FAC Explorer

Audit 299944

FY End
2023-12-31
Total Expended
$1.77M
Findings
2
Programs
2
Organization: Taylor Brown Hdf CO (east Main Street Apartments (NY)
Year: 2023 Accepted: 2024-03-28
Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
388129 2023-001 - - N
964571 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.134 Mortgage Insurance_rental Housing $1.42M Yes 1
14.195 Section 8 Housing Assistance Payments Program $348,648 - 0

Contacts

Name Title Type
E1SFU5NLUEX8 Kyle Lyskawa Auditee
3154241821 Bettina Lipphardt Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Basis of Presentation This schedule of expenditures of federal awards includes the federal grant activity of Taylor Brown Housing Development Fund Company, Inc. (East Main Street Apartments), HUD Project No. 014-11145 (the 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 Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Insured Mortgage The Corporation obtained from HUD a guarantee of its mortgage payable. The outstanding balance of this mortgage at December 31, 2023, was $1,362,800. Indirect Costs The Corporation has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Indirect Costs The Corporation has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001: Mortgage Insurance – Rental Housing (Section 207), federal assistance listing number 14.134 Criteria: East Main Street Apartments 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. Condition: The required deposit of $6,393 for the year ended December 31, 2022 was not made within the 60 day timeline. Context: We reviewed the residual receipts deposits during the year. Cause: East Main Street Apartments’ surplus cash was not performed timely. Effect: East Main Street Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Recommendation: East Main Street Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement. Views of management and planned corrective action: East Main Street Apartments agrees with the finding and the required payment was made after the 60-day timeline.
Finding 2023-001
Finding 2023-001: Mortgage Insurance – Rental Housing (Section 207), federal assistance listing number 14.134 Criteria: East Main Street Apartments 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. Condition: The required deposit of $6,393 for the year ended December 31, 2022 was not made within the 60 day timeline. Context: We reviewed the residual receipts deposits during the year. Cause: East Main Street Apartments’ surplus cash was not performed timely. Effect: East Main Street Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Recommendation: East Main Street Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement. Views of management and planned corrective action: East Main Street Apartments agrees with the finding and the required payment was made after the 60-day timeline.