FAC Explorer

Audit 335050

FY End
2024-06-30
Total Expended
$804,478
Findings
4
Programs
1
Organization: Maple-Claremont, Inc. (NY)
Year: 2024 Accepted: 2024-12-30
Auditor: Galleros Robinson Certified Public Accountants LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
517144 2024-001 Significant Deficiency Yes N
517145 2024-002 Significant Deficiency Yes C
1093586 2024-001 Significant Deficiency Yes N
1093587 2024-002 Significant Deficiency Yes C

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $804,478 Yes 2

Contacts

Name Title Type
W71KJ2R5A1Q8 Irene Math Auditee
9146710600 Magdalena Lopez Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION 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, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Maple-Claremont, Inc. (the “Organization”) under programs of the federal government for the year ended June 30, 2024. 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 the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: SUBRECIPIENTS 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, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. There were no payments made to subrecipients for federal awards received during the year ended June 30, 2024.

Finding Details

Finding 2024-001
Finding 2024-001, Replacement Reserve Deposits (Assistance Listing No. 14.181) Criteria: The federal program 14.181 requires that the Owner 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. An amount as required by HUD will be deposited monthly in the reserve fund. Condition and Context: Timely deposits were not made to the reserve account. Five (5) out of the 12 monthly required deposits into the replacement reserve were not timely deposited during the first half of the fiscal year. Cause: There was turnover in staff during the year, and the new staff was not aware of the monthly deposit requirement. Effect: The Organization was not in compliance with the monthly deposit requirement. Identification as a repeat finding: Yes. Questioned costs: None. Recommendation: We recommend that the Organization regularly monitors deposits in the reserve for replacement to ensure that it complies with the requirements of 24 CFR sections 891.405 and 891.605 and ensure that personnel in-charge are made aware of the HUD compliance requirements. View of responsible officials: This finding was identified in the June 30, 2023 audit and correction was implemented in the fiscal year ended June 30, 2024. To address this issue the monthly replacement reserve bank transfers were set up in the banking system as ongoing automatic recurring transfers. A separate Financial Close and Compliance Check list was be put in place for the Organization and a step added to the to reconcile cash (review and post recurring bank transfer activity) quarterly. An additional step will be added to assess any future changes to the replacement reserve transfer levels when the Contract renews annually. Completion Date: February 2024
Finding 2024-002
Finding 2024-002, Rent Deposits Criteria: The federal program 14.181 requires that all receipts of the project shall be deposited in the name of the project in a bank, and the funds must be used exclusively for the benefit of the project. Condition and Context: Resident rents collected by the Sponsor were not transferred to the Organization monthly. Cause: There was turnover in staff, and the new staff was not aware of the requirement. Effect: The Organization was not in compliance with program requirements. Identification as a repeat finding: Yes. Questioned costs: None. Recommendation: We recommend that the Organization’s sponsor transfer tenant rent to the Organization monthly. View of responsible officials: Management agrees and confirms resident rents collected by the Sponsor will be transferred to the Organization monthly. A catch-up entry will be made and monthly transfers will be setup and will be overseen by the Assistant Controller. The separate Financial Close and Compliance Checklist put in place for the Organization will include this process, and sufficient staff training will also be provided. Estimated completion date: March 2025
Finding 2024-001
Finding 2024-001, Replacement Reserve Deposits (Assistance Listing No. 14.181) Criteria: The federal program 14.181 requires that the Owner 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. An amount as required by HUD will be deposited monthly in the reserve fund. Condition and Context: Timely deposits were not made to the reserve account. Five (5) out of the 12 monthly required deposits into the replacement reserve were not timely deposited during the first half of the fiscal year. Cause: There was turnover in staff during the year, and the new staff was not aware of the monthly deposit requirement. Effect: The Organization was not in compliance with the monthly deposit requirement. Identification as a repeat finding: Yes. Questioned costs: None. Recommendation: We recommend that the Organization regularly monitors deposits in the reserve for replacement to ensure that it complies with the requirements of 24 CFR sections 891.405 and 891.605 and ensure that personnel in-charge are made aware of the HUD compliance requirements. View of responsible officials: This finding was identified in the June 30, 2023 audit and correction was implemented in the fiscal year ended June 30, 2024. To address this issue the monthly replacement reserve bank transfers were set up in the banking system as ongoing automatic recurring transfers. A separate Financial Close and Compliance Check list was be put in place for the Organization and a step added to the to reconcile cash (review and post recurring bank transfer activity) quarterly. An additional step will be added to assess any future changes to the replacement reserve transfer levels when the Contract renews annually. Completion Date: February 2024
Finding 2024-002
Finding 2024-002, Rent Deposits Criteria: The federal program 14.181 requires that all receipts of the project shall be deposited in the name of the project in a bank, and the funds must be used exclusively for the benefit of the project. Condition and Context: Resident rents collected by the Sponsor were not transferred to the Organization monthly. Cause: There was turnover in staff, and the new staff was not aware of the requirement. Effect: The Organization was not in compliance with program requirements. Identification as a repeat finding: Yes. Questioned costs: None. Recommendation: We recommend that the Organization’s sponsor transfer tenant rent to the Organization monthly. View of responsible officials: Management agrees and confirms resident rents collected by the Sponsor will be transferred to the Organization monthly. A catch-up entry will be made and monthly transfers will be setup and will be overseen by the Assistant Controller. The separate Financial Close and Compliance Checklist put in place for the Organization will include this process, and sufficient staff training will also be provided. Estimated completion date: March 2025