FAC Explorer

Audit 382347

FY End
2024-05-31
Total Expended
$1.19M
Findings
1
Programs
1
Organization: 1712 and 1715 Housing Development Fund Company, Inc. (NY)
Year: 2024 Accepted: 2026-01-16
Auditor: BAKER TILLY US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1169413 2024-004 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $1.19M Yes 1

Contacts

Name Title Type
Z7ABWFAGYAX5 Mahmoud Khalifa Auditee
6465884126 Heather Weber Auditor
No contacts on file

Notes to SEFA

The schedule of expenditures of federal awards (the Schedule) includes the federal activity of 1712 and 1715 Housing Development Fund Company, Inc., HUD Project No. 012-197NI (the Company) and is presented on the accrual basis of accounting, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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). Because the Schedule presents only a selected portion of operations of the Company, it is not intended to and does present the financial position, changes in net deficit or cash flows of the Company.

Finding Details

Finding 2024-004
Finding 2024-004: Monthly Deposit into Reserve for Repairs and Replacements- Significant Deficiency Assistance Listing No: 14.195 Section 8 Housing Assistance Payments Program Federal Agency: U.S Department of Housing and Urban Development Passed-Through Agency: NA Award Number: NA Award Year: 2024 Compliance Requirement: Special Tests Criteria: An amount as required by HUD or the state agency for 24 CFR Part 883 projects, as applicable, shall be deposited monthly in the reserve fund in accordance with the Regulatory Agreement or HAP contract (24 CFR sections 880.601, 880.602, 881.601 and 883.701).The Project is required to make monthly deposits into their reserve for repairs and replacement account in accordance with their mortgage agreement and HUD. Condition: During our testing, we noted the Project did not submit one of the required monthly deposits during the year. Cause: The payment for the reserve for repairs and replacement account was paid with the mortgage after year end. Effect or Potential Effect: The reserve for repairs and replacement account was underfunded by year end, therefore the Project is not incompliance with Uniform Guidance and HUD. Questioned Cost: $1,812.50 was underfunded to the reserve for repairs and replacement for the year ended May 31, 2024. Recommendations: We recommend that management have a policy in place to review cash transfers to ensure required deposit guidelines are satisfied each year on a timely basis.