FAC Explorer

Audit 5746

FY End
2023-03-31
Total Expended
$1.05M
Findings
2
Programs
1
Organization: Corn Hill Housing Development Fund Corporation (NY)
Year: 2023 Accepted: 2023-12-07
Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3676 2023-001 Material Weakness Yes P
580118 2023-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $30,516 Yes 0

Contacts

Name Title Type
EFMZK63RVJ64 Florencio Del Valle Auditee
5853266530 Craig Stevens Auditor
No contacts on file

Notes to SEFA

Title: CAPITAL ADVANCES Accounting Policies: BASIS OF ACCOUNTING The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Corn Hill Housing Development Fund Corporation, HUD Project No. 014-HD099 (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: INDIRECT COST RATE 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 811 capital advances from the U.S. Department of Housing and Urban Development’s Supportive Housing for Persons with Disabilities program (Assistance Listing No. 14.181). Under the terms of the capital advance agreements, 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 Persons with Disabilities (Section 811) and Project Rental Assistance, Assistance Listing No. 14.181. Condition One tenant file was selected for testing. However, this tenant file could not be located. As a result, the following documentation could not be located to determine eligibility, as required by HUD regulations:  Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures,  A completed and signed application,  A signed lease agreement, and  The move-in and move-out inspection forms. Criteria Tenant files and all required documents should be maintained as established by HUD requirements. Cause There were no procedures in place to ensure that all tenant files were properly maintained. Effect Inadequate tenant file documentation has resulted in the Corporation’s inability to comply with HUD regulations. Recommendation We recommend the Corporation to establish procedures for maintaining tenant files, including all required documents, to comply with HUD requirements for verification of tenant information, as required. 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 tenant files are properly maintained to comply with HUD regulations.
Finding 2023-001
Finding 2023-001 Program U.S. Department of Housing and Urban Development (HUD) – Supportive Housing for Persons with Disabilities (Section 811) and Project Rental Assistance, Assistance Listing No. 14.181. Condition One tenant file was selected for testing. However, this tenant file could not be located. As a result, the following documentation could not be located to determine eligibility, as required by HUD regulations:  Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures,  A completed and signed application,  A signed lease agreement, and  The move-in and move-out inspection forms. Criteria Tenant files and all required documents should be maintained as established by HUD requirements. Cause There were no procedures in place to ensure that all tenant files were properly maintained. Effect Inadequate tenant file documentation has resulted in the Corporation’s inability to comply with HUD regulations. Recommendation We recommend the Corporation to establish procedures for maintaining tenant files, including all required documents, to comply with HUD requirements for verification of tenant information, as required. 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 tenant files are properly maintained to comply with HUD regulations.