FAC Explorer

Audit 303379

FY End
2023-12-31
Total Expended
$3.16M
Findings
6
Programs
4
Organization: Hub II Housing Development Fund Co., Inc. (NY)
Year: 2023 Accepted: 2024-04-12
Auditor: Nugent & Haeussler PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393070 2023-002 - - L
393071 2023-002 - - L
393072 2023-002 - - L
969512 2023-002 - - L
969513 2023-002 - - L
969514 2023-002 - - L

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $2.53M Yes 1
10.427 Rural Rental Assistance Payments $359,547 Yes 1
10.415 Rural Rental Housing Loans Interest Subsidy $224,682 Yes 1
14.239 Home Investment Partnerships Program $46,800 - 0

Contacts

Name Title Type
FYKPNXZT2NZ8 Kelly Flood Auditee
8454963497 Mark M. Levy Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hub II Housing Development Fund Co., Inc. under programs of the federal government for the year ended December 31, 2023. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Hub II Housing Development Fund Co., Inc., it is not intended to and does not present the financial position, changes in net position, or cash flows of the Hub II Housing Development Fund Co., Inc. De Minimis Rate Used: N Rate Explanation: Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hub II Housing Development Fund Co., Inc. under programs of the federal government for the year ended December 31, 2023. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Hub II Housing Development Fund Co., Inc., it is not intended to and does not present the financial position, changes in net position, or cash flows of the Hub II Housing Development Fund Co., Inc. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Matching costs (the Organization’s share of certain program costs) are not included in the reported expenditures. The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amount reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the Organization’s financial reporting systems.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hub II Housing Development Fund Co., Inc. under programs of the federal government for the year ended December 31, 2023. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Hub II Housing Development Fund Co., Inc., it is not intended to and does not present the financial position, changes in net position, or cash flows of the Hub II Housing Development Fund Co., Inc. De Minimis Rate Used: N Rate Explanation: Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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.
Title: NON-CASH ASSISTANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hub II Housing Development Fund Co., Inc. under programs of the federal government for the year ended December 31, 2023. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Hub II Housing Development Fund Co., Inc., it is not intended to and does not present the financial position, changes in net position, or cash flows of the Hub II Housing Development Fund Co., Inc. De Minimis Rate Used: N Rate Explanation: Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization is the recipient of a federal award program that does not result in cash receipts or disbursements. The Organization was granted $315,200 of interest subsidies and rental assistance under the Rural Rental Housing program.
Title: RURAL DEVELOPMENT MORTGAGE PAYABLE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hub II Housing Development Fund Co., Inc. under programs of the federal government for the year ended December 31, 2023. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Hub II Housing Development Fund Co., Inc., it is not intended to and does not present the financial position, changes in net position, or cash flows of the Hub II Housing Development Fund Co., Inc. De Minimis Rate Used: N Rate Explanation: Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. As of December 31, 2023, the outstanding balance for the Rural Development Mortgage Payable was $2,434,023.
Title: HOUSING AND URBAN DEVELOPMENT LOAN PAYABLE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hub II Housing Development Fund Co., Inc. under programs of the federal government for the year ended December 31, 2023. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Hub II Housing Development Fund Co., Inc., it is not intended to and does not present the financial position, changes in net position, or cash flows of the Hub II Housing Development Fund Co., Inc. De Minimis Rate Used: N Rate Explanation: Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. As of December 31, 2023, the outstanding balance for the Federal HOME Investment Partnership Loan was $46,800

Finding Details

Finding 2023-002
Compliance Requirement: Data Submission Type of Finding: a) Compliance Finding Criteria: The Organization is required to submit a Data Collection Form with the Federal Audit Clearinghouse on an annual basis. Condition: The Organization did not timely submit a Data Collection Form for the year ended December 31, 2022. The organization should have filed the form within 30 days after the release of the audit report or nine months after their year-end, whichever is sooner. Cause: There was a misinterpretation of the Uniform Guidance reporting requirements. Effect: Without adequate internal controls over the annual filing of a Data Collection Form, the Organization was not able to ensure proper submission of the Data Collection Form. Recommendation: We recommend the Organization submit the Data Collection Form once the annual audit is complete. Management’s Response: Management has submitted the unfiled Data Collection Form to the Federal Audit Clearinghouse prior to the start of the new year. A review process will be developed to ensure that the Data Collection Form is completed and submitted within the required filing period.
Finding 2023-002
Compliance Requirement: Data Submission Type of Finding: a) Compliance Finding Criteria: The Organization is required to submit a Data Collection Form with the Federal Audit Clearinghouse on an annual basis. Condition: The Organization did not timely submit a Data Collection Form for the year ended December 31, 2022. The organization should have filed the form within 30 days after the release of the audit report or nine months after their year-end, whichever is sooner. Cause: There was a misinterpretation of the Uniform Guidance reporting requirements. Effect: Without adequate internal controls over the annual filing of a Data Collection Form, the Organization was not able to ensure proper submission of the Data Collection Form. Recommendation: We recommend the Organization submit the Data Collection Form once the annual audit is complete. Management’s Response: Management has submitted the unfiled Data Collection Form to the Federal Audit Clearinghouse prior to the start of the new year. A review process will be developed to ensure that the Data Collection Form is completed and submitted within the required filing period.
Finding 2023-002
Compliance Requirement: Data Submission Type of Finding: a) Compliance Finding Criteria: The Organization is required to submit a Data Collection Form with the Federal Audit Clearinghouse on an annual basis. Condition: The Organization did not timely submit a Data Collection Form for the year ended December 31, 2022. The organization should have filed the form within 30 days after the release of the audit report or nine months after their year-end, whichever is sooner. Cause: There was a misinterpretation of the Uniform Guidance reporting requirements. Effect: Without adequate internal controls over the annual filing of a Data Collection Form, the Organization was not able to ensure proper submission of the Data Collection Form. Recommendation: We recommend the Organization submit the Data Collection Form once the annual audit is complete. Management’s Response: Management has submitted the unfiled Data Collection Form to the Federal Audit Clearinghouse prior to the start of the new year. A review process will be developed to ensure that the Data Collection Form is completed and submitted within the required filing period.
Finding 2023-002
Compliance Requirement: Data Submission Type of Finding: a) Compliance Finding Criteria: The Organization is required to submit a Data Collection Form with the Federal Audit Clearinghouse on an annual basis. Condition: The Organization did not timely submit a Data Collection Form for the year ended December 31, 2022. The organization should have filed the form within 30 days after the release of the audit report or nine months after their year-end, whichever is sooner. Cause: There was a misinterpretation of the Uniform Guidance reporting requirements. Effect: Without adequate internal controls over the annual filing of a Data Collection Form, the Organization was not able to ensure proper submission of the Data Collection Form. Recommendation: We recommend the Organization submit the Data Collection Form once the annual audit is complete. Management’s Response: Management has submitted the unfiled Data Collection Form to the Federal Audit Clearinghouse prior to the start of the new year. A review process will be developed to ensure that the Data Collection Form is completed and submitted within the required filing period.
Finding 2023-002
Compliance Requirement: Data Submission Type of Finding: a) Compliance Finding Criteria: The Organization is required to submit a Data Collection Form with the Federal Audit Clearinghouse on an annual basis. Condition: The Organization did not timely submit a Data Collection Form for the year ended December 31, 2022. The organization should have filed the form within 30 days after the release of the audit report or nine months after their year-end, whichever is sooner. Cause: There was a misinterpretation of the Uniform Guidance reporting requirements. Effect: Without adequate internal controls over the annual filing of a Data Collection Form, the Organization was not able to ensure proper submission of the Data Collection Form. Recommendation: We recommend the Organization submit the Data Collection Form once the annual audit is complete. Management’s Response: Management has submitted the unfiled Data Collection Form to the Federal Audit Clearinghouse prior to the start of the new year. A review process will be developed to ensure that the Data Collection Form is completed and submitted within the required filing period.
Finding 2023-002
Compliance Requirement: Data Submission Type of Finding: a) Compliance Finding Criteria: The Organization is required to submit a Data Collection Form with the Federal Audit Clearinghouse on an annual basis. Condition: The Organization did not timely submit a Data Collection Form for the year ended December 31, 2022. The organization should have filed the form within 30 days after the release of the audit report or nine months after their year-end, whichever is sooner. Cause: There was a misinterpretation of the Uniform Guidance reporting requirements. Effect: Without adequate internal controls over the annual filing of a Data Collection Form, the Organization was not able to ensure proper submission of the Data Collection Form. Recommendation: We recommend the Organization submit the Data Collection Form once the annual audit is complete. Management’s Response: Management has submitted the unfiled Data Collection Form to the Federal Audit Clearinghouse prior to the start of the new year. A review process will be developed to ensure that the Data Collection Form is completed and submitted within the required filing period.