FAC Explorer

Audit 43750

FY End
2022-03-31
Total Expended
$1.93M
Findings
4
Programs
2
Organization: Pompei Housing Development Fund Company, Inc. (NY)
Year: 2022 Accepted: 2022-11-15
Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
51037 2022-001 - - N
51038 2022-002 - - N
627479 2022-001 - - N
627480 2022-002 - - N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.49M Yes 2
14.195 Section 8 Housing Assistance Payments Program $446,688 - 0

Contacts

Name Title Type
V2ZUNW6M8EN3 Kyle Lyskawa Auditee
3154241821 Bettina Lipphardt Auditor
No contacts on file

Notes to SEFA

Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT MORTGAGE INSURANCE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Pompei Housing Development Fund Company, Inc. (Pompei North Apartments), FHA Project No. 014-11249, and is presented on the accrual basis of accounting. 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 Pompei North Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Pompei North Apartments. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Pompei North Apartments obtained from HUD a guarantee of its mortgage payable. The outstanding balance of this mortgage at March 31, 2022 was $1,456,345.
Title: SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Pompei Housing Development Fund Company, Inc. (Pompei North Apartments), FHA Project No. 014-11249, and is presented on the accrual basis of accounting. 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 Pompei North Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Pompei North Apartments. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Pompei North Apartments did not pass any federal funds to subrecipients for the year ended March 31, 2021.

Finding Details

Finding 2022-001
Finding 2022-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Criteria: Pompei North 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 60 days of the Project?s fiscal year-end. Condition: The required deposit of $23,012 for the year ended March 31, 2021 was made four days after the 60 day deadline. Context: We reviewed the residual receipts deposits during the year. Cause: Pompei North Apartments? surplus cash was not performed timely. Effect: Pompei North Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Recommendation: Pompei North Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement. Views of management and planned corrective action: Pompei North Apartments agrees with the finding and the auditor?s recommendations have been adopted
Finding 2022-002
Finding 2022-002: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Criteria: The HUD Handbook requires owners to perform and document inspections of each unit on at least an annual basis. Condition: Unit inspections were not performed during the year. Context: We reviewed 5 tenant files for documentation of unit inspections. Cause: Pompei North Apartments did not ensure unit inspections continued through COVID. Effect: The tenant?s unit may not be in a decent, safe, and sanitary condition. Recommendation: We recommend that Pompei North Apartments resume unit inspections and ensure those inspections are properly documented in the tenant files. Views of management and planned corrective action: Pompei North Apartments has resumed unit inspections and will ensure those inspections are properly documented in the tenant files.
Finding 2022-001
Finding 2022-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Criteria: Pompei North 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 60 days of the Project?s fiscal year-end. Condition: The required deposit of $23,012 for the year ended March 31, 2021 was made four days after the 60 day deadline. Context: We reviewed the residual receipts deposits during the year. Cause: Pompei North Apartments? surplus cash was not performed timely. Effect: Pompei North Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Recommendation: Pompei North Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement. Views of management and planned corrective action: Pompei North Apartments agrees with the finding and the auditor?s recommendations have been adopted
Finding 2022-002
Finding 2022-002: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Criteria: The HUD Handbook requires owners to perform and document inspections of each unit on at least an annual basis. Condition: Unit inspections were not performed during the year. Context: We reviewed 5 tenant files for documentation of unit inspections. Cause: Pompei North Apartments did not ensure unit inspections continued through COVID. Effect: The tenant?s unit may not be in a decent, safe, and sanitary condition. Recommendation: We recommend that Pompei North Apartments resume unit inspections and ensure those inspections are properly documented in the tenant files. Views of management and planned corrective action: Pompei North Apartments has resumed unit inspections and will ensure those inspections are properly documented in the tenant files.