FAC Explorer

Audit 363342

FY End
2025-03-31
Total Expended
$2.75M
Findings
2
Programs
2
Organization: Friendship Manor Housing Development Fund Company, Inc. (NY)
Year: 2025 Accepted: 2025-07-30
Auditor: Efpr Group Cpa’s PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
572209 2025-001 - Yes C
1148651 2025-001 - Yes C

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.34M Yes 1
14.195 Project-Based Rental Assistance (pbra) $414,699 - 0

Contacts

Name Title Type
X9EJJGQCFVG4 Andrea Mays Auditee
7168542972 Robert Williams, CPA Auditor
No contacts on file

Notes to SEFA

Title: HUD Insured Mortgage Accounting Policies: The information 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent that such costs are included in the Federal financial reports used as the source for the data presented. The de minimis election allows the Company to allocate 10% of indirect costs to grants with periods ending on or before September 30, 2024 and 15% of indirect costs to grants with periods after September 30, 2024. The Company does not use the de minimis election. The amount reported for Assistance Listing No. 14.155 in expenditures relate to a HUD insured mortgage. The ending balance of the loan is $2,277,225 at March 31, 2025.

Finding Details

Finding 2025-001
Condition - Management withdrew $42,926 of funds during the year ended March 31, 2024 to purchase a vehicle from the reserve for replacements account with HUD approval, however, management subsequently acquired a loan to finance the vehicle purchase and used the reserve funds for other purposes. Criteria - Funds withdrawn from the reserve for replacements account are to be used for the purpose disclosed on the Funds Authorization form and loans taken out requires HUD approval. Effect - The Company was not in compliance with the above criteria. Cause - Funds withdrawn were not used for their intended purpose and has yet to be returned to the reserve account. Furthermore, management did not receive HUD’s approval for the vehicle loan. Repeat Finding - This is a repeat of finding 2024-001 from the prior year. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Recommendation - We recommend that the $42,926 of funds withdrawn be used to pay off the loan or to be returned to the reserve for replacement account. Management’s Reply - Management will use the $42,926 of funds withdrawn from the reserves for replacements to payoff the loan acquired for the vehicle as originally intended.
Finding 2025-001
Condition - Management withdrew $42,926 of funds during the year ended March 31, 2024 to purchase a vehicle from the reserve for replacements account with HUD approval, however, management subsequently acquired a loan to finance the vehicle purchase and used the reserve funds for other purposes. Criteria - Funds withdrawn from the reserve for replacements account are to be used for the purpose disclosed on the Funds Authorization form and loans taken out requires HUD approval. Effect - The Company was not in compliance with the above criteria. Cause - Funds withdrawn were not used for their intended purpose and has yet to be returned to the reserve account. Furthermore, management did not receive HUD’s approval for the vehicle loan. Repeat Finding - This is a repeat of finding 2024-001 from the prior year. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Recommendation - We recommend that the $42,926 of funds withdrawn be used to pay off the loan or to be returned to the reserve for replacement account. Management’s Reply - Management will use the $42,926 of funds withdrawn from the reserves for replacements to payoff the loan acquired for the vehicle as originally intended.