Audit 311243

FY End

2023-06-30

Total Expended

$8.41M

Findings

4

Programs

2

Organization: Eugene Smilovic Housing Development Fund Corporation (NY)

Year: 2023 Accepted: 2024-07-01

Auditor: Galleros Robinson Certified Public Accountants LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
404859	2023-002	-	Yes	N
404860	2023-002	-	Yes	N
981301	2023-002	-	Yes	N
981302	2023-002	-	Yes	N

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly - Capital Advance	$7.36M	Yes	1
14.157	Supportive Housing for the Elderly - Project Rental Assistance Contract	$1.05M	Yes	1

Contacts

Name	Title	Type
ZD8CQMCG5ZS7	Luzviminda Ongteco	Auditee
7185888200	Leonora Galleros	Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The accompanying schedule 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: N Rate Explanation: In the absence of a federally approved indirect cost rate, the Corporation has elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. The purpose of the schedule is to present a summary of those activities of the Corporation for the year ended June 30, 2023 which have been financed by the Federal government. For the purpose of the schedule, federal awards include any assistance provided by a Federal agency directly or indirectly in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, direct appropriations, and other non-cash assistance

Title: CAPITAL ADVANCE Accounting Policies: The accompanying schedule 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: N Rate Explanation: In the absence of a federally approved indirect cost rate, the Corporation has elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. The Corporation have total advances of $7,358,100 which remains outstanding as of June 30, 2023. This is capital advance under a Building Loan Agreement with HUD to finance the construction of Eugene Smilovic Arms. The total advance is included as federal expenditures in the schedule.

Finding Details

Finding 2023-002

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 Deposits into the reserve account were not made monthly. Two (2) out of 12 monthly deposit to the reserve account were made subsequent to June 30, 2023. Cause An oversight which was corrected subsequent to June 30, 2023. Effect Required replacement reserve was not complied with during fiscal year 2023. Questioned Cost None. Context Failure to make required monthly deposits for two (2) months. Recommendation We recommend that the Corporation regularly monitors the replacement reserve to ensure that it complies with the requirements of 24 CFR sections 891.405 and 891.605. View of Responsible Official and Planned Corrective Action We will monitor monthly to ensure deposits to replacement reserves are done on a timely basis.

Finding 2023-002

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 Deposits into the reserve account were not made monthly. Two (2) out of 12 monthly deposit to the reserve account were made subsequent to June 30, 2023. Cause An oversight which was corrected subsequent to June 30, 2023. Effect Required replacement reserve was not complied with during fiscal year 2023. Questioned Cost None. Context Failure to make required monthly deposits for two (2) months. Recommendation We recommend that the Corporation regularly monitors the replacement reserve to ensure that it complies with the requirements of 24 CFR sections 891.405 and 891.605. View of Responsible Official and Planned Corrective Action We will monitor monthly to ensure deposits to replacement reserves are done on a timely basis.

Finding 2023-002

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 Deposits into the reserve account were not made monthly. Two (2) out of 12 monthly deposit to the reserve account were made subsequent to June 30, 2023. Cause An oversight which was corrected subsequent to June 30, 2023. Effect Required replacement reserve was not complied with during fiscal year 2023. Questioned Cost None. Context Failure to make required monthly deposits for two (2) months. Recommendation We recommend that the Corporation regularly monitors the replacement reserve to ensure that it complies with the requirements of 24 CFR sections 891.405 and 891.605. View of Responsible Official and Planned Corrective Action We will monitor monthly to ensure deposits to replacement reserves are done on a timely basis.

Finding 2023-002

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 Deposits into the reserve account were not made monthly. Two (2) out of 12 monthly deposit to the reserve account were made subsequent to June 30, 2023. Cause An oversight which was corrected subsequent to June 30, 2023. Effect Required replacement reserve was not complied with during fiscal year 2023. Questioned Cost None. Context Failure to make required monthly deposits for two (2) months. Recommendation We recommend that the Corporation regularly monitors the replacement reserve to ensure that it complies with the requirements of 24 CFR sections 891.405 and 891.605. View of Responsible Official and Planned Corrective Action We will monitor monthly to ensure deposits to replacement reserves are done on a timely basis.