FAC Explorer

Audit 32350

FY End
2022-10-31
Total Expended
$14.81M
Findings
2
Programs
2
Organization: Ame-Zion Trinity H.d.f.c., Inc. (NY)
Year: 2022 Accepted: 2023-06-06
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33864 2022-001 - - N
610306 2022-001 - - N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $12.60M Yes 1
14.195 Section 8 Housing Assistance Payments Program $2.20M Yes 0

Contacts

Name Title Type
MBDAJNDGETK6 Douglas Ashbrook Auditee
8454732205 Matthew Stille Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 12426792.

Finding Details

Finding 2022-001
Statement of Condition During the year ended October 31, 2022, the mortgage lender did not require the project to make the required monthly deposits to the replacement reserve in the total amount of $69,996. The project is required to make monthly deposits to the reserve in the amount of $5,833. Criteria The regulatory agreement requires that the project make monthly deposits to its replacement reserve. Cause The mortgage lender did not implement monthly deposits to the replacement reserve account in keeping with the regulatory agreement requirements. Effect or Potential Effect Failure to make monthly payments resulted in an underfunding of the replacement reserve and a violation of the regulatory agreement. Recommendation Management should establish internal controls or procedures to ensure that the replacement reserve is funded in accordance with the terms of the regulatory agreement. Auditor Noncompliance Code N - Reserve for replacements deposits Finding Resolution Status Resolved Reporting Views of Responsible Officials Management transferred $93,333 to the replacement reserve account effective March 22, 2023 to fund the delinquent amount. In addition, management contacted the mortgage lender to reinstate monthly reserve funding beginning April 1, 2023.
Finding 2022-001
Statement of Condition During the year ended October 31, 2022, the mortgage lender did not require the project to make the required monthly deposits to the replacement reserve in the total amount of $69,996. The project is required to make monthly deposits to the reserve in the amount of $5,833. Criteria The regulatory agreement requires that the project make monthly deposits to its replacement reserve. Cause The mortgage lender did not implement monthly deposits to the replacement reserve account in keeping with the regulatory agreement requirements. Effect or Potential Effect Failure to make monthly payments resulted in an underfunding of the replacement reserve and a violation of the regulatory agreement. Recommendation Management should establish internal controls or procedures to ensure that the replacement reserve is funded in accordance with the terms of the regulatory agreement. Auditor Noncompliance Code N - Reserve for replacements deposits Finding Resolution Status Resolved Reporting Views of Responsible Officials Management transferred $93,333 to the replacement reserve account effective March 22, 2023 to fund the delinquent amount. In addition, management contacted the mortgage lender to reinstate monthly reserve funding beginning April 1, 2023.