FAC Explorer

Audit 33517

FY End
2022-12-31
Total Expended
$9.55M
Findings
2
Programs
2
Organization: Dona Petra Santiago Apartments Housing Development Fund Corporation (NY)
Year: 2022 Accepted: 2023-10-01
Auditor: Vargas & Rivera LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30960 2022-001 - Yes N
607402 2022-001 - Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $9.10M Yes 1
14.182 Section 8 New Construction and Substantial Rehabilitation $446,453 - 0

Contacts

Name Title Type
H3AGPPENZN11 Georgina Acevedo Auditee
2126774772 Luis Carlos Rivera 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 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. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT - CAPITAL ADVANCE - On September 25, 2009, the Project entered into a Capital Advance/Building Loan Agreement under Section 202 of the National Housing Act of 1959 for the development of housing serving the elderly households. The HDFC was advanced $9,101,000. The advance need not be repaid so long as the housing remains available to elderly persons through March 1, 2051.
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 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. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Dona Petra Santiago Apartments Housing Development Fund Corporation (the "HDFC") and is presented on the accrual basis of accounting. 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 Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the HDFC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the HDFC.

Finding Details

Finding 2022-001
Criteria - Replacement Reserves: Compliance Requirement ? 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: The Project did not make two of the required deposits to the replacement reserve account. Effect: The Project is not in compliance with the Regulatory Agreement. Context: The population included the 12 monthly cash disbursements from the operating account. Cause: There was not enough cash on hand to remit the required deposits. Repeat Finding: Item 2021-001 and 2020-001 Recommendation: The Organization should have procedures in place to ensure deposits are completed on a timely basis in accordance with the requirements. Views of Responsible Officials and Planned Corrective Actions: The Organization acknowledges that the required replacement deposits had not been made due to cash flow constraints. The entity is taking steps to ensure that delinquent replacement reserve deposits are made as soon as is practicable.
Finding 2022-001
Criteria - Replacement Reserves: Compliance Requirement ? 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: The Project did not make two of the required deposits to the replacement reserve account. Effect: The Project is not in compliance with the Regulatory Agreement. Context: The population included the 12 monthly cash disbursements from the operating account. Cause: There was not enough cash on hand to remit the required deposits. Repeat Finding: Item 2021-001 and 2020-001 Recommendation: The Organization should have procedures in place to ensure deposits are completed on a timely basis in accordance with the requirements. Views of Responsible Officials and Planned Corrective Actions: The Organization acknowledges that the required replacement deposits had not been made due to cash flow constraints. The entity is taking steps to ensure that delinquent replacement reserve deposits are made as soon as is practicable.