Audit 293101

FY End

2022-12-31

Total Expended

$9.79M

Findings

2

Programs

2

Organization: Robert H Moore Housing Development Fund Corp. (NY)

Year: 2022 Accepted: 2024-03-01

Auditor: Galleros Robinson Certified Public Accountants LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
371423	2022-001	-	Yes	N
947865	2022-001	-	Yes	N

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$9.30M	Yes	1
14.195	Section 8 Housing Assistance Payments Program	$494,958	Yes	0

Contacts

Name	Title	Type
Z3S9EKWL8FG6	Peggie Waddell	Auditee
2126655500	Leonora Galleros	Auditor
No contacts on file

Notes to SEFA

Title: HUD CAPITAL ADVANCE PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards has been prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedules may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: Y Rate Explanation: The Project did not elect to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. The Project’s total HUD Capital Advance of $9,298,400 is recognized as net assets with donor restrictions as of December 31, 2022 in the Project’s statement of financial position. The capital advance was used to finance the construction and development of the Project’s buildings. There was no loan activity for 2022. The total advance is included as federal expenditures in the schedule.

Finding Details

Finding 2022-001

Criteria 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 During the year, we noted that the required deposits to the replacement reserve of $53,232 was not made. Cause The Project’s cash flow deficiencies resulted in noncompliance with the reserve requirement. Effect Required replacement reserve was not complied with during fiscal year 2022. Questioned Cost None. Context Twelve (12) monthly deposits were not made during the year. Recommendation We recommend that the Project regularly monitors deposits in the reserve for replacement to ensure that it complies with the requirements of 24 CFR sections 891.405 and 891.605 or request waiver due to cash flow issues. View of Responsible Official and Planned Corrective Action We are in communication with HUD on the proposed action plans to meet the required deposits.

Finding 2022-001

Criteria 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 During the year, we noted that the required deposits to the replacement reserve of $53,232 was not made. Cause The Project’s cash flow deficiencies resulted in noncompliance with the reserve requirement. Effect Required replacement reserve was not complied with during fiscal year 2022. Questioned Cost None. Context Twelve (12) monthly deposits were not made during the year. Recommendation We recommend that the Project regularly monitors deposits in the reserve for replacement to ensure that it complies with the requirements of 24 CFR sections 891.405 and 891.605 or request waiver due to cash flow issues. View of Responsible Official and Planned Corrective Action We are in communication with HUD on the proposed action plans to meet the required deposits.