearing House (FAC). Thereafter the annual audit will be completed on a timely basis which will allow for the timely filing of the Form SF-SAC with the FAC.Anticipated Completion Date October 15, 2024.Responsible Contact Person-Kathleen Boyce, CFAO
FAC accepted this audit on February 15, 2021 — management decision was due August 15, 2021.
FAC accepted this audit on February 18, 2020 — management decision was due August 18, 2020.
FAC accepted this audit on January 28, 2019 — management decision was due July 28, 2019.
FAC accepted this audit on December 18, 2017 — management decision was due June 18, 2018.
FAC accepted this audit on January 18, 2017 — management decision was due July 18, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
Browse other Single Audit organizations in Massachusetts →
Track your findings and corrective action plans across audit cycles.
Start tracking findings →Add it to a monitored group and get alerted when a new audit, finding, repeat finding, or management-decision deadline shows up — instead of checking back.
Checking several at once? Portfolio view →
© 2026 Single Audit Intelligence. All data is public domain.
