FAC Explorer

Audit 323119

FY End
2023-12-31
Total Expended
$2.84M
Findings
2
Programs
3
Organization: Palatine Manor Housing Development Fund Corporation 014-Ee-099 (NY)
Year: 2023 Accepted: 2024-09-30
Auditor: Burkhart Pizzanelli PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
500364 2023-001 - - E
1076806 2023-001 - - E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly (section 202 Capital Advance - Accumulated Balance) $2.57M Yes 1
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $258,850 - 0
14.856 Covid-19 Supplemental Payments $7,580 - 0

Contacts

Name Title Type
J5VGG1F8XTW1 Bryan Joyce Auditee
4135254321 Julie Quink Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The schedule of expenditures of federal awards is prepared 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. The Project did not pass-through any federal funds to a subrecipient in 2023. De Minimis Rate Used: N Rate Explanation: The Project 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 includes the federal award activity of Palatine Manor Housing Development Fund Corporation, HUD Project No. 014-EE-099. 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 Palatine Manor Housing Development Fund Corporation, HUD Project No. 014-EE-099, it is not intended to and does not present the financial position, change in net assets, or cash flows of Palatine Manor Housing Development Fund Corporation, HUD Project No. 014-EE-099.
Title: Department of Housing and Urban Development Loan Program Accounting Policies: The schedule of expenditures of federal awards is prepared 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. The Project did not pass-through any federal funds to a subrecipient in 2023. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Section 202 Capital Advance - Accumulated Balance is presented as of January 1, 2023. The Section 202 Capital Advance balance as of December 31, 2023 was $2,570,000.

Finding Details

Finding 2023-001
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2023-001: Major Program: Supportive Housing for the Elderly (Section 202 Capital Advance - Accumulated Balance), Federal Assistance Listing Number 14.157 STATEMENT OF CONDITION Two tenant files, out of six files reviewed, were for tenants who moved in during the year and management did not properly generate the Enterprise Income Verification (EIV) report timely. CRITERIA HUD Handbook 4350.3 Revision 1 for HUD Subsidized Multifamily Housing Programs requires owners to review the EIV report within 90 days after transmission of the move in certification to the Tenant Rental Assistance Certification System (TRACS). EFFECT OF CONDITION The EIV report for the tenants that moved in was not generated until after the 90-day period specified by HUD. CONTEXT During audit fieldwork, six files from a statistically valid sample were examined for compliance with tenant eligibility criteria. Of the six tenant files examined, two tenants were new move ins. The two tenant’s files did not contain the EIV verified in the required 90-day timeframe. CAUSE OF CONDITION The procedures to ensure compliance over HUD tenant compliance, including EIV verification, were not followed timely. RECOMMENDATION The auditor recommends ensuring all current and new staff are trained on tenants’ 90-day EIV reports and ensuring they are generated within the required time period to verify tenant information promptly and help reduce errors in subsidy payments. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS The Project will be monitoring use of the EIV system for move ins and recertifications.
Finding 2023-001
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2023-001: Major Program: Supportive Housing for the Elderly (Section 202 Capital Advance - Accumulated Balance), Federal Assistance Listing Number 14.157 STATEMENT OF CONDITION Two tenant files, out of six files reviewed, were for tenants who moved in during the year and management did not properly generate the Enterprise Income Verification (EIV) report timely. CRITERIA HUD Handbook 4350.3 Revision 1 for HUD Subsidized Multifamily Housing Programs requires owners to review the EIV report within 90 days after transmission of the move in certification to the Tenant Rental Assistance Certification System (TRACS). EFFECT OF CONDITION The EIV report for the tenants that moved in was not generated until after the 90-day period specified by HUD. CONTEXT During audit fieldwork, six files from a statistically valid sample were examined for compliance with tenant eligibility criteria. Of the six tenant files examined, two tenants were new move ins. The two tenant’s files did not contain the EIV verified in the required 90-day timeframe. CAUSE OF CONDITION The procedures to ensure compliance over HUD tenant compliance, including EIV verification, were not followed timely. RECOMMENDATION The auditor recommends ensuring all current and new staff are trained on tenants’ 90-day EIV reports and ensuring they are generated within the required time period to verify tenant information promptly and help reduce errors in subsidy payments. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS The Project will be monitoring use of the EIV system for move ins and recertifications.