FAC Explorer

Audit 394172

FY End
2025-06-30
Total Expended
$13.55M
Findings
1
Programs
12
Organization: Hanac, Inc. and Affiliates (NY)
Year: 2025 Accepted: 2026-03-25
Auditor: COHNREZNICK LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1182789 2025-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $10.25M Yes 1
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $559,521 Yes 0
16.575 CRIME VICTIM ASSISTANCE $326,861 Yes 0
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $278,769 Yes 0
17.259 WIOA YOUTH ACTIVITIES $222,652 Yes 0
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $200,939 Yes 0
93.667 SOCIAL SERVICES BLOCK GRANT $128,345 Yes 0
93.493 CONGRESSIONAL DIRECTIVES $79,421 Yes 0
14.191 MULTIFAMILY HOUSING SERVICE COORDINATORS $46,396 Yes 0
93.569 COMMUNITY SERVICES BLOCK GRANT $33,800 Yes 0
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $20,886 Yes 0
93.043 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART D, DISEASE PREVENTION AND HEALTH PROMOTION SERVICES $5,053 Yes 0

Contacts

Name Title Type
LLN1UED9KV25 Lola Maroulis Auditee
2128408005 Joseph A. Arnone Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of HANAC, Inc. and Affiliates ("HANAC"), under programs of the federal government for the year ended June 30, 2025. 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 HANAC, it is not intended to and does not present the consolidated and combined financial position, changes in net assets, or cash flows of HANAC. All financial assistance received directly from the federal agencies as well as financial assistance passed through other governmental agencies or nonprofit organizations is included on the Schedule.
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. Pass-through entity identifying numbers are presented where available.
HANAC has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Loans outstanding at the beginning of the year plus loans made during the year are included in the federal expenditures presented in the Schedule. The balance of the loan outstanding at June 30, 2025, consists of the following: Assistance Listing Number: 14.157; Program Name: Supportive Housing for the Elderly - Section 202 Loan Outstanding - affiliated project; Outstanding balance at June 30, 2025: $10,251,400
HANAC has contracted with various funding agencies to perform certain services. Reimbursements received under these contracts are subject to audit by the federal, state and city governments. Upon audit, if discrepancies are discovered, HANAC could be held responsible for reimbursing the agencies for the amounts in question.

Finding Details

Finding 2025-001
Finding No. 2025-001 - Eligibility - Material Weakness U.S. Department of Housing and Urban Development 14.157 Supportive Housing for the Elderly Section 202 Loan 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 During our testing, we noted that the income verification of tenant eligibility through Enterprise Income Verification (“EIV”) system was not performed timely. 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 Context A sample of 7 tenant files were selected from a population of 56. We identified exceptions in 2 out of the 7 files tested. Identification as a repeat finding Yes or no? No 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. Management's Response Management agrees with the recommendation and has begun to implement the following: • A checklist form will be completed for every certification and signed off once file is approved. • An AR form will be created for the move in, transfer and move out process which is to be attached with proof of payment. Once completed it is to be sent to senior staff for review. • The file setup format and recertification updates will be monitored on a monthly basis. • EIVs are being run according to the frequency provisions related to the type of reports we are annually required to complete as per HUD. • Annual inspections are being scheduled as per Annual Recertifications are being processed. • Bi-weekly meetings will be in place to discuss the results collected with a tracking log on the progress of the project. • Trainings will be scheduled to keep on top of HUD updates/compliance procedures; Yardi software trainings; and in-house trainings covering compliance with the files and Yardi 50059 module.