Audit 358446

FY End
2024-12-31
Total Expended
$7.50M
Findings
4
Programs
1
Year: 2024 Accepted: 2025-06-10

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
564308 2024-001 Significant Deficiency - N
564309 2024-001 Significant Deficiency - N
1140750 2024-001 Significant Deficiency - N
1140751 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $6.40M Yes 1

Contacts

Name Title Type
VZGRYMFNDBX9 Elizabeth Mbakaya Auditee
9736232800 Michael Pintabone Auditor
No contacts on file

Notes to SEFA

Title: NON-CASH EXPENDITURES Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of New Community Hudson Senior Housing Corporation (the “Organization”) 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 Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Organization has not previously received a negotiated indirect cost rate, nor has it elected to use the 10% de minimis indirect cost rate allowable under Uniform Guidance. The Project was financed by a capital advance from HUD in the amount of $6,395,641. The advance is secured by an enforcement mortgage on the property of the Organization. The mortgage, which matures in August 2038, bears no interest and repayment is not required so long as the housing remains available for very low-income elderly persons or very low-income persons with disabilities. Since the mortgage is not repayable so long as the Organization complies with HUD regulations, the proceeds from the mortgage have been recorded as net assets with donor restrictions. Upon maturity the Organization will release this amount from net assets with donor restrictions. The outstanding balance of the capital advance was $6,395,641 at December 31, 2024 and 2023.
Title: SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of New Community Hudson Senior Housing Corporation (the “Organization”) 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 Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Organization has not previously received a negotiated indirect cost rate, nor has it elected to use the 10% de minimis indirect cost rate allowable under Uniform Guidance. There were no subrecipients present for the year ended December 31, 2024.

Finding Details

In accordance with 24 CFR 891.400(e), a separate interest-bearing project fund account shall be maintained in a depository or depositories which are members of the Federal Deposit Insurance Corporation or National Credit Union Share Insurance Fund and all tenant payments, charges, income and revenues arising from project operation or ownership shall be deposited to this account. During our testing, we noted that the project fund account used by the Organization was not an interest-bearing account. Subsequent to the initial rental assistance contract, changes to HUD regulations resulted in the requirement that the project fund account be an interest-bearing account. This change was an oversight by the Organization’s management. Project funds would not earn interest in accordance with HUD requirements. We recommend that the Organization utilize an interest-bearing account for project funds in accordance with HUD requirements. Management has started utilizing an interest-bearing account for the project effective May 2025, as soon as they became aware of the new HUD compliance requirement. Planned Implementation Date of Corrective Action is May 2025. Person responsible for the corrective action plan is Elizabeth Mbakaya, CFO.
In accordance with 24 CFR 891.400(e), a separate interest-bearing project fund account shall be maintained in a depository or depositories which are members of the Federal Deposit Insurance Corporation or National Credit Union Share Insurance Fund and all tenant payments, charges, income and revenues arising from project operation or ownership shall be deposited to this account. During our testing, we noted that the project fund account used by the Organization was not an interest-bearing account. Subsequent to the initial rental assistance contract, changes to HUD regulations resulted in the requirement that the project fund account be an interest-bearing account. This change was an oversight by the Organization’s management. Project funds would not earn interest in accordance with HUD requirements. We recommend that the Organization utilize an interest-bearing account for project funds in accordance with HUD requirements. Management has started utilizing an interest-bearing account for the project effective May 2025, as soon as they became aware of the new HUD compliance requirement. Planned Implementation Date of Corrective Action is May 2025. Person responsible for the corrective action plan is Elizabeth Mbakaya, CFO.
In accordance with 24 CFR 891.400(e), a separate interest-bearing project fund account shall be maintained in a depository or depositories which are members of the Federal Deposit Insurance Corporation or National Credit Union Share Insurance Fund and all tenant payments, charges, income and revenues arising from project operation or ownership shall be deposited to this account. During our testing, we noted that the project fund account used by the Organization was not an interest-bearing account. Subsequent to the initial rental assistance contract, changes to HUD regulations resulted in the requirement that the project fund account be an interest-bearing account. This change was an oversight by the Organization’s management. Project funds would not earn interest in accordance with HUD requirements. We recommend that the Organization utilize an interest-bearing account for project funds in accordance with HUD requirements. Management has started utilizing an interest-bearing account for the project effective May 2025, as soon as they became aware of the new HUD compliance requirement. Planned Implementation Date of Corrective Action is May 2025. Person responsible for the corrective action plan is Elizabeth Mbakaya, CFO.
In accordance with 24 CFR 891.400(e), a separate interest-bearing project fund account shall be maintained in a depository or depositories which are members of the Federal Deposit Insurance Corporation or National Credit Union Share Insurance Fund and all tenant payments, charges, income and revenues arising from project operation or ownership shall be deposited to this account. During our testing, we noted that the project fund account used by the Organization was not an interest-bearing account. Subsequent to the initial rental assistance contract, changes to HUD regulations resulted in the requirement that the project fund account be an interest-bearing account. This change was an oversight by the Organization’s management. Project funds would not earn interest in accordance with HUD requirements. We recommend that the Organization utilize an interest-bearing account for project funds in accordance with HUD requirements. Management has started utilizing an interest-bearing account for the project effective May 2025, as soon as they became aware of the new HUD compliance requirement. Planned Implementation Date of Corrective Action is May 2025. Person responsible for the corrective action plan is Elizabeth Mbakaya, CFO.