FAC Explorer

Audit 371431

FY End
2024-12-31
Total Expended
$6.50M
Findings
2
Programs
1
Organization: K & L Housing Development Fund Company,inc (NY)
Year: 2024 Accepted: 2025-10-29
Auditor: COHNREZNICK LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1161537 2024-002 Material Weakness Yes E
1161538 2024-002 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $818,840 Yes 1

Contacts

Name Title Type
K5XZJJKY47M6 Deepak Butani Auditee
2127216032 Mike Bisson Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of K&L Housing Development Fund Company, Inc. 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 the Company, it is not intended to and does not present the financial position, changes in net assets or cash flows of K&L Housing Development Fund Company, Inc. 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.
K&L Housing Development Fund Company, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance.
K&L Housing Development Fund Company, Inc. 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. K&L Housing Development Fund Company, Inc. received no additional loans during the year. The balance of the loan outstanding at December 31, 2024 is as follows: Assistant Listing Number Program Name Outstanding balance at December 31, 2024 14.157 Section 202 direct loan $ 5,682,800

Finding Details

Finding 2024-002
Department of Housing and Urban Development Finding No. 2024-2; Section 202, Assistance Listing 14.157 Criteria Tenant lease files are required to be maintained, and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition In connection with our review of 1 lease file for move-ins we noted the following deficiency: 1 file did not have timely income verification through Enterprise Income Verification System (EIV). Cause Management's policies with respect to the determination of eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs N/A Identification as a Repeat Finding N/A Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code R - Section 8 Program Administration E - Eligibility Finding Resolution Status: In process Reporting Views of Responsible Officials Management plans to implement a system to track EIV verification to ensure compliance with tenant eligibility requirements within the 90-day deadline. We will provide ongoing training and support to staff to ensure that the updated rules and regulations on tenant eligibility are followed.