FAC Explorer

Audit 346289

FY End
2023-09-30
Total Expended
$11.00M
Findings
4
Programs
1
Organization: Casita Park Housing Development Fund Corporation (NY)
Year: 2023 Accepted: 2025-03-15
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
528256 2023-001 Material Weakness Yes B
528257 2023-002 Material Weakness - N
1104698 2023-001 Material Weakness Yes B
1104699 2023-002 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $11.00M Yes 2

Contacts

Name Title Type
EX7HKKJPBA17 Christopher Cirillo Auditee
2124103153 Jason Rocker 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, as applicable, the cost principles contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations, and the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Casita Park Housing Development Fund Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of Casita Park Housing Development Fund Corporation, HUD Project No.: 012- EE191, under programs of the federal government for the year ended September 30, 2023. 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 Casita Park Housing Development Fund Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Casita Park Housing Development Fund Corporation.
Title: Summary of significant accounting policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations, and the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Casita Park Housing Development Fund Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations, and the cost principles contained in the Uniform Guidance. Casita Park Housing Development Fund Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: U.S. Department of Housing and Urban Development loan program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, Cost Principles for Non-Profit Organizations, and the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Casita Park Housing Development Fund Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Casita Park Housing Development Fund Corporation has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Casita Park Housing Development Fund Corporation received no additional loans during the year. The balance of the loan outstanding at September 30, 2023 consists of: Outstanding Balance at Assistance Listing September Number Program Name 30, 2023 14.157 Supportive Housing for the Elderly $ 10,056,299 Elderly $ 10,056,299

Finding Details

Finding 2023-001
Finding No. 2023-001; Unauthorized loans from project assets Condition During the year ended September 30, 2023, the project paid insurance expenses in the amount of $4,247 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of September 30, 2023 is $53,397. Effect or Potential Effect The payments of $53,397 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $ 53,397. Context Loans are not permitted to be made from project cash without prior authorization from HUD. Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Identification as a Repeat Finding Prior year's finding 2002-002 Recommendation Management should immediately reimburse the amount due to the project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code B – Allowable Cost/Costs Principles Finding Resolution Status: Resolved Reporting Views of Responsible Officials The Corporation agrees with the finding and the auditor's recommendations have been adopted. As of the report date and subsequent to the statement of financial position date, the $53,397 was repaid back to the Corporation.
Finding 2023-002
Finding No. 2023-002; Underfunding of security deposit account Condition As of September 30, 2023, management has not fully funded the tenant security deposits cash account. The tenant security deposits cash account was underfunded by $10,665. Effect or Potential Effect Management commingled tenant security deposits with its operating cash and did not have sufficient cash balance in the tenant security deposits cash account to cover the tenant security deposits liability as of September 30, 2023. Questioned Costs $ 10,655. Context In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, HUD projects are required to establish and maintain at all times a fully funded separate bank account for tenant security deposits collected. Identification as a Repeat Finding No Recommendation Management should transfer $10,655 from the operating account in order to fully fund the tenant security deposits account. Auditor Noncompliance Code N – Special Tests and Provisions Finding Resolution Status: In process Reporting Views of Responsible Officials The Corporation agrees with the finding and the auditor's recommendations have been adopted.
Finding 2023-001
Finding No. 2023-001; Unauthorized loans from project assets Condition During the year ended September 30, 2023, the project paid insurance expenses in the amount of $4,247 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of September 30, 2023 is $53,397. Effect or Potential Effect The payments of $53,397 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $ 53,397. Context Loans are not permitted to be made from project cash without prior authorization from HUD. Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Identification as a Repeat Finding Prior year's finding 2002-002 Recommendation Management should immediately reimburse the amount due to the project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code B – Allowable Cost/Costs Principles Finding Resolution Status: Resolved Reporting Views of Responsible Officials The Corporation agrees with the finding and the auditor's recommendations have been adopted. As of the report date and subsequent to the statement of financial position date, the $53,397 was repaid back to the Corporation.
Finding 2023-002
Finding No. 2023-002; Underfunding of security deposit account Condition As of September 30, 2023, management has not fully funded the tenant security deposits cash account. The tenant security deposits cash account was underfunded by $10,665. Effect or Potential Effect Management commingled tenant security deposits with its operating cash and did not have sufficient cash balance in the tenant security deposits cash account to cover the tenant security deposits liability as of September 30, 2023. Questioned Costs $ 10,655. Context In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, HUD projects are required to establish and maintain at all times a fully funded separate bank account for tenant security deposits collected. Identification as a Repeat Finding No Recommendation Management should transfer $10,655 from the operating account in order to fully fund the tenant security deposits account. Auditor Noncompliance Code N – Special Tests and Provisions Finding Resolution Status: In process Reporting Views of Responsible Officials The Corporation agrees with the finding and the auditor's recommendations have been adopted.