FAC Explorer

Audit 344580

FY End
2024-09-30
Total Expended
$12.80M
Findings
2
Programs
1
Organization: Sjmc Senior H.d.f.c (NY)
Year: 2024 Accepted: 2025-03-03
Auditor: Prager Metis CPAS LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
525513 2024-001 - - N
1101955 2024-001 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $670,739 Yes 0

Contacts

Name Title Type
MN9TYFEC8DF9 James Landy Auditee
9143787000 Satang Janneh Auditor
No contacts on file

Notes to SEFA

Title: Capital Advance Program Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of SJMC Senior Housing Development Fund Corporation (the “Project”) under programs of the federal government for the year ended September 30, 2024. 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 the Project, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Project. De Minimis Rate Used: N Rate Explanation: 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. The Project has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Project has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The capital advance balance at the beginning of the year is included in the total federal expenditures presented in the Schedule. The outstanding capital advance balance at September 30, 2024 was $12,133,700.

Finding Details

Finding 2024-001
Criteria: In accordance with a Regulatory Agreement with HUD dated September 23, 2003, the Project is required to maintain a reserve for replacements fund. Effective September 1, 2016, monthly deposits of $5,000 are required to be paid to a separate FDIC insured bank account and may be further invested in obligations of, or guaranteed by, the United States of America. Condition: During fiscal 2024, the Project should have made nine monthly deposits from January to September 2024 for a total amount of $45,000. The Project did not make any of the required deposits during that time period. Cause: HUD approved a suspension of required deposits from March 1, 2023 to December 1, 2023. The Project was to resume monthly deposits starting January of 2024 but failed to reinitiate automatic withdrawals.Effect: The reserve for replacements account was underfunded by $45,000 during the year causing the Project to not be in compliance with the Regulatory Agreement. Recommendation: Management should fund the required deposits as soon as possible. Management’s Views and Corrective Action Plan: Management’s failure to fund the $5,000 monthly deposits was an oversight which was realized in December 2024. Payments to cover the missing deposits were made in December 2024 and January 2025. Automatic payments have been set up as of January 2025 and the Project is currently up to date.
Finding 2024-001
Criteria: In accordance with a Regulatory Agreement with HUD dated September 23, 2003, the Project is required to maintain a reserve for replacements fund. Effective September 1, 2016, monthly deposits of $5,000 are required to be paid to a separate FDIC insured bank account and may be further invested in obligations of, or guaranteed by, the United States of America. Condition: During fiscal 2024, the Project should have made nine monthly deposits from January to September 2024 for a total amount of $45,000. The Project did not make any of the required deposits during that time period. Cause: HUD approved a suspension of required deposits from March 1, 2023 to December 1, 2023. The Project was to resume monthly deposits starting January of 2024 but failed to reinitiate automatic withdrawals.Effect: The reserve for replacements account was underfunded by $45,000 during the year causing the Project to not be in compliance with the Regulatory Agreement. Recommendation: Management should fund the required deposits as soon as possible. Management’s Views and Corrective Action Plan: Management’s failure to fund the $5,000 monthly deposits was an oversight which was realized in December 2024. Payments to cover the missing deposits were made in December 2024 and January 2025. Automatic payments have been set up as of January 2025 and the Project is currently up to date.