Audit 343963

FY End
2024-10-31
Total Expended
$2.30M
Findings
8
Programs
1

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
524550 2024-001 Significant Deficiency - N
524551 2024-001 Significant Deficiency - N
524552 2024-002 Significant Deficiency - P
524553 2024-002 Significant Deficiency - P
1100992 2024-001 Significant Deficiency - N
1100993 2024-001 Significant Deficiency - N
1100994 2024-002 Significant Deficiency - P
1100995 2024-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $167,742 Yes 2

Contacts

Name Title Type
MMT9XMKP3WK8 Dean Chung Auditee
5622575100 Matt Catlin Auditor
No contacts on file

Notes to SEFA

Title: Note 3 Accounting Policies: The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Corporation has elected to not use the 10% de minimis cost rate. The balance of the HUD Section 811 capital advance at October 31, 2024 is $2,129,400.

Finding Details

Assistance Listing title and number (federal award identification and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Project identification number 074-EH184 and IA05Q881007 and 1992) Auditor non-compliance code: N - Reserve for Replacements Deposits Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $19,200 Statement of Condition 2024-001 (Assistance listing 14.181): The Corporation did not make all of the HUD required reserve for replacement deposits for the year ended October 31, 2024. Criteria: Pursuant to Section 5 of the Regulatory Agreement, the Property is required to make monthly deposits to the reserve for replacements fund as required by HUD. Effect: The Corporation is not in compliance with the Regulatory Agreement and the reserve for replacements is underfunded by $19,200 at October 31, 2024. Cause: Due to cash flow shortages, the deposits to the reserve for replacements for the year ended October 31, 2024 were $19,200 less than the deposits required by HUD. Recommendation: Management should transfer $19,200 from the operating cash account to the reserve for replacements fund or request a suspension of monthly deposits from HUD. Completion date: January 9, 2025 Management Response: Agree. On January 9, 2025, management transferred $19,200 from the operating account to the reserve for replacements fund.
Assistance Listing title and number (federal award identification and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Project identification number 074-EH184 and IA05Q881007 and 1992) Auditor non-compliance code: N - Reserve for Replacements Deposits Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $19,200 Statement of Condition 2024-001 (Assistance listing 14.181): The Corporation did not make all of the HUD required reserve for replacement deposits for the year ended October 31, 2024. Criteria: Pursuant to Section 5 of the Regulatory Agreement, the Property is required to make monthly deposits to the reserve for replacements fund as required by HUD. Effect: The Corporation is not in compliance with the Regulatory Agreement and the reserve for replacements is underfunded by $19,200 at October 31, 2024. Cause: Due to cash flow shortages, the deposits to the reserve for replacements for the year ended October 31, 2024 were $19,200 less than the deposits required by HUD. Recommendation: Management should transfer $19,200 from the operating cash account to the reserve for replacements fund or request a suspension of monthly deposits from HUD. Completion date: January 9, 2025 Management Response: Agree. On January 9, 2025, management transferred $19,200 from the operating account to the reserve for replacements fund.
Assistance Listing title and number (federal award identification and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Project identification number 074-EH184 and IA05Q881007 and 1992) Auditor non-compliance code: Z - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of Condition 2024-002 (Assistance listing 14.181): The Property received a Management Occupancy Review (MOR) rating of Below Average and is unable to locate a response to HUD correcting the findings in the MOR. Criteria: Pursuant to Chapter 6 of the HUD Asset Management Handbook (4350.1 REV-1), deficiencies identified in a MOR must be corrected within 30 calendar days or as otherwise stipulated in the corrective action plan provided. Effect: In accordance with the HUD Handbook, if the HUD field office determines that a good faith effort had not been made to correct deficiencies, the HUD field office can refer the property to Senior Project Manager for troubled projects or to the DEC for enforcement action. Additionally, the property could be found to be in violation of the Project Rental Assistance Contract. Cause: Management believes they responded to all findings within an appropriate time frame, but were unable to find support and never received a close out letter from HUD. Management resent the responses to the findings on January 24, 2025. Recommendation: Management should clear all findings from the MOR and follow up with HUD to request a close-out letter. Completion date: January 24, 2025 Management Response: Agree. On January 24, 2025, management responded to the MOR findings and believes they have adequately addressed all deficiencies. No further action is required.
Assistance Listing title and number (federal award identification and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Project identification number 074-EH184 and IA05Q881007 and 1992) Auditor non-compliance code: Z - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of Condition 2024-002 (Assistance listing 14.181): The Property received a Management Occupancy Review (MOR) rating of Below Average and is unable to locate a response to HUD correcting the findings in the MOR. Criteria: Pursuant to Chapter 6 of the HUD Asset Management Handbook (4350.1 REV-1), deficiencies identified in a MOR must be corrected within 30 calendar days or as otherwise stipulated in the corrective action plan provided. Effect: In accordance with the HUD Handbook, if the HUD field office determines that a good faith effort had not been made to correct deficiencies, the HUD field office can refer the property to Senior Project Manager for troubled projects or to the DEC for enforcement action. Additionally, the property could be found to be in violation of the Project Rental Assistance Contract. Cause: Management believes they responded to all findings within an appropriate time frame, but were unable to find support and never received a close out letter from HUD. Management resent the responses to the findings on January 24, 2025. Recommendation: Management should clear all findings from the MOR and follow up with HUD to request a close-out letter. Completion date: January 24, 2025 Management Response: Agree. On January 24, 2025, management responded to the MOR findings and believes they have adequately addressed all deficiencies. No further action is required.
Assistance Listing title and number (federal award identification and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Project identification number 074-EH184 and IA05Q881007 and 1992) Auditor non-compliance code: N - Reserve for Replacements Deposits Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $19,200 Statement of Condition 2024-001 (Assistance listing 14.181): The Corporation did not make all of the HUD required reserve for replacement deposits for the year ended October 31, 2024. Criteria: Pursuant to Section 5 of the Regulatory Agreement, the Property is required to make monthly deposits to the reserve for replacements fund as required by HUD. Effect: The Corporation is not in compliance with the Regulatory Agreement and the reserve for replacements is underfunded by $19,200 at October 31, 2024. Cause: Due to cash flow shortages, the deposits to the reserve for replacements for the year ended October 31, 2024 were $19,200 less than the deposits required by HUD. Recommendation: Management should transfer $19,200 from the operating cash account to the reserve for replacements fund or request a suspension of monthly deposits from HUD. Completion date: January 9, 2025 Management Response: Agree. On January 9, 2025, management transferred $19,200 from the operating account to the reserve for replacements fund.
Assistance Listing title and number (federal award identification and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Project identification number 074-EH184 and IA05Q881007 and 1992) Auditor non-compliance code: N - Reserve for Replacements Deposits Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $19,200 Statement of Condition 2024-001 (Assistance listing 14.181): The Corporation did not make all of the HUD required reserve for replacement deposits for the year ended October 31, 2024. Criteria: Pursuant to Section 5 of the Regulatory Agreement, the Property is required to make monthly deposits to the reserve for replacements fund as required by HUD. Effect: The Corporation is not in compliance with the Regulatory Agreement and the reserve for replacements is underfunded by $19,200 at October 31, 2024. Cause: Due to cash flow shortages, the deposits to the reserve for replacements for the year ended October 31, 2024 were $19,200 less than the deposits required by HUD. Recommendation: Management should transfer $19,200 from the operating cash account to the reserve for replacements fund or request a suspension of monthly deposits from HUD. Completion date: January 9, 2025 Management Response: Agree. On January 9, 2025, management transferred $19,200 from the operating account to the reserve for replacements fund.
Assistance Listing title and number (federal award identification and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Project identification number 074-EH184 and IA05Q881007 and 1992) Auditor non-compliance code: Z - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of Condition 2024-002 (Assistance listing 14.181): The Property received a Management Occupancy Review (MOR) rating of Below Average and is unable to locate a response to HUD correcting the findings in the MOR. Criteria: Pursuant to Chapter 6 of the HUD Asset Management Handbook (4350.1 REV-1), deficiencies identified in a MOR must be corrected within 30 calendar days or as otherwise stipulated in the corrective action plan provided. Effect: In accordance with the HUD Handbook, if the HUD field office determines that a good faith effort had not been made to correct deficiencies, the HUD field office can refer the property to Senior Project Manager for troubled projects or to the DEC for enforcement action. Additionally, the property could be found to be in violation of the Project Rental Assistance Contract. Cause: Management believes they responded to all findings within an appropriate time frame, but were unable to find support and never received a close out letter from HUD. Management resent the responses to the findings on January 24, 2025. Recommendation: Management should clear all findings from the MOR and follow up with HUD to request a close-out letter. Completion date: January 24, 2025 Management Response: Agree. On January 24, 2025, management responded to the MOR findings and believes they have adequately addressed all deficiencies. No further action is required.
Assistance Listing title and number (federal award identification and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Project identification number 074-EH184 and IA05Q881007 and 1992) Auditor non-compliance code: Z - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of Condition 2024-002 (Assistance listing 14.181): The Property received a Management Occupancy Review (MOR) rating of Below Average and is unable to locate a response to HUD correcting the findings in the MOR. Criteria: Pursuant to Chapter 6 of the HUD Asset Management Handbook (4350.1 REV-1), deficiencies identified in a MOR must be corrected within 30 calendar days or as otherwise stipulated in the corrective action plan provided. Effect: In accordance with the HUD Handbook, if the HUD field office determines that a good faith effort had not been made to correct deficiencies, the HUD field office can refer the property to Senior Project Manager for troubled projects or to the DEC for enforcement action. Additionally, the property could be found to be in violation of the Project Rental Assistance Contract. Cause: Management believes they responded to all findings within an appropriate time frame, but were unable to find support and never received a close out letter from HUD. Management resent the responses to the findings on January 24, 2025. Recommendation: Management should clear all findings from the MOR and follow up with HUD to request a close-out letter. Completion date: January 24, 2025 Management Response: Agree. On January 24, 2025, management responded to the MOR findings and believes they have adequately addressed all deficiencies. No further action is required.