Audit 292021

FY End

2020-10-31

Total Expended

$7.48M

Findings

4

Programs

2

Organization: Boston Road Housing Development Fund Company, Inc. (NY)

Year: 2020 Accepted: 2024-02-25

Auditor: Mayer Hoffman McCann CPAS the Ny Practice of Mayer Hoffman McCann PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
370457	2020-003	Significant Deficiency	-	N
370458	2020-003	Significant Deficiency	-	N
946899	2020-003	Significant Deficiency	-	N
946900	2020-003	Significant Deficiency	-	N

ALN	Program	Spent	Major	Findings
14.155	Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects	$5.80M	Yes	1
14.195	Section 8 Housing Assistance Payments Program	$1.67M	Yes	1

Contacts

Name	Title	Type
FA8MH2PF6YD3	Nestor Olivier	Auditee
2125630310	Vivian Jin	Auditor
No contacts on file

Notes to SEFA

Title: Note 3 - Mortage Accounting Policies: The schedule of expenditures of federal awards includes the federal award activity of Boston Road Housing Development Fund Company, Inc., HUD Project No. 012-11299, and is presented on the accrual basis of accounting, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of operations of Boston Road Housing Development Fund Company, Inc., it is not intended to and does not present the financial position, changes in net deficit or cash flows of Boston Road Housing Development Fund Company, Inc. De Minimis Rate Used: N Rate Explanation: Boston Road Housing Development Fund Company, Inc. has elected to not use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. Boston Road Housing Development Fund Company, Inc. has a loan guaranteed by HUD and the outstanding balance of the loan at October 31, 2020 is $5,684,527.

Finding Details

Finding 2020-003

Condition: The Project deposited surplus cash in excess of allowable amounts. Criteria: The Company is required to follow HUD’s guidelines and procedures for depositing surplus cash into a residual receipts account in an amount which is equal to allowable amount per surplus cash computation within 90 days after the end of the fiscal period. Cause: Internal controls at the Company are not properly designed to ensure timely calculation and deposit of surplus cash amounts. Effect: The Company was not in compliance with their Regulatory Agreement. Context: During our recalculation of management’s computation of surplus cash, we noted the residual receipts deposit was based on a preliminary calculation which resulted in excess payment to the residual receipts account of $151,275. Recommendation: The Company should design their internal controls to ensure that the calculation of surplus cash is reviewed and performed timely, to ensure they will comply with HUD guidelines, as stated above. Reporting Views of Responsible Officials: Management has acknowledged a breach in protocol and deposited the current year’s surplus cash on February 5, 2021.

Finding 2020-003

Condition: The Project deposited surplus cash in excess of allowable amounts. Criteria: The Company is required to follow HUD’s guidelines and procedures for depositing surplus cash into a residual receipts account in an amount which is equal to allowable amount per surplus cash computation within 90 days after the end of the fiscal period. Cause: Internal controls at the Company are not properly designed to ensure timely calculation and deposit of surplus cash amounts. Effect: The Company was not in compliance with their Regulatory Agreement. Context: During our recalculation of management’s computation of surplus cash, we noted the residual receipts deposit was based on a preliminary calculation which resulted in excess payment to the residual receipts account of $151,275. Recommendation: The Company should design their internal controls to ensure that the calculation of surplus cash is reviewed and performed timely, to ensure they will comply with HUD guidelines, as stated above. Reporting Views of Responsible Officials: Management has acknowledged a breach in protocol and deposited the current year’s surplus cash on February 5, 2021.

Finding 2020-003

Condition: The Project deposited surplus cash in excess of allowable amounts. Criteria: The Company is required to follow HUD’s guidelines and procedures for depositing surplus cash into a residual receipts account in an amount which is equal to allowable amount per surplus cash computation within 90 days after the end of the fiscal period. Cause: Internal controls at the Company are not properly designed to ensure timely calculation and deposit of surplus cash amounts. Effect: The Company was not in compliance with their Regulatory Agreement. Context: During our recalculation of management’s computation of surplus cash, we noted the residual receipts deposit was based on a preliminary calculation which resulted in excess payment to the residual receipts account of $151,275. Recommendation: The Company should design their internal controls to ensure that the calculation of surplus cash is reviewed and performed timely, to ensure they will comply with HUD guidelines, as stated above. Reporting Views of Responsible Officials: Management has acknowledged a breach in protocol and deposited the current year’s surplus cash on February 5, 2021.

Finding 2020-003

Condition: The Project deposited surplus cash in excess of allowable amounts. Criteria: The Company is required to follow HUD’s guidelines and procedures for depositing surplus cash into a residual receipts account in an amount which is equal to allowable amount per surplus cash computation within 90 days after the end of the fiscal period. Cause: Internal controls at the Company are not properly designed to ensure timely calculation and deposit of surplus cash amounts. Effect: The Company was not in compliance with their Regulatory Agreement. Context: During our recalculation of management’s computation of surplus cash, we noted the residual receipts deposit was based on a preliminary calculation which resulted in excess payment to the residual receipts account of $151,275. Recommendation: The Company should design their internal controls to ensure that the calculation of surplus cash is reviewed and performed timely, to ensure they will comply with HUD guidelines, as stated above. Reporting Views of Responsible Officials: Management has acknowledged a breach in protocol and deposited the current year’s surplus cash on February 5, 2021.