FAC Explorer

Audit 19318

FY End
2022-12-31
Total Expended
$11.81M
Findings
4
Programs
2
Organization: Victory One Housing Development Fund Corporation (NY)
Year: 2022 Accepted: 2023-08-10
Auditor: Vargas & Rivera LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22729 2022-001 Significant Deficiency - N
22730 2022-002 Significant Deficiency - P
599171 2022-001 Significant Deficiency - N
599172 2022-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $10.83M Yes 2
14.182 Section 8 New Construction and Substantial Rehabilitation $985,467 - 0

Contacts

Name Title Type
V9X8MGV43ZZ6 Malcolm A Punter Auditee
2122814887 Luis Rivera Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of Victory One Housing Development Fund Corporation 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 Regulation Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements 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 the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement The Project 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. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - On November 12, 1997 the Project entered into a Capital Advance/Building Loan Agreement under Section 202 of the National Housing Act of 1959 for the development of housing serving the elderly households The advance tothe Project was for $10,531,000 The advance need not be repaid so long as the housing remains available to elderly persons for at least 40 years.

Finding Details

Finding 2022-001
Criteria - Replacement Reserves: Compliance Requirement ? Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition: The Project did not make three of the required deposits to the replacement reserve account. Effect: The Project is not in compliance with the Regulatory Agreement. Context: The population included the 12 monthly cash disbursements from the operating account. Cause: Due to limited cash flow, management was unable to remit the required deposits. Recommendation: We recommend management make the required deposits as soon as possible. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and is in the process of taking necessary steps to transfer the delinquent deposits.
Finding 2022-002
Criteria - Reporting: Compliance Requirement ? Within 90 days following the end of each fiscal year the project owners must submit to HUD financial information derived from the audited financial statements electronically to HUD via the Internet (24 CFR 5.801). Condition: The financial information was not submitted to HUD within the 90 days following the end of fiscal year. Effect: The Project is not in compliance with 2 CFR 5.801. Context: The financial information was not filed timely. Cause: The financial statements were not finalized by the due date. Recommendation: The financial information should be filed as soon as possible. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and will file the report.
Finding 2022-001
Criteria - Replacement Reserves: Compliance Requirement ? Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition: The Project did not make three of the required deposits to the replacement reserve account. Effect: The Project is not in compliance with the Regulatory Agreement. Context: The population included the 12 monthly cash disbursements from the operating account. Cause: Due to limited cash flow, management was unable to remit the required deposits. Recommendation: We recommend management make the required deposits as soon as possible. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and is in the process of taking necessary steps to transfer the delinquent deposits.
Finding 2022-002
Criteria - Reporting: Compliance Requirement ? Within 90 days following the end of each fiscal year the project owners must submit to HUD financial information derived from the audited financial statements electronically to HUD via the Internet (24 CFR 5.801). Condition: The financial information was not submitted to HUD within the 90 days following the end of fiscal year. Effect: The Project is not in compliance with 2 CFR 5.801. Context: The financial information was not filed timely. Cause: The financial statements were not finalized by the due date. Recommendation: The financial information should be filed as soon as possible. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and will file the report.