Audit 368800

FY End

2024-12-31

Total Expended

$13.75M

Findings

1

Programs

1

Organization: Council Towers Housing Development Fund Corporation (NY)

Year: 2024 Accepted: 2025-09-29

Auditor: Cohnreznick LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1156466	2024-001	Material Weakness	Yes	B

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$1.96M	Yes	0

Contacts

Name	Title	Type
J3NKVM89ZLG4	Philip Kibel	Auditee
2124539500	Jason Rocker	Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Council Towers Housing Development Fund Corporation, HUD Project No: 012-EE003, under programs of the federal government for the year ended December 31, 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 Council Towers Housing Development Fund Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Council Towers Housing Development Fund Corporation. For the year ended December 31, 2024, no awards were passed through to subrecipients.

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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Council Towers Housing Development Fund Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Council Towers 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. Council Towers Housing Development Fund Corporation received no additional loans during the year. The balance of the loan outstanding at December 31, 2024 consists of:

Finding Details

Finding 2024-001

Finding No. 2024-001 - Allowable Costs / Cost Principals - Significant Deficiency Name of Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Assistance Listing Number: 14.157 Federal Award Identification Number and Year: N/A Name of Pass-through Entity (if applicable): N/A Criteria Loans are not permitted to be made from Project cash without prior authorization from HUD. Condition During the year ended December 31, 2024, the Project paid expenses in the amount of $13,250 on behalf of an affiliate from Project cash without HUD approval. The amount due to the Project as of December 31, 2024 is $13,250. Cause Procedures were not in place to ensure that cash disbursements of Project funds were limited to Project operating costs. Effect or Potential Effect The payments of $13,250 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $13,250 Context The project is billed for a shared invoice, and was not reimbursed from the affiliates timely. Identification as a Repeat Finding No. Recommendation Management has already reimbursed the Corporation. Management should revisit the procedures in place to ensure payments of this nature, being joint invoices, are either approved by HUD or not made in the future from the Corporation, but from the Sponsor. HUD Auditor Noncompliance Code: G - Unauthorized loans from project assets Uniform Guidance Auditor Noncompliance Code: B - Allowable Costs/Cost Principles Finding Resolution Status: Resolved Views of Responsible Officials Council Towers Housing Development Fund Corporation agrees with the finding and the auditor’s recommendations. Workers comp policy was opened under Council Towers Housing Development Fund Corporation to cover union workers in Council Towers Housing Development Fund and 3 other affiliates. Council Towers Housing Development Fund Corporation would pay for the policy and be reimbursed by the affiliates. In 2024 the amount owed was much higher due to an miscalculation by management, where they included other employees that were not covered by policy in their payroll audit. After TUC negotiated with NYSIF the bill was corrected. It was paid at the end of 2024. Council Towers Housing Development Fund Corporation was reimbursed by the affiliates in 2025.