Audit 41194

FY End

2022-11-30

Total Expended

$9.66M

Findings

2

Programs

1

Organization: 607 Concord Avenue Hdfc (NY)

Year: 2022 Accepted: 2023-04-18

Auditor: Withum Smith+brown PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
46527	2022-001	-	Yes	P
622969	2022-001	-	Yes	P

ALN	Program	Spent	Major	Findings
14.181	Supportive Housing for Persons with Disabilities	$877,561	Yes	0

Contacts

Name	Title	Type
WDECENZ3FFQ5	Steve Kadin	Auditee
7189933511	Joseph J Perez	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: 1.GENERAL INFORMATION The accompanying schedule of expenditures of federal awards (the schedule) presents the activities of all federal awards of 607 Concord Avenue HDFC. All financial assistance received directly from federal agencies as well as financial assistance passed through other governmental agencies or nonprofit organizations are included on the schedule.2.BASIS OF ACCOUNTING The Schedule is presented using the accrual basis of accounting. The amounts reported in the Schedule may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either cash or a modified cash basis of accounting.3.RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Capital advance, initially in the amount of $8,781,600 has an underlying mortgage note agreement with HUD, secured by the property. The note bears no interest, and repayment is not required as long as the facility remains available to very low income elderly or disabled persons in accordance with HUD regulations for a forty year period and therefore this balance remains unchanged. If the project defaults under the terms of this note, the entire capital advance (plus accrued interest from inception of the advance at a rate of 5.75% per annum) shall become due and payable at the option of HUD.4.BASIS OF PRESENTATION The accompanying schedule includes the federal award activity of 607 Concord Avenue HDFC under programs of the federal government for the year ended November 30, 2022. The information in the 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 607 Concord Avenue HDFC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of 607 Concord Avenue HDFC. 5.SUBRECIPIENTSThe Organization provided no federal awards to sub recipients for the year ended November 30, 2022.6.INDIRECT COST RATE 607 Concord Avenue HDFC does not have federal negotiated indirect cost rate and has elected to use the 10 percent de minimis indirect cost rate allowed under section 200.414 in the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis indirect cost rate.

Finding Details

Finding 2022-001

Finding No. 2022-001: HUD Supportive Housing for Persons with Disabilities Section 811 program, Assistance Listing Number 14.181 Criteria: The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repairs and replacement of capital items. The replacement reserve funds must be deposited in an interest bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. 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. Condition: The required monthly deposits to the replacement reserve were not made on a timely basis for two months and the amount was not deposited for another two months. Context: A review of deposits to the replacement reserve was performed. Cause: The Organization had insufficient cash flows. Effect: The Project is not in compliance with the Regulatory Agreement. Recommendation: The Project should make the required deposit into the replacement reserve account each month. Response: Management concurs with the finding and has implemented procedures to resolve the issue.

Finding 2022-001

Finding No. 2022-001: HUD Supportive Housing for Persons with Disabilities Section 811 program, Assistance Listing Number 14.181 Criteria: The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repairs and replacement of capital items. The replacement reserve funds must be deposited in an interest bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. 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. Condition: The required monthly deposits to the replacement reserve were not made on a timely basis for two months and the amount was not deposited for another two months. Context: A review of deposits to the replacement reserve was performed. Cause: The Organization had insufficient cash flows. Effect: The Project is not in compliance with the Regulatory Agreement. Recommendation: The Project should make the required deposit into the replacement reserve account each month. Response: Management concurs with the finding and has implemented procedures to resolve the issue.