Thomas Wilbur Homestead, INCNon-Profit

Finding 2024-001: Late Audit Reporting Criteria: Uniform Guidance 2 CFR 200.512(a) requires that an audit must be completed and the data collection form and reporting package submitted within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Statement of Condition: The audit for the year ended June 30, 2024, had not yet commenced and was expected to be submitted by March 31, 2025. These delays have been compounded by staff turnover and vacant roles within the Organization, resulting in multiple years of outstanding submissions. Cause: The delay was due to staffing constraints and extended delays in the year-end close process at the Organization. Effect or Potential Effect: The failure to comply with Uniform Guidance requirements may result in noncompliance issues that could affect future funding and operational effectiveness. Recommendation: It is recommended that management implement procedures and controls to ensure that future audits are completed and submitted in a timely manner. Management’s Response: Management agrees with this finding. Please refer to the Corrective Action Plan for further details.

Finding 2023-001: Late Audit Reporting Criteria: Uniform Guidance 2 CFR 200.512(a) requires that an audit must be completed and the data collection form and reporting package submitted within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Statement of Condition: The audit, data collection form, and reporting package for the Corporation for the year ended June 30, 2023, were due for submission to the Federal Audit Clearinghouse by March 31, 2024. This delay has been compounded by staff turnover and vacant roles within management. Cause: The delay was due to staffing constraints and extended delays in the year-end close process at the Corporation. Effect or Potential Effect: The failure to comply with Uniform Guidance requirements may result in noncompliance issues that could affect future funding and operational effectiveness. Recommendation: It is recommended that management implement procedures and controls to ensure that future audits are completed and submitted in a timely manner. Management’s Response: Management agrees with this finding. Please refer to the Corrective Action Plan for further details.

Criteria: Requirement to maintain evidence of monthly rent rolls and a current tenant security deposit liability summary. Statement of Condition: Lack of documented evidence demonstrating the maintenance of monthly rent rolls and a current tenant security deposit liability summary. Cause: Oversight in record-keeping procedures regarding the current status of tenant security deposits. Effect or Potential Effect: Potential delay in the return of security deposits for move-out tenants due to insufficient documentation and lack of segregation of funds. Recommendation: Establish and maintain documented monthly rent rolls and a current tenant security deposit liability summary into the month-end close process. Management’s Response: We recognize the need to promptly enact measures to uphold monthly rent roll maintenance and the ongoing review of tenant security deposit liabilities. .

Condition: The Corporation only made 11 of 12 required deposits to the replacement reserve during the year. Cause: The Corporation did not have sufficient funds at the time of the deposit. Criteria: The Corporation is required to make monthly deposits to the replacement reserve in accordance with its regulatory agreement. Effect: The Corporation is not in compliance with its regulatory agreement.Recommendation: The Corporation should make the delinquent deposit. Additionally, the Corporation should implement internal control sufficient to ensure that such deposits are made each month. Management Response: Management is in agreement with the finding and is in the process of transferring the delinquent amount and implementing internal controls to prevent recurrence.