HEARTHSTONE CONGREGATE HOUSING CORPORATION

EIN: 470746808

UEI: YA5HT2KCFBU8

Data as of August 26, 2026

HEARTHSTONE CONGREGATE HOUSING CORPORATION7 audit years10 findings6 repeat
7
Audit Years
10
Total Findings
6
Repeat Findings

FY 2022-12-31

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on June 28, 2023. 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 December 28, 2023 (973 days ago).

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2022-003
Eligibility
MATERIAL WEAKNESSREPEAT

The Project only has one staff which handles the compliance issues which makes it difficult for the Project to have controls beyond the Project Manager?s knowledge and as a result has a lack of segregation of duties over this area. Cause: The Project has limited resources and one staff assigned to this function. Effect or Potential Effect: The control deficiencies result in more than a reasonable possibility that a material noncompliance with program requirements could occur and not be prevented or detected. Recommendation: As noted above, the Project has limited resources and may not be able to correct the deficiencies noted above. The Project should review the condition above and adopt procedures where feasible. Controls and procedures should be documented. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.

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Finding 2022-003: Internal Control Structure - Eligibility Rural Rental Housing Loan - 10.415 Material Weakness Repeat Finding ? Finding 2021-002 Criteria: The Project is responsible for establishing an effective internal control process to ensure the Project complies with the requirements governing the Rural Rental Housing program. Condition: The Project only has one staff which handles the compliance issues which makes it difficult for the Project to have controls beyond the Project Manager?s knowledge and as a result has a lack of segregation of duties over this area. Cause: The Project has limited resources and one staff assigned to this function. Effect or Potential Effect: The control deficiencies result in more than a reasonable possibility that a material noncompliance with program requirements could occur and not be prevented or detected. Recommendation: As noted above, the Project has limited resources and may not be able to correct the deficiencies noted above. The Project should review the condition above and adopt procedures where feasible. Controls and procedures should be documented. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.

Corrective Action Plan

Management agrees with the finding. Additional education has been budgeted in fiscal 2023 for the project manager. We have not been able to cross train another person due to the limited number of available staff.

Prior Finding References

2021-002

About Eligibility →
2022-004
Reporting
MATERIAL WEAKNESS

We had requested copies of Form RD 3560-7, Form RD 3560-10 and Attachment 4-F for the yead ended December 31, 2022 and management indicated they had not yet completed them yet which was beyond the 90 day requirement. Cause: The three reports are the responsibility of one individual to complete and they indicated they were waiting on the audited financials to be complete. The three reports are due in 90 days after the fiscal year end and the audit is not due for 9 months past the fiscal year end. Effect or Potential Effect: The Project was in material noncompliance with U.S.D.A. Rural Development reporting requirements. Recommendation: The Project should complete and submit the late reports immediately. Further Project should have procedures in place to ensure the require reports are submitted within the deadline. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.

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Finding 2022-004: Year End Report Rural Rental Housing Loan - 10.415 Noncompliance/Material Weakness Criteria: The Project is responsible for completing and submitting Form RD 3560-7, Form RD 3560-10 and Attachment 4-F, Performance Standards Borrower Self-Certification Letter, within 90 days following the close of the project year end. Condition: We had requested copies of Form RD 3560-7, Form RD 3560-10 and Attachment 4-F for the yead ended December 31, 2022 and management indicated they had not yet completed them yet which was beyond the 90 day requirement. Cause: The three reports are the responsibility of one individual to complete and they indicated they were waiting on the audited financials to be complete. The three reports are due in 90 days after the fiscal year end and the audit is not due for 9 months past the fiscal year end. Effect or Potential Effect: The Project was in material noncompliance with U.S.D.A. Rural Development reporting requirements. Recommendation: The Project should complete and submit the late reports immediately. Further Project should have procedures in place to ensure the require reports are submitted within the deadline. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.

Corrective Action Plan

Agree with the finding. Management will plan accordingly to allow submittal of all required reports by the deadline, regardless of final audit reports. All required reports have been submitted through MINC.

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FY 2021-12-31

FAC accepted this audit on August 21, 2022 — management decision was due February 21, 2023.

2021-002
Eligibility
MATERIAL WEAKNESSREPEAT

The Project only has one staff which handles the compliance issues which makes it difficult for the Project to have controls beyond the Project Manager?s knowledge and as a result has a lack of segregation of duties over this area. Cause: The Project has limited resources and one staff assigned to this function. Effect or Potential Effect: The control deficiencies result in more than a reasonable possibility that a material noncompliance with program requirements could occur and not be prevented or detected. Recommendation: As noted above, the Project has limited resources and may not be able to correct the deficiencies noted above. The Project should review the condition above and adopt procedures where feasible. Controls and procedures should be documented. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.

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Finding 2021-002: Internal Control Structure - Eligibility Rural Rental Housing Loan - 10.415 Material Weakness Repeat Finding ? Finding 2020-002 Criteria: The Project is responsible for establishing an effective internal control process to ensure the Project complies with the requirements governing the Rural Rental Housing program. Condition: The Project only has one staff which handles the compliance issues which makes it difficult for the Project to have controls beyond the Project Manager?s knowledge and as a result has a lack of segregation of duties over this area. Cause: The Project has limited resources and one staff assigned to this function. Effect or Potential Effect: The control deficiencies result in more than a reasonable possibility that a material noncompliance with program requirements could occur and not be prevented or detected. Recommendation: As noted above, the Project has limited resources and may not be able to correct the deficiencies noted above. The Project should review the condition above and adopt procedures where feasible. Controls and procedures should be documented. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.

Corrective Action Plan

Finding 2021-002: Internal Control Structure Audit Recommendation ? The Project should establish effective processes to ensure compliance with the Rural Rental Housing program regulations. Response ? Management agrees with the finding. Additional education has been provided this past year for the project manager. We have not been able to cross train another person due to the limited number of available staff.

Prior Finding References

2020-002

About Eligibility →
2021-003
Reporting
MATERIAL WEAKNESS

During our, we review information reported on Form RD 3560-10 and noted liabilities of $13,833 were not reported and included as part of the owner?s equity. The liabilities included accrued interest payable, property taxes payable and the security deposit liability. Cause: The Project has a sole individual responsible for the preparation of the document and the errors were not caught. Effect or Potential Effect: The Form RD 3560-10 was materially misstated. Recommendation: The Project should take additional time to review the year-end reports prior to submission to ensure they reconcile to the supporting accounting records and are included on the proper line item. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.

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Finding 2021-003: Year End Report Rural Rental Housing Loan - 10.415 Noncompliance/Material Weakness Criteria: The Project is responsible for reporting electronically Form RD 3560-10 to USDA after the fiscal year end which reports assets, liabilities and owner?s equity. These figures are to come directly from the Project?s accounting records. Condition: During our, we review information reported on Form RD 3560-10 and noted liabilities of $13,833 were not reported and included as part of the owner?s equity. The liabilities included accrued interest payable, property taxes payable and the security deposit liability. Cause: The Project has a sole individual responsible for the preparation of the document and the errors were not caught. Effect or Potential Effect: The Form RD 3560-10 was materially misstated. Recommendation: The Project should take additional time to review the year-end reports prior to submission to ensure they reconcile to the supporting accounting records and are included on the proper line item. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.

Corrective Action Plan

Finding 2021-003: Year End Report Audit Recommendation ? The Project should take additional time to review the year-end reports prior to submission to ensure they reconcile to the supporting accounting records and are included on the proper line item. Response ? Agree with the finding. Management will allow sufficient time to review all reports and documents prior to submission.

About Reporting →

FY 2020-12-31

FAC accepted this audit on July 4, 2021 — management decision was due January 4, 2022.

2020-002
Eligibility
MATERIAL WEAKNESSREPEAT

The Project only has one staff which handles the compliance issues which makes it difficult for the Project to have controls beyond the Project Manager?s knowledge and as a result has a lack of segregation of duties over this area. Cause: The Project has limited resources and one staff assigned to this function. Effect or Potential Effect: The control deficiencies result in more than a reasonable possibility that a material noncompliance with program requirements could occur and not be prevented or detected. Recommendation: As noted above, the Project has limited resources and may not be able to correct the deficiencies noted above. The Project should review the condition above and adopt procedures where feasible. Controls and procedures should be documented. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.

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Finding 2020-002: Internal Control Structure - Eligibility Rural Rental Housing Loan - 10.415 Material Weakness Repeat Finding ? Finding 2019-002 Criteria: The Project is responsible for establishing an effective internal control process to ensure the Project complies with the requirements governing the Rural Rental Housing program. Condition: The Project only has one staff which handles the compliance issues which makes it difficult for the Project to have controls beyond the Project Manager?s knowledge and as a result has a lack of segregation of duties over this area. Cause: The Project has limited resources and one staff assigned to this function. Effect or Potential Effect: The control deficiencies result in more than a reasonable possibility that a material noncompliance with program requirements could occur and not be prevented or detected. Recommendation: As noted above, the Project has limited resources and may not be able to correct the deficiencies noted above. The Project should review the condition above and adopt procedures where feasible. Controls and procedures should be documented. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.

Corrective Action Plan

Finding 2020-002: Internal Control Structure Audit Recommendation ? The Project should establish effective processes to ensure compliance with the Rural Rental Housing program regulations. Response ? Management agrees with the finding. Additional education has been provided this past year for the project manager. We have not been able to cross train another person this past year, but will work to accomplish that prior to the end of the current fiscal year.

Prior Finding References

2019-002

About Eligibility →

FY 2019-12-31

FAC accepted this audit on August 12, 2020 — management decision was due February 12, 2021.

2019-002
Eligibility
MATERIAL WEAKNESSREPEAT

The Project only has one staff which handles the compliance issues which makes it difficult for the Project to have controls beyond the Project Manager?s knowledge and as a result has a lack of segregation of duties over this area. Cause: The Project has limited resources and one staff assigned to this function. Effect or Potential Effect: The control deficiencies result in more than a reasonable possibility that a material noncompliance with program requirements could occur and not be prevented or detected. Recommendation: As noted above, the Project has limited resources and may not be able to correct the deficiencies noted above. The Project should review the condition above and adopt procedures where feasible. Controls and procedures should be documented. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.

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Finding 2019-002: Internal Control Structure - Eligibility Rural Rental Housing Loan - 10.415 Material Weakness Repeat Finding ? Finding 2018-002 Criteria: The Project is responsible for establishing an effective internal control process to ensure the Project complies with the requirements governing the Rural Rental Housing program. Condition: The Project only has one staff which handles the compliance issues which makes it difficult for the Project to have controls beyond the Project Manager?s knowledge and as a result has a lack of segregation of duties over this area. Cause: The Project has limited resources and one staff assigned to this function. Effect or Potential Effect: The control deficiencies result in more than a reasonable possibility that a material noncompliance with program requirements could occur and not be prevented or detected. Recommendation: As noted above, the Project has limited resources and may not be able to correct the deficiencies noted above. The Project should review the condition above and adopt procedures where feasible. Controls and procedures should be documented. View of the Responsible Officials of the Auditee: The auditee?s management agrees with the finding.

Corrective Action Plan

Response ? Management agrees with the finding. Additional education has been provided this past year for the project manager. We have not been able to cross train another person this past year, but will work to accomplish that prior to the end of the current fiscal year.

Prior Finding References

2018-002

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FY 2018-12-31

FAC accepted this audit on August 21, 2019 — management decision was due February 21, 2020.

2018-002
Eligibility
MATERIAL WEAKNESSREPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2017-002

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2018-003
Reporting
MATERIAL WEAKNESS

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

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FY 2017-12-31

FAC accepted this audit on July 2, 2018 — management decision was due January 2, 2019.

2017-002
Eligibility
MATERIAL WEAKNESS

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

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FY 2016-12-31

FAC accepted this audit on June 10, 2017 — management decision was due December 10, 2017.

2016-002
Eligibility
MATERIAL WEAKNESSREPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2015-002

About Eligibility →

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