Audit 322373

FY End

2023-12-31

Total Expended

$12.64M

Findings

4

Programs

1

Organization: Gates Plaza Housing Development Fund Company, Inc. (NY)

Year: 2023 Accepted: 2024-09-30

Auditor: Pkf O'Connor Davies LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
499511	2023-001	-	-	C
499512	2023-001	-	-	C
1075953	2023-001	-	-	C
1075954	2023-001	-	-	C

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$790,851	Yes	1

Contacts

Name	Title	Type
EHU2L75CEJK5	Dwain Mars	Auditee
7184164556	Steven J Walters	Auditor
No contacts on file

Notes to SEFA

Title: Capital Advance Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards (the “Schedule”) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Gates Plaza Housing Development Fund Company, Inc. (the “Entity”) has elected not to use the 10-percent de minimus indirect cost rate allowable under the Uniform Guidance. The Entity is reimbursed for programmatic and administrative costs in accordance with rules set forth by the U.S. Department of Housing and Urban Development (“HUD”). The Entity has received a HUD capital advance under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Entity received no additional loans or capital advances during the year. The balance of the capital advance outstanding at December 31, 2023 was $11,854,000.

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards (the “Schedule”) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Gates Plaza Housing Development Fund Company, Inc. (the “Entity”) has elected not to use the 10-percent de minimus indirect cost rate allowable under the Uniform Guidance. The Entity is reimbursed for programmatic and administrative costs in accordance with rules set forth by the U.S. Department of Housing and Urban Development (“HUD”). The Schedule includes the federal award activity of the Entity under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Entity, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Entity.

Finding Details

Finding 2023-001

Criteria The Entity is required to maintain residual receipts in an interest-bearing account. Condition The Entity’s residual receipts were not maintained in an interest-bearing account. Cause The interest rate on the account was changed by the bank, which was not noticed by management personnel before the year end. Context When performing our audit, we noted that the Entity’s residual receipts did not earn interest in 2023. Questioned Costs None Noted Effect The Entity was not in compliance with the requirement to maintain its residual receipts in an account that bears interest. Recommendation We recommend the Entity contact the bank to correct the interest rate on the account or move the balance to an interest-bearing account. Views of the Responsible Official See attached Corrective Action Plan.

Finding 2023-001

Criteria The Entity is required to maintain residual receipts in an interest-bearing account. Condition The Entity’s residual receipts were not maintained in an interest-bearing account. Cause The interest rate on the account was changed by the bank, which was not noticed by management personnel before the year end. Context When performing our audit, we noted that the Entity’s residual receipts did not earn interest in 2023. Questioned Costs None Noted Effect The Entity was not in compliance with the requirement to maintain its residual receipts in an account that bears interest. Recommendation We recommend the Entity contact the bank to correct the interest rate on the account or move the balance to an interest-bearing account. Views of the Responsible Official See attached Corrective Action Plan.

Finding 2023-001

Criteria The Entity is required to maintain residual receipts in an interest-bearing account. Condition The Entity’s residual receipts were not maintained in an interest-bearing account. Cause The interest rate on the account was changed by the bank, which was not noticed by management personnel before the year end. Context When performing our audit, we noted that the Entity’s residual receipts did not earn interest in 2023. Questioned Costs None Noted Effect The Entity was not in compliance with the requirement to maintain its residual receipts in an account that bears interest. Recommendation We recommend the Entity contact the bank to correct the interest rate on the account or move the balance to an interest-bearing account. Views of the Responsible Official See attached Corrective Action Plan.

Finding 2023-001

Criteria The Entity is required to maintain residual receipts in an interest-bearing account. Condition The Entity’s residual receipts were not maintained in an interest-bearing account. Cause The interest rate on the account was changed by the bank, which was not noticed by management personnel before the year end. Context When performing our audit, we noted that the Entity’s residual receipts did not earn interest in 2023. Questioned Costs None Noted Effect The Entity was not in compliance with the requirement to maintain its residual receipts in an account that bears interest. Recommendation We recommend the Entity contact the bank to correct the interest rate on the account or move the balance to an interest-bearing account. Views of the Responsible Official See attached Corrective Action Plan.