2025‑001: Board Meetings Criteria: New York Not‑for‑Profit Corporation Law (N‑PCL) §519 requires non-profit organizations to have at least an annual meeting of the board of directors. Condition: Rogers Senior Apartments did not hold an annual meeting of the board of directors during the fiscal year ended December 31, 2025. Context: This issue was entity‑wide and not limited to a single federal program. Cause: The Board did not prioritize or schedule the annual meeting due to competing operational priorities, and there were insufficient procedures to ensure compliance with statutory governance requirements (e.g., a corporate calendar with compliance checkpoints). Effect: Weakening of the control environment and governance oversight, increases the risk that noncompliance, errors, or irregularities may go undetected. Rogers Senior Apartments is not in compliance with state corporate law requirements regarding annual meetings and the annual report of directors. Potential reputational and regulatory risk, including scrutiny from state regulators (e.g., NY Charities Bureau) and possible challenges in demonstrating effective oversight to federal pass‑through entities or awarding agencies. Recommendation: Schedule and hold an annual meeting of the board of directors and document minutes and the annual report of directors. Additionally, Rogers Senior Apartments should adopt a board governance calendar with statutory checkpoints (annual meeting, director elections, policy reviews) and assign responsibility for compliance tracking. Views of management and planned corrective action: The Board agrees with the finding. The board secretary will convene an annual meeting as soon as possible, minutes will be recorded and the annual report of directors prepared and filed with the corporate records in accordance with N‑PCL §519. A governance calendar will be implemented and monitored monthly.
Finding 2025-002: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Criteria: Rogers Senior Apartments is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 90 days of the Project’s fiscal year-end. Condition: The required deposit of $23,541 for the year ended December 31, 2024 was not made within the 90-day timeline. Context: We reviewed the residual receipts deposits during the year. Cause: Rogers Senior Apartments’ surplus cash was not performed timely. Effect: Rogers Senior Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Questioned costs: We consider the $23,141 of surplus cash that was not deposited to be a questioned cost. Recommendation: Rogers Senior Apartments should ensure residual receipts are made within 90 days of year-end in accordance with the HUD Regulatory Agreement. Views of management and planned corrective action: Rogers Senior Apartments agrees with the finding and will make the required payment.
Finding 2025-003: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Criteria: Non Federal entities must establish and maintain effective internal control over Federal programs to provide reasonable assurance of compliance with statutes, regulations, and the terms and conditions of Federal awards. This includes: • Inspections (Repeat Finding): HUD assisted units must undergo regular annual inspections to ensure decent, safe, and sanitary conditions. • Documentation: Tenant files must contain executed (signed and dated) HUD 50059s and supporting documentation to substantiate eligibility and the amounts vouchered. Condition: During our testing of 3 tenant files for compliance with HUD requirements, we noted the following exceptions: • Missed annual unit inspections: Required annual unit inspections were not performed for any units during the audit period. • Missing HUD-50059 form: For one selection, the signed form HUD-50059 file could not be located. Cause: These conditions occurred because of insufficient oversight of the apartment manager, who lacked adequate knowledge of HUD program requirements and internal review procedures were not in place to ensure that files were completed accurately and timely. As a result, key compliance activities were not monitored, reviewed, or corrected as needed. Effect: These conditions resulted in noncompliance with HUD program requirements, increasing the risk that tenants were not properly certified, that assistance payments were inaccurate or unsupported, and that HUD funds were not administered in accordance with applicable regulations and program guidance. The lack of complete, timely, and accurate compliance activities also elevates the risk of repayment obligations, enforcement actions, and reduced assurance over the integrity of program operations. Questioned costs: We had the following questioned costs: • Missed annual unit inspections: None. Relates to inspections and does not impact amounts vouchered. • Missing signed form HUD-50059 file: $4,000 (estimated). Form could not be located to support vouchering for the year. Context: We reviewed 3 tenant files during our audit. Unit inspections were not performed for any units during the fiscal year. For one selection, the form HUD-50059 could not be located. Recommendation: We recommend that Rogers Senior Apartments strengthen its overall internal controls surrounding HUD program compliance, including improvements to supervisory oversight, tenant file documentation practices, and monitoring procedures to ensure that required certifications, inspections, and voucher submissions are completed accurately, timely, and in accordance with HUD regulations. Views of management and planned corrective action: Management agrees with the finding. Rogers Senior Apartments has taken corrective action by replacing the apartment manager and hiring a new regional property manager with significant HUD program experience. The new regional property manager is now providing enhanced oversight, including regular review of tenant files, recertification documentation, and HUD voucher submissions to ensure that all required activities are completed timely, accurately, and in accordance with HUD regulations. Management will continue to monitor compliance and strengthen internal processes to prevent recurrence of these issues.