FAC Explorer

Audit 402963

FY End
2023-11-30
Total Expended
$7.26M
Findings
5
Programs
1
Organization: Mt Pleasant Housing Develpment Fund Company (NY)
Year: 2023 Accepted: 2026-06-03
Auditor: COHNREZNICK LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1216461 2023-002 Material Weakness Yes N
1216462 2023-003 Material Weakness Yes N
1216463 2023-004 Material Weakness Yes E
1216464 2023-005 Material Weakness Yes N
1216465 2023-006 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $7.26M Yes 5

Contacts

Name Title Type
SDE2KVBJSC56 Christopher Cirillo Auditee
2124103153 Wanda Ellison-Osborne Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (“Schedule”) includes the federal award activity of Mt. Pleasant Housing Development Fund Company, HUD Project No. 012-EE094, under programs of the federal government for the year ended November 30, 2023. 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 Mt. Pleasant Housing Development Fund Company, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Mt. Pleasant Housing Development Fund Company. For the year ended November 30, 2023, 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. Mt. Pleasant Housing Development Fund Company has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance.
Mt. Pleasant Housing Development Fund Company has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Mt. Pleasant Housing Development Fund Company received no additional capital advances during the year. The balance of the capital advance outstanding at November 30, 2023 consists of: Assistance Listing Number Program Name Outstanding Balance at November 30, 2023 14.157 Section 202 capital advance $ 6,236,300

Finding Details

Finding 2023-002
During the year ended November 30, 2023, the project did not make the required monthly deposits to the replacement reserve as disclosed. The project was required to make monthly deposits to the reserve in the amount of $5,000 and $14,431 related to Finding 2022-002. Total cumulative deposits due to the replacement reserve during the year ended November 30, 2023 were $74,431 of which the project made deposits of $53,092 leaving an amount remaining due to the reserve of $21,339.
Finding 2023-003
During the year ended November 30, 2023, the project paid expenses in the amount of $45,978. on behalf of other affiliates from project cash without HUD approval. The amount due to the project as of November 30, 2023 is $372,054, which includes $326,076 paid during the year ended November 30, 2022.
Finding 2023-004
During the procedures applied to a sample of 8 tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding tenant eligibility and the maintenance of lease files. 1. Seven instances where the project did not perform the income verification of EIV timely. 2. 1 instance where the annual tenant certification was not performed in a timely manner.
Finding 2023-005
As of November 30, 2023 management has not fully funded the tenant security deposits cash account. The tenant security deposits cash account was underfunded by $9,949.
Finding 2023-006
During the year ended November 30, 2023, the Company distributed $13,000 for damages related to litigation issues in excess of surplus cash available for distribution.