FAC Explorer

Audit 14553

FY End
2023-06-30
Total Expended
$3.14M
Findings
4
Programs
2
Organization: Smokey Hollow Housing Development Fund Company, Inc. (NY)
Year: 2023 Accepted: 2024-01-30
Auditor: Dimarco Abiusi & Pascarella PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
10856 2023-001 - - L
10857 2023-002 - - N
587298 2023-001 - - L
587299 2023-002 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.96M Yes 2
14.195 Section 8 Housing Assistance Payments Program $182,195 - 0

Contacts

Name Title Type
NFJPENSUFYK1 Kyle Lyskawa Auditee
3154241821 Maria Snyder Auditor
No contacts on file

Notes to SEFA

Title: Note A Accounting Policies: Note B - Summary of Significant Accounting Policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Smokey Hollow Housing Development Fund Company, Inc. has elected not to use the 10- percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Note A - Basis Of Presentation - The accompanying schedule of expenditures of federal awards includes the federal award activity of Smokey Hollow Housing Development Fund Company, Inc. (St. Mary's Apartments), Project No. 014-EE030/NY06-S921-008, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of St. Mary's Apartments, it is not intended to and does not present the financial position, changes in net aseets, or cash flows of St. Mary's Apartments.
Title: Note B Accounting Policies: Note B - Summary of Significant Accounting Policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Smokey Hollow Housing Development Fund Company, Inc. has elected not to use the 10- percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Note B - Summary of Significant Accounting Policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Smokey Hollow Housing Development Fund Company, Inc. has elected not to use the 10- percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note C Accounting Policies: Note B - Summary of Significant Accounting Policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Smokey Hollow Housing Development Fund Company, Inc. has elected not to use the 10- percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Note C - U.S Department of Housing and Urban Development Loan Program - Smokey Hollow Housing Development Fund Company, Inc. has received a U.S. Department of Housing and Urban Development insured loan under Section 202 of the National Housing Act on September 29, 1993. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Smokey Hollow Housing Development Fund Company, Inc. received no additional loans during the year. The balance of the loan outstanding at June 30, 2023 consists of the following: ALN: 14.157; Program Name: Section 202 Supportive Housing for the Elderly - (Capital Advance); Outstanding balance at June 30, 2023: $2,956,800.

Finding Details

Finding 2023-001
Finding No. 2023-001: Prior Year Reporting Package and Data Collection Not Filed Timely a. Statement of Condition: The Smokey Hollow Housing Development Fund Company, Inc. June 30, 2022 reporting package and data collection form was not filed with the Federal Audit Clearinghouse on time. b. Criteria: 2 CFR section 200.512(a)(1) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period. c. Effect of condition: The effect is that the project would not be considered a "Low Risk Auditee" for at least the fiscal years ending June 30, 2023 and June 30, 2024. This designation will require the auditor to audit at least 40% of the project's programs as Major programs until such time that the project may be considered a “Low Risk Auditee” again. d. Cause of condition: The reporting package and data collection form was submitted to the Federal Audit Clearinghouse 252 days late due to management not monitoring CPA firm to enter data in data collection form as agreed upon resulting in a late filing. The form was submitted on December 7, 2023. e. Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. f. Views of responsible officials and planned corrective actions: St. Mary’s Apartments agrees with the finding and the auditor’s recommendations have been adopted.
Finding 2023-002
Finding No. 2023-002: Section 202 Supportive Housing for the Elderly – (Capital Advance) – CFDA NO. 14.157 a. Statement of condition: The required deposit of surplus cash of $9,604 as of June 30, 2022 to the residual receipts reserve account was not made within the required 60 days following the statement of financial position date. b. Criteria: Smokey Hollow is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the project’s fiscal year-end. c. Effect of condition: The project is not in compliance with the HUD regulatory agreement as it relates to the management of the residual receipts reserve. d. Cause of condition: A deposit of $4,935 was made 153 days late due to an oversight by the managing agent. The remaining $4,669 deposit due will be paid as soon as possible. Smokey Hollow should deposit the required funds in the future into the residual receipts reserve account within the 60-day requirement. f. Views of responsible officials and planned corrective actions: St. Mary’s Apartments agrees with the finding and the auditor’s recommendations have been adopted.
Finding 2023-001
Finding No. 2023-001: Prior Year Reporting Package and Data Collection Not Filed Timely a. Statement of Condition: The Smokey Hollow Housing Development Fund Company, Inc. June 30, 2022 reporting package and data collection form was not filed with the Federal Audit Clearinghouse on time. b. Criteria: 2 CFR section 200.512(a)(1) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period. c. Effect of condition: The effect is that the project would not be considered a "Low Risk Auditee" for at least the fiscal years ending June 30, 2023 and June 30, 2024. This designation will require the auditor to audit at least 40% of the project's programs as Major programs until such time that the project may be considered a “Low Risk Auditee” again. d. Cause of condition: The reporting package and data collection form was submitted to the Federal Audit Clearinghouse 252 days late due to management not monitoring CPA firm to enter data in data collection form as agreed upon resulting in a late filing. The form was submitted on December 7, 2023. e. Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. f. Views of responsible officials and planned corrective actions: St. Mary’s Apartments agrees with the finding and the auditor’s recommendations have been adopted.
Finding 2023-002
Finding No. 2023-002: Section 202 Supportive Housing for the Elderly – (Capital Advance) – CFDA NO. 14.157 a. Statement of condition: The required deposit of surplus cash of $9,604 as of June 30, 2022 to the residual receipts reserve account was not made within the required 60 days following the statement of financial position date. b. Criteria: Smokey Hollow is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the project’s fiscal year-end. c. Effect of condition: The project is not in compliance with the HUD regulatory agreement as it relates to the management of the residual receipts reserve. d. Cause of condition: A deposit of $4,935 was made 153 days late due to an oversight by the managing agent. The remaining $4,669 deposit due will be paid as soon as possible. Smokey Hollow should deposit the required funds in the future into the residual receipts reserve account within the 60-day requirement. f. Views of responsible officials and planned corrective actions: St. Mary’s Apartments agrees with the finding and the auditor’s recommendations have been adopted.