FAC Explorer

Audit 303706

FY End
2022-06-30
Total Expended
$5.29M
Findings
4
Programs
2
Organization: 353-365 Housing Development Fund Company, Inc. (NY)
Year: 2022 Accepted: 2024-04-17
Auditor: Mayer Hoffman McCann CPAS the Ny Practice of Mayer Hoffman McCann PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393557 2022-003 Significant Deficiency Yes N
393558 2022-003 Significant Deficiency Yes N
969999 2022-003 Significant Deficiency Yes N
970000 2022-003 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.47M Yes 1
14.195 Section 8 Housing Assistance Payments Program $1.81M Yes 1

Contacts

Name Title Type
YRH8HGR4YNJ5 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 (the “Schedule”) includes the federal award activity of 353-365 Housing Development Fund Company, Inc. HUD Project No. 012-11297 (the “Company”), 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 operation of the Company, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Company. De Minimis Rate Used: N Rate Explanation: The Company has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. The Company has a loan guaranteed by HUD and the outstanding balance of the loan at June 30, 2022 is $3,395,139.

Finding Details

Finding 2022-003
Condition: The Project deposited surplus cash in excess of allowable amounts and failed to deposit current year’s surplus cash into its residual receipts account within 90 days of year end. 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 $19,573. Recommendation: The Company should design their internal controls to ensure that 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 October 31, 2022.
Finding 2022-003
Condition: The Project deposited surplus cash in excess of allowable amounts and failed to deposit current year’s surplus cash into its residual receipts account within 90 days of year end. 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 $19,573. Recommendation: The Company should design their internal controls to ensure that 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 October 31, 2022.
Finding 2022-003
Condition: The Project deposited surplus cash in excess of allowable amounts and failed to deposit current year’s surplus cash into its residual receipts account within 90 days of year end. 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 $19,573. Recommendation: The Company should design their internal controls to ensure that 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 October 31, 2022.
Finding 2022-003
Condition: The Project deposited surplus cash in excess of allowable amounts and failed to deposit current year’s surplus cash into its residual receipts account within 90 days of year end. 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 $19,573. Recommendation: The Company should design their internal controls to ensure that 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 October 31, 2022.