FAC Explorer

Audit 5745

FY End
2023-03-31
Total Expended
$2.09M
Findings
2
Programs
1
Organization: East River Road Housing Development Fund Company,inc. (NY)
Year: 2023 Accepted: 2023-12-07
Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3675 2023-001 Material Weakness Yes P
580117 2023-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $70,310 Yes 0

Contacts

Name Title Type
RJVRZLH4YXA1 Florencio Del Valle Auditee
5853266530 Craig Stevens Auditor
No contacts on file

Notes to SEFA

Title: CAPITAL ADVANCES Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of East River Road Housing Development Fund Company, Inc., HUD Project No. 014-EE256 (the Corporation), under programs of the federal government for the year ended March 31, 2023 and has been prepared in accordance with accounting principles generally accepted in the United States of America. 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 the Corporation, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Corporation. De Minimis Rate Used: N Rate Explanation: The Corporation has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Corporation has received Section 202 capital advances from the U.S. Department of Housing and Urban Development’s Supportive Housing for the Elderly program (Assistance Listing No. 14.157). Under the terms of the capital advance agreement, the Corporation must continue to operate the project for the specified purpose for a period of 40 years. Failure to operate the project in accordance with the capital advance agreement would result in the Corporation being required to repay HUD the entire capital advance, plus interest, since the date of the first advance.

Finding Details

Finding 2023-001
Finding 2023-001 Program U.S. Department of Housing and Urban Development (HUD) – Supportive Housing for the Elderly (Section 202) and Project Rental Assistance, Assistance Listing No. 14.157. Condition We determined a sample selection size of two selections for tenant testing. The Corporation did not complete Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures, before the tenant’s anniversary date, as required by HUD, for one of the two tenants selected for testing. Criteria Tenant recertifications should be completed and maintained as required by HUD requirements. Cause There were no procedures in place to ensure that all annual recertifications were properly completed and maintained. Effect Failure to comply with the annual recertification process is an instance of noncompliance with the Regulatory Agreement. Recommendation We recommend the Corporation establish procedures to ensure that the annual recertifications are performed on a timely basis in accordance with HUD requirements. Reporting Views of Responsible Officials Management agrees with the recommendation and the Corporation’s Board of Directors has made the decision to change property managing agents effective January 1, 2024. It is anticipated that the change to a new property managing agent will allow the Corporation to establish procedures to ensure all recertifications are performed and maintained in accordance with the regulatory agreement.
Finding 2023-001
Finding 2023-001 Program U.S. Department of Housing and Urban Development (HUD) – Supportive Housing for the Elderly (Section 202) and Project Rental Assistance, Assistance Listing No. 14.157. Condition We determined a sample selection size of two selections for tenant testing. The Corporation did not complete Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures, before the tenant’s anniversary date, as required by HUD, for one of the two tenants selected for testing. Criteria Tenant recertifications should be completed and maintained as required by HUD requirements. Cause There were no procedures in place to ensure that all annual recertifications were properly completed and maintained. Effect Failure to comply with the annual recertification process is an instance of noncompliance with the Regulatory Agreement. Recommendation We recommend the Corporation establish procedures to ensure that the annual recertifications are performed on a timely basis in accordance with HUD requirements. Reporting Views of Responsible Officials Management agrees with the recommendation and the Corporation’s Board of Directors has made the decision to change property managing agents effective January 1, 2024. It is anticipated that the change to a new property managing agent will allow the Corporation to establish procedures to ensure all recertifications are performed and maintained in accordance with the regulatory agreement.